The need for large-scale government spending was tied to mass unemployment. The 99 percent’s halt in buying contributed to the financial crisis, which led to production cuts, which in turn caused workers to lose their jobs and have even less money to buy goods. This led to still more production cuts, and unemployment soared.

Mass unemployment created great social problems. Poverty increased dramatically, although in most industrialized countries unemployed workers generally received some meager unemployment benefits or public aid that prevented starvation. Millions of unemployed people lost their spirit, and homes and ways of life were disrupted in countless personal tragedies. Only strong government action could deal with the social powder keg preparing to explode.