Final answer:
The economic failures by 1990-91 had a significant impact on various aspects of the economy, including the near-collapse of the banking system, erosion of credit market confidence, and decline in consumer demand. These factors hindered economic recovery and highlighted the need for external interventions.
Step-by-step explanation:
The economic failures by 1990-91 had a significant impact on various aspects of the economy. It led to the near-collapse of the banking system and eroded the confidence of credit markets, preventing economic recovery. The unequal distribution of wealth based on consumer spending worsened the situation, as declining consumer demand resulted in further economic decline. The combined effects of bank failures, stock market crashes, unemployment, and weakened consumer demand made it clear that the economy would not recover on its own quickly.