Anonymous Internet Discussion Forum



  Category:

Economics




### You are viewing a page indexed by search engine. All comments on the topic are put together without order and may be confusing to read. To see organized discussion click here. ###

Are Economic Recessions Inevitable?

It's created. Money is made when they make everyone believe everything is awesome. You buy the shares from the wealthiest at the top again, then they create another crash. When the dust clears, wall st and their wealthy clients are given stolen money from your future by central banks to be first in the market. They always end it with the public buying the bubble shares again. Crashes are designed for them to profit. Do you feel better w/ 25 hrs week job and no money to invest?[1]I would say they are inevitable. Take for example that some activities in our society our dependent on climatic conditions or harvest. This will be important especially in agriculture countries. If their output is small, people earn less money, also they have to import more, which cost money. So I think some recessions are inevitable and some are made by men. But in both cases we can restrict their impacts. For example by making savings in better times.capitalist recessions - yes.
According to Marx, in capitalism, improvements in technology and rising levels of productivity increase the amount of material wealth (or use values) in society while simultaneously diminishing the economic value of this wealth, thereby lowering the rate of profit—a tendency that leads to the paradox, characteristic of crises in capitalism, of “poverty in the midst of plenty,” or more precisely, crises of overproduction in the midst of underconsumption.[2]They say history repeats itself, and our economic history is no exception to that. As a freshman in college, I am in my introductory economics classes about the business cycle. The fact one can find a definition explaining the constant trade-off between expansion and recession in any economics textbook is a good hint that recessions have become an established and expected part of society. It depends upon who you ask... All prior economists from Smith to Keynes to Friedman knew that recessions are indeed inevitable. However, economics has a problem simialr to physics: String Theory. There now exists enough schools of thought so as to beg the question if there does not exist a unifying theory? Find the theory and recessions will dissipate... Recession occurs only in luxury economy. Primary resources like food, housing, energy, healthcare, defense are always in demand. But goods such as auto, electronics, entertainment, furniture, fashion are subject to really recession because demand for these goods can be satisfied. The goods are durable and takes years to replace, also consumers may lose interest in certain non essential goods. Also forces like Inflation especially of essential goods, limit consumption. If there were no government deficits, no wars, no natural disasters, no industrial accidents, no limit on natural resources and post secondary education was manditory and free then recessions could be avoided completely. However unless all those conditions are met there is always the possibility of a recession. They are not. They are entirely man made. We need only stop the repetitious behavior that brings them on.
Things are going well and we believe they won't last. We rush out to borrow and spend more. We now have to pay back and spend less. Less spending slows down economy. The boom depends more and more upon borrowed money. The bust is inevitable when done spending what was borrowed.But alas, when the bust comes we borrow more to get out of it. If we eliminate borrowing, we eliminate recessions. Perhaps comprehensive government involvement (not 'interference') in the dissemination of information relevant to the economy to anyone who requests it (think of FOIA on a large, proactive scale) would at least mitigate some of the more extreme aspects of recession. For example, if one requested information regarding the economic model of health care and received it promptly enough, one could better decide how and where money should be spent to achieve optimal medical outcomes.yeah these r inevitable but to some extent. As in trade cycle phases its told that if an economy is in depression at start then after certain time due to some factors it'll turn itself into rival then after certain period turns into boom or prosperity & after in contraction or recession which after some time again trun into depression. so when ther is boom in economy then ther r more chances that next will be recession or contraction. But its false. when there is sudden earthequake, floods etc. Is it possible that the slow-down of a recession is proportional to the amount of expansion that occurred during the boom as a result of spending? Saving insulates you from the effects of recession. The less you spend, the less you feel it when your spending money is drying up. As long as there are market imperfections, recessions will happen; assymetrical information (among other things) leads to overinvestment in some sector (a bubble)(recently the financial). The situation cannot last, and the resolution is painful to the economy (the bubble bursts). If everybody knew everything instantly, we might not have recessions. With an incompetent leadership it is. Take for example Great Britain - it is in the worst position of all western European Union countries. Is it because recession is inevitable, or because bad moves are being taken by the government?[3] Easiest way to answer this question is to look at the past. Which countries had economic recessions? What social systems did they have? Why did recessions occur? Why they didn't occur in some other countries?

I am sure by looking at the facts, answers will become clear.

Can people do "extraordinary" things to prevent recession?

I am convinced they can ... if they change the attitude towards life, work, priorities. Wise leadership also helps.
Nothing is inevitable! Except death!!

There are ups and downs in life, and so is the case with economy. However, saying that there is nothing that can be done to avoid it is not helpful.

In tough times, people reach for tough measures. In tough times people do things they would not do under normal circumstances.

After earthquakes, people gather together and rebuild cities. They dont ask if economy is bad and if it can support construction work! So is the case after wars. I'm writing an economics essay on this subject and need some inspiration. If there is anyone who has any significant knowledge of the subject and would like to share their thoughts I would be most grateful. As for me, I'd say that they aren't although I understand that this is going to take some explaining. HELP!!Are Economic Recessions Inevitable?





Expand a current thought with...

References:

1. http://buddeli.com
2. http://en.wikipedia.org/wiki/Overproduction
3. http://www.youtube.com/watch?v=94lW6Y4tBXs


copyleft © 2011 explore-ideas.com - About - Terms of use