As a result, there is less demand for business products and services, less money in the economy hurting retail sales and resulting in lower sales tax, lower property values resulting in loss of homeowner equity and lower property and capital gains taxes, significant downturn in the equity markets. Lower levels of government services due to loss income and property tax revenues. Low consumer confidence. Possible runs on banks. Most incumbents lose elections.
Many larger businesses consolidate picking up business and workers from firms that failed.
Lower tax revenues continue to plague government. Just as many prepare to celebrate the new millenium, computers that fail to recognize the fact that there were 366 days in 2000 crash. This obviously paints a grim picture. The implications of this situation are quite profound. To mitigate this problem, every person, government, business and non-profit organization must overcome their denial and anger, and move on to productive problem solving.