New Depression

The New Depression was an economic downturn that stained the late 2070s and 2080s in Kunari City. The New Depression was part of a larger global economic collapse, caused partially by famine, destabilization, and inflation in many nations worldwide. Particularly, Juwon was seriously affected by an environmental phenomenon called the Dry Decades, during which precipitation levels dropped immensely, destroying farmland and causing widespread droughts. This cause the total collapse of many smaller nations, particularly those basing their economies on the export of agricultural products. This phenomenon then combined with predatory economic policies, inflation, and the breakout of various Water Wars, causing more economic crashes. By 2076, most of the world was in an economic crisis. In 2079, the GEC was transitioned to an entirely electronic currency in order to prevent overprinting and to stabilize its value.
The effects of the New Depression first hit Kunari City in 2080, as the GEC began to drop even further in purchasing power and businesses began to lay off thousands of employees, not wanting to lose profits as foreign powers began to place protective tariffs to try to stabilize their economies. Kunari City, the hearth of international business and commerce, suffered greatly from foreign tariffs, with overproduction plaguing many businesses. Additionally, as the GEC began drop in value, consumers lost their purchasing power entirely - stagnating the local economy as well. Unemployment skyrocketed and basic welfare programs were put in place to keep unrest at bay.
The 2080s saw record unemployment rates, with over 33% of the Metro population being unemployed. While basic welfare programs were present - they were oftentimes insufficient in supporting those at the foot of society. Thus, many turned to Vipers and other figures in their community, creating community structures and unofficial governments outside of KCMA oversight. Crime against corporate assets grew immensely during this time too, causing millions in damage.
Public works projects, recovering economic conditions, and government stipends saw unemployment rates drop to 14% by the late 2080s. However, economic hardship still plagued many, with over 25% of citizens in Kunari City in January of 2089 were living below the poverty line, and homelessness and violent crime were at an all-time high - at least before the outbreak of the Inner-City Wars. Riots and protests lasted throughout the year, coming to a climax during the release of the Stabilization Acts in August of 2089. The Stabilization Acts saw stipends and financial aid given to corporations, with the hope of stabilizing the economy from the top down. While corporate profits increased and industry returned to pre-depression numbers, the economy remained in recession for many.
By late 2090, most economists within the KCMA agreed that the New Depression was functionally over. The prices of agricultural goods rose once more as droughts subsided and production returned to a normal value; thus, tariffs were lifted and international business commenced once more. Additionally, unemployment dropped by over 5% as government labor programs were developed in partnership with Vulcan to aid in maintaining infrastructure. Kunari City's GDP returned to pre-depression numbers, and the economy seemed to be in good stride once again.
Some claim Kunari City never truly recovered from the New Depression, citing various longstanding effects on the KCMA's economy. Unemployment remains at 10%, higher than it ever was before the New Depression. The GEC inflated at a rate much higher than in the years leading up to the New Depression as well, and prices remain high on everyday goods. Crime continues to permeate society in Kunari, with Vipers having increased in reputation and community favor during the bleak years of the 2080s. Additionally, more radical critics claim the increased level of government cooperation with corporations will only lead to worse economic conditions in the future.