As reported by the Bretton Woods Commission, the era of liberal finance and expanding trade has led to other disappointing results, mostly in the form of high unemployment rates in wealthier nations. Unemployment in wealthier nations had risen from two to three percent on an average in previous years, but rates were climbing to between five to six percent. OECD economies had an averaged of eight percent unemployment in 1994. Capital investments from wealthier nations declined in the 1990 s. Peaking at twenty-four percent of the gross domestic product in 1973 and fell below twenty percent in following years.
Investment is needed to replace capital.
Because of deregulation, investors were no longer obligated to reinvest capital into national economies and stimulate economic growth. When capital is not reinvested, governments in wealthier societies found their economies growing slower. Governments are increasing accumulating larger budget deficits, which in turn, causes governments to begin borrowing more money to finance their debt. The Bretton Woods commission urged governments to consider a new international money-trading system, before the current system caused any more destruction. Investors of the free markets continue to insist that governments should give up their authority in the financial market and let privates markets direct the global market, but the reality of the past twenty-five years of instability and crisis insists governments somehow have to intervene.