A recession or depression is a period of economic decline that is characterized by a reduction in the GDP (Gross Domestic Product), employment rates, consumer spending, and overall economic activity. While these terms are often used interchangeably, they have distinct characteristics that differentiate them. A recession is a milder and shorter decline in economic activity, typically lasting for a few months, while a depression is a more severe and prolonged economic downturn that can last for several years.
There are several factors that can contribute to causing a recession or depression. One of the most common causes is a decline in consumer spending. When consumers cut back on their spending, it can lead to a decrease in demand for goods and services, which can in turn lead to a decrease in production and employment. This can create a cycle of declining economic activity, further reducing consumer confidence and spending.
Another common cause of a recession or depression is an increase in interest rates. When interest rates are raised, it becomes more expensive for businesses and individuals to borrow money, which can reduce their ability to invest in new projects or make major purchases. This can lead to a decrease in economic growth and an increase in unemployment.
External factors, such as natural disasters, political instability, or global economic crises, can also contribute to causing a recession or depression. These events can disrupt supply chains, reduce consumer confidence, and lead to a decline in economic activity.
Monetary and fiscal policy decisions made by governments and central banks can also play a role in causing a recession or depression. For example, if a government decides to cut spending or raise taxes during a period of economic weakness, it can further reduce consumer spending and economic growth. Similarly, if a central bank raises interest rates too quickly or too sharply, it can lead to a decrease in investment and economic activity.
Overall, a recession or depression can be caused by a combination of these factors, and identifying the root causes can be complex. However, it is important for policymakers to monitor economic indicators and take appropriate measures to mitigate the impact of economic downturns and stimulate recovery. By understanding the causes of recessions and depressions, governments and central banks can implement effective policies to stabilize the economy and promote long-term growth.
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Recorded this in December, and got Terri to edit it then, and was hoping to get it out before the next recession… but I didn't want to release it until after the "Hitler's Socialism" and "Stick to Tanks" videos, for obvious reasons.
And while I did use several sources for this video, the main one I'd recommend is Murray Rothbard's "America's Great Depression" which explains the causes of recessions and depressions amazingly well. Great book.
Also for books on basic economics, I'd recommend Hazlitt's "Economics in One Lesson", and after that Thomas Sowell's "Basic Economics".
I've been following the current 'historic' economic situation, so if you'd like me to talk about it, let me know.
Cheers!
You should do a comparison on how union labor impacts skilled labor income
You can't go forward when You go left. When You go left You got recession and…
And it should be understood, even without deep study in the science of economics that interest is almost a natural law, for several reasons.
1) The value of being able to do something now is worth more than the potential to do something in the future. Time is a cost because you may need your assets immediately, and the circumstances in which you’re going to spend those assets may not exist some weeks or months in the future. So to repay the cost of borrowing now, you need to incentivize by repaying more in the future.
2) We live on a planet that has seasons. If you’re going to plant crops, you can’t just do it at any time, it has to happen in a specific timeframe. Seeds aren’t worth as much as food, but you can turn 10 pounds of seeds into 1,000 pounds of food…if you act in time to plant and harvest. And every element of human commerce is based on the production of food since, if we don’t produce enough, there is no other economic activity we can do to remedy it.
Im sorry but this video is BS from start to finish.
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