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Author Topic: What is the cause of economy rise and fall.  (Read 1417 times)
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June 17, 2020, 07:14:43 AM
 #21

Yes, it's because of us, population. We're the manpower of the economy of our countries and without us, a country can't live on its own. Factors that can make an economy fall is through a crisis like this covid19 outbreak.

This pandemic brought recession to our country that's why the economy is consistently going down and economic activity are being stopped due to the risk of the covid-19. Population and businesses are really a big factor in helping the economy to rise. This GCQ really helps some businesses to operate and undergo a "new normal" just to make it happen.

As we see, it made a lot of countries suffer for months and even up to now.

USA, Brazil, and India are most countries that have a huge infected cases right now. US really have a hard time recovering from their economy because of the protests that are happening in their country. In India, the use of cryptocurrency are being prohibited again because they don't see it as an effective tool to recover economically because of their authority.

Probably, this pandemic will lasts longer.

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June 17, 2020, 08:19:44 AM
 #22

Some countries economy are constant and some economy rise and fall, from my understanding I suggest that is because of government,and population of the country. What is your suggestion
I think the main cause of a country's economy going up and down is the country's political condition..  investment policies, foreign/domestic policies, import/export policies, tourism policies and other policies issued by the head of government in the country can affect the country's economic conditions.  to be more accurate, you can read this BOOK


If the government is not performing well and not planning all of its actions, then people will really suffer from its passiveness. Authorities should become more aware about our economy due to economic crisis that we are experiencing because it can increase our taxes that we need to pay as this pandemic is still ongoing. Although the government implemented GCQ where businesses are open, still the plan is not that safe and studied enough because of the constant increase in covid-19 cases. Probably, our economy will really have a hard time recovering because our government is not prioritizing its economy and people. They focused on other issues like, political condition and other laws that are not necessary during this pandemic. They don't think about how they can make our economy stable enough.
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June 17, 2020, 10:19:46 AM
 #23

Some countries economy are constant and some economy rise and fall, from my understanding I suggest that is because of government,and population of the country. What is your suggestion

Governments of every country should be aware about the damages brought by this pandemic in all sectors. Business sectors are really suffering because of the prohibited operations of small and large businesses. Some businesses are losing due to the risk of getting the disease from its customers once it opens. The government should have a proper and precise plan before implementing other possible actions. New set of rules and regulations should be studied and implemented so that we can lessen the risks of getting the disease when we try to open businesses. Even those malls, clinics, offices, and etc., should follow the guidelines regarding the safety of all and to recover economically.

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June 17, 2020, 10:44:49 AM
 #24

Yes, it's because of us, population. We're the manpower of the economy of our countries and without us, a country can't live on its own. Factors that can make an economy fall is through a crisis like this covid19 outbreak.

This pandemic brought recession to our country that's why the economy is consistently going down and economic activity are being stopped due to the risk of the covid-19. Population and businesses are really a big factor in helping the economy to rise. This GCQ really helps some businesses to operate and undergo a "new normal" just to make it happen.
It really does.

Some companies have to lose their employees just to sustain their businesses and that's one big impact by this pandemic.

As we see, it made a lot of countries suffer for months and even up to now.

USA, Brazil, and India are most countries that have a huge infected cases right now. US really have a hard time recovering from their economy because of the protests that are happening in their country. In India, the use of cryptocurrency are being prohibited again because they don't see it as an effective tool to recover economically because of their authority.

Probably, this pandemic will lasts longer.
I hope that it will end as soon as possible. I've read some good news about this miracle pill/medicine.



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June 17, 2020, 01:00:23 PM
 #25

Some countries economy are constant and some economy rise and fall, from my understanding I suggest that is because of government,and population of the country. What is your suggestion
Yes the population of a country can in some ways affect the economy, and that’s when there is increased famine.
Having famine can affect the economy in lots of ways I guess. As for the government, I think they also play their own part in ruining an economy. If they are not doing the right things they are meant to do the economy of that country will be falling.

The way (or one of the ways) that the government can make their economy to fall is through what is called fiscal austerity. Fiscal is the government’s budget and the word I first mentioned has to do with when government decides to cut budgets.
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June 17, 2020, 02:12:05 PM
 #26

Some countries economy are constant and some economy rise and fall, from my understanding I suggest that is because of government,and population of the country. What is your suggestion
With something as complex as the economy it is very difficult to come to a simple answer which is why when there is an economic crisis and people want to know what it is causing there are hundreds of explanations about why it is happening, one of the simpler explanations is that this is just the way the system is designed, there is something called the boom and bust cycle, as you may guess during the boom cycle there is easy credit for anyone and plenty of jobs because of it but then after some time a bust cycle emerges as people use that easy credit for unnecessary stuff and jobs are lost and credit is more difficult to get.

A reductionist answer would be that the cause of the rise and fall of the economies comes from policies regarding how credit is given and the monetary policies of governments.

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June 17, 2020, 05:32:22 PM
 #27

Population is also a factor of the recession that occurs and there are many other factors which of course all involve many sectors such as employment, tourist attractions and many more which of course there will always be ups and downs in the economy because such things can also occur depending on the season, so the ups and downs of the economy are something that usually happens but if it is related to the crisis that occurs because of a pandemic then of course it is something different.

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June 17, 2020, 05:58:21 PM
 #28

The way (or one of the ways) that the government can make their economy to fall is through what is called fiscal austerity. Fiscal is the government’s budget and the word I first mentioned has to do with when government decides to cut budgets.

You are either wrong on this or that you are not good at describing this. In easier term , Fiscal Austerity is a way for the goverment to get more money to pay their debt through some option such as raising tax or cutting down their budget on few non important things.

By doing this, the country might be hurting themselves in a longer term and their economy might keep falling until certain period of time. Increasing taxes will only bring more harm to their citizen


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June 17, 2020, 07:22:06 PM
 #29

I would say the bribes are the biggest reason. Now you might question how could bribing change the economy so much? Well simply the rich companies bribe the powerful people and whenever those rich peoples business is not going that well you see that powerful people manage to find a way to recover it for them. So, bribes is the best way to make the companies go up and down all the time instead of just down.

If there was no bribing, if there was no bail outs, if there was no economical packages that helps big corporations we wouldn't be in this mess. Companies who do not get help would have two options, either run the company properly without too much risks and troubles or just declare bankruptcy. Since, it is not like that they just risk it all to earn as max as they can and either they succeed which is rise or they fail which is fall.

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June 18, 2020, 01:21:47 PM
 #30

I would say the bribes are the biggest reason.

I agreed with you that bribing is the major reason why some economy are not constant.
And government is another major reason too why their is not flow of economy due to their competence in office to strategies things that will benefit masses.
I stand fully to support the motion that bribery is what brings down economy due to mismanagement.

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June 18, 2020, 03:59:50 PM
 #31

I think it all depends on the government of the country, on the general ideology. Let's look at Norway. Stable stable growth. Or Nepal - stably bad. Well, Norway has oil. But Russia also has oil. In which country is the economic situation better?

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June 18, 2020, 04:08:51 PM
 #32

Some countries economy are constant and some economy rise and fall, from my understanding I suggest that is because of government,and population of the country. What is your suggestion

The main reason why some of the economies are growing gradually while others are prone to volatility is 'Demography'.

If there is a huge difference between the per capita income of the richest 10% and the poorest 10% of the population then economy is more inclined to inflation. Rich will invest/spend which in turn generate more cash flow in the economy, thus per unit value of money will fall. However, this money will not reach poor segments. So poor will become poorer while rich will become richer. Such economy will rise dynamically during boom period but fall miserably during recession.

However, if the standard of living of the people in economy is at par i.e. per capital income of whole population is within short range then economy will be inflation-proofed most of the time. The spending/investment will be distributed equally among the factors of production. So any inflation could be countered by the increased incomes.
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June 19, 2020, 04:06:24 PM
 #33

Economic growth means there is an increase in national output and national income economic growth is caused by two main factors. Economy is measured by gross domestic product. That's the dollar value of everything produced in the last year. recession include high interest rates, reduced consumer confidence, and reduced real wages.
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June 19, 2020, 04:12:24 PM
 #34

The governments, the economy itself, and countries' economic status. And there are many other factors which can easily affect the economy, too, such as the COVID-19, the United States presidential election, etc..
In some countries, such as mine, the government controls everything, and therefore, its hard to make a big crash on the economy. However, it also blocks the country from going up rapidly.

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June 19, 2020, 05:27:14 PM
 #35

There cannot be just one or two factors to be assumed on influencing on a country's economy; it should be uncountable. But, what I feel is policy of a government got more degree on deciding the direction of economy. If the policies are supportive to generate more jobs and more production and also allowing easy and simple procedures for businesses to be started in corruption-free way then that country's economy could be built stronger over the time. When politicians are not supportive of creating jobs then that will end up in falling down of economy.

When governments proactively set policies on encouraging its people to start new business toward more exports after fulfilling their domestic needs then they will collect more foreign exchange reserves which must be one of the prime factor on deciding the value of one country's high money value. High money value is an enough measurement of stronger economy of a country.
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June 19, 2020, 06:13:15 PM
 #36

Some countries economy are constant and some economy rise and fall, from my understanding I suggest that is because of government,and population of the country. What is your suggestion
This is quite a broad topic and you will need a lot of prior knowledge about how basic economics work.
No economy in the world is constant. The economy falls and rises,  but in the long run, every country expects to have a constant growth of the economy.
The economy can rise or fall due to various reason. A countries economy can start falling if a bad monetary or  fiscal policy takes place. Lets say the central bank decided to increase the interest rate (monetary policy) for any reason without proper analyzing the other parallel outcome. We will see that people started taking less loans from the bank, and those that have cash started to deposit more money to the bank. This will cause the aggregate demand to fall (due to people willing to spend less and save more), thus less production and then eventually fall of GDP (this is just an example. Usually monetary policies help to recover from downfall, but bad decisions have consequences). Now lets say a war is going on and the government decided to spend most of everything in military (fiscal policy), the countries economy will eventually fall.
Hope you now you understand how this works.

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June 19, 2020, 09:11:09 PM
 #37

It can also stem from other countries' economies, as some countries are dependent on the other for some things, and if that certain country have a lackluster economy and cannot provide what the other country needs, the latter would also suffer. If you try and read the main causes for the rise and fall of economies, you can always see that it has something to do with huge banks or other countries doing business with the other and then failing miserably. But the volatility in a country's economy is not limited to what I've just said--it's a broad topic that requires lots of consideration into different forces at play in the stage.

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June 19, 2020, 09:52:54 PM
 #38

I think it all depends on the government of the country, on the general ideology. Let's look at Norway. Stable stable growth. Or Nepal - stably bad. Well, Norway has oil. But Russia also has oil. In which country is the economic situation better?

Apart from what countries have, it also depends on those who controls those resources or means of production. That is the leadership of the country or the decision takers. If the people's hands are corrupt, they may still not do fine despite the huge resources the country has.
I must agree. The people and the government should work hand in hand so that the economy of such country will prosper. Big factor of which is also the leadership of the officials in the government. If they are capable with their different posistions, they will be able to produce more projects for the economy which will be totally benefited also by the citizens living in it. More projects means more benefits for the people.

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June 20, 2020, 04:57:26 AM
 #39

I must agree. The people and the government should work hand in hand so that the economy of such country will prosper. Big factor of which is also the leadership of the officials in the government. If they are capable with their different posistions, they will be able to produce more projects for the economy which will be totally benefited also by the citizens living in it. More projects means more benefits for the people.

I think at this time the international political and economic constellation is more determining the ups and downs of a country's economy. Because the world economic barometer is still the US due to the dominance of the dollar over world trade traffic. The movement of the economic hegemon and also the policies of countries with high trade flows such as China are increasingly narrowing the strategic choices that can be taken by developing countries and poor countries which incidentally have a high dependence on these countries.

Managing the country in the global arena is very complex and requires high analytical skills from officials in managing conflicts and managing natural resources and human resources in order to reduce dependence on other countries and can even make other countries depend on our country.

China is a smart country, although sometimes manipulative. During this time they are countries that have high energy dependency to finance their manufacturing, but with lobbying and its OBOR strategy in Southeast Asian countries, China is heading for an energy self-sufficient country by becoming the world's battery manufacturing center, and even many countries in Southeast Asia that control raw material for the battery industry it failed to capture the moment of even loss of profit and only became a place of exploitation because China has already created a system that ensures China hegemony the battery manufacturing up to its raw material hegemony.

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June 20, 2020, 07:49:25 AM
 #40

I think it all depends on the government of the country, on the general ideology. Let's look at Norway. Stable stable growth. Or Nepal - stably bad. Well, Norway has oil. But Russia also has oil. In which country is the economic situation better?

Apart from what countries have, it also depends on those who controls those resources or means of production. That is the leadership of the country or the decision takers. If the people's hands are corrupt, they may still not do fine despite the huge resources the country has.

Corruption is the biggest problem of our country but apart from corruption epidemics and conflicts are responsible for the rise and fall of the economy When these effects occur business trade production and everything else stops which hinders the economy. But the government is responsible for all this

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