Question

"Unemployment was common, particularly during times of low demand for industrial goods." how was that possible? in my opinion,industrial goods were in more demand at that time . Then how was it possible that industrial goods were having less demand?

Answer 1

Dear Student,

The statement says that there were periods of low demand.

a. The process of industrialisation in the Russian empire was rather very slow.
b. Majority of its population was dependent on agriculture and earned their livelihood.
c. Industries were confined to only few regions and sectors.
d. Further, Russia's entry into wars with Japan, Germany and Austria gave a huge blow to its industrial sector
e. As far as demand is concerned, the demand for industrial goods was less at times owing to the nature Russian economy which was predominantly agrarian in nature
f. Further demand fluctuated and was dependent on the income of the people .
g. Inflation, price rise also impacted the demand of the goods.
h. Less demand for goods led to unemployment in the industries


Regards