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Author Topic: What is the cause of economy rise and fall.  (Read 1417 times)
MCobian
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June 20, 2020, 08:15:03 AM
 #41

Factors that cause the economy rise and fall is the income generated by its population. Because the greater the income of the population,
the country will prosper. Because the country can get a big tax, so the economy can go up. Whereas if the population has a low income
and a high unemployment rate, the tax revenue generated by the state will be low too. Then no wonder if the economy falls.

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June 20, 2020, 09:20:11 AM
 #42

There are a lot of reason on the economic market movement or increasing and fall down of a single country, today we experience an unexpected event happens because of the pandemic outbreak which is the coronavirus and most of the country falls down their GDP or the gross domestic product which is common on the third world country if the country is base on trading like the import and export of the products it may affect a lot on this pandemic because of some of the country today prohibited going outside and make a mass gathering also if they stop the transport of the supplies many people getting affected.

Like here on the Philippines, most of the works and businesses came back because it is a huge loses on them if they don't bring the business because they don't have enough money and they do want to become dependent on the government we aim for the money to buy a lot of things to survive this pandemic outbreak and we are looking forward on it that they will make a cure immediately.

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June 20, 2020, 05:40:37 PM
 #43

I must agree. The people and the government should work hand in hand so that the economy of such country will prosper.

@kasabus I agreed with you that people work directly with government it will a big help to the country in order to elevate their economy.
The work is not base on government alone neither individuals,
Government will strategies in order to work with people so that their economy will remain constant.
Because without people no government and without government no rules and regulations in the country no individuals will work in  accordance with government. So both parties has to work hand in hand to activates their economy and make it to accelerating constantly.

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June 23, 2020, 04:24:34 PM
 #44

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.
Without a doubt this is a big problem, in a real free market economy businesses compete against each other evenly and the ones that are the best at managing their resources should be the winners, but we know this is not the case, governments can change the rules of the game in any way they want and they can benefit one company to the detriment of another one, this eventually creates an environment in which it does not matter how you run your company but who you can bribe and that is never good for the free market economy.

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July 10, 2020, 03:18:36 PM
 #45

Without a doubt this is a big problem, in a real free market economy businesses compete against each other evenly and the ones that are the best at managing their resources should be the winners, but we know this is not the case, governments can change the rules of the game in any way they want and they can benefit one company to the detriment of another one, this eventually creates an environment in which it does not matter how you run your company but who you can bribe and that is never good for the free market economy.

The culture of bribery should not be contained in a pure free market, and a culture of bribery is not included in the free market support values. Bribery is giving anything to another party to get a decision in a bad way and will bear fruit in the economic and moral deterioration of individuals and nations. The economic problems of a country are often caused by human error, one of which is caused by acts of corruption and poor administration, where bribery is included. The act of bribery will cause a high-cost economy in the business world so that it is forced to raise the selling price at normal profit levels. Prices will experience distortion due to cost components that should not appear, so the selling price to consumers does not reflect the true value of the resources of the production process.

The existence of bribery costs results in an inefficient allocation of resources, and damages productivity levels. Until finally damage the economy in general and very detrimental to the wider community. The accumulation of a high-cost economy in the business world, the deteriorating economy, and the spread of crime in the business world and in various social strata of society will be felt by all citizens, both those involved in bribery or not. The nation's credibility has also fallen into the eyes of the international community, it can be seen from the ranking of the implementation of Good Corporate Governance (GCG) and the level of corruption that is widely made by various international institutions.

If there are those who neglect moral and ethical values in economic activities, they will automatically spread domino effects such as injustice, income inequality, damage to resources and the environment and damage to the economy in general, thus potentially resulting in various crimes both in the business world and society that will lead to the decline of human civilization.

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July 10, 2020, 03:26:49 PM
 #46

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
If we are talking about rise and fall of economy during this exact year - it depends heavily on two factors:
1. structure of economy (US economy is based on high liquidity thats why they can't afford being in quarantine anymore, Switzerland economy is way more passive so they didn't feel the same as US)
2. decisions of government (if one country doesn't want to start a lockdown because they don't feel it as necessity - they are going to lose a lot of people and wealth only because of their decision)
There are some governments who did right decisions, but people simply ignored them - thats whole another deal. It could only happen with developing country, so economy of such country is not as dependent of covid as other countries
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July 10, 2020, 05:34:33 PM
 #47

true government policies are required to strive for the welfare of the people through economic policies that protect the people's economy. However, government policies do not always produce prosperity for the people, so there are times when the government is wrong in taking economic policies ..?
for example my knowledge ..?
- for example, importing excessive food, eliminating regulations related to environmental sustainability, eliminating luxury tax.
mistakes in taking economic policy will have an impact on the implementation of the wrong strategy as well. instead of achieving skyrocketing economic growth, it has actually declined

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July 10, 2020, 07:15:37 PM
 #48

Earth's Flow is the cause of economic ups and downs. For example, the profit and trade of the common man is higher in the agricultural sector. In a word, the income of the common man increases and whenever the income of the common man increases, there will be more exchange. In this case it creates resources for our country.

But in this present situation, the economic condition of our Bangladesh is very bad because of Corona. Every thing from the country's business to jobs are being matched and even the agriculture sector is being affected. There is no business today, There is no good jobdue to which the whole thing has come to a standstill.

For this reason, now that Bangladesh Economy is collapsing, it will not be the same one day or another, no one can say exactly when it will be right.

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July 11, 2020, 04:09:59 PM
 #49

In my opinion, a country's economy and an individual's economy are not having big differences. I mean both are influenced by same set of factors hence to understand better about what are causing economy of a country to rise and fall, just studying how we are getting better financial status is more than enough. A man with regular job must be having well economic status compared to a service provider who is depending on demand and many other factors for getting opportunity to get work and to get wages.

Similarly, if a country is having their own production and having surplus products for exporting then definitely they will be having good economy. The countries who are all not having sufficient agricultural product are severely affected by economic crisis unless otherwise they are technically advanced or having some other products to export.

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July 11, 2020, 04:48:34 PM
 #50

A country's resources and how productively a country using it makes their economy stronger or weaker.More population will be a factor on national GDP'ss average loss but if a country has more work force then they can make everything possible like what China has been doing for the last ten or twenty years to become one of the super power of this world.









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July 11, 2020, 06:38:28 PM
 #51

The economy of a country cannot be constant, there will always be an influence of time and season on the economy, moreso the economy encompasses different sectors, the only thing is could be under good regulation. A country does not have all , the process of exchange,import and export with other country for certain product will definitely have an influence in her economy. Those country you claim to have a rise and fall in their economy only have a wide range of regulation inefficiency.
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July 12, 2020, 04:57:56 AM
 #52

as far as I know is, the price of their currency is based on gold-backed up, and the more cash in circulation, the more unstable the economy in the country. however, lately, the calculation of gold with cash in circulation is not very suitable, so it seems that the current economic quality in a country is based on the value of the entrepreneurs in it.

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July 12, 2020, 05:41:56 AM
 #53

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.

We can say that it is the steam of it.

It is not really the reason why the economy is falling or rising, the root of it is these people themselves that just run for money or the plan to corrupt and not really to serve the country. We can also put the people in it since they are not really taking their right to vote seriously since usually it will be the democracy that corruption happens.

I am not really against the government in our country, it is just that now, just now, the citizens of the country are seeing the uncompetitiveness of the people they vote and now they are mad because they are not doing their job, which is their fault to start with.
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July 12, 2020, 06:14:12 AM
 #54

Similarly, if a country is having their own production and having surplus products for exporting then definitely they will be having good economy. The countries who are all not having sufficient agricultural product are severely affected by economic crisis unless otherwise they are technically advanced or having some other products to export.

In order for the country to continue to rise and minimize the risk of fall is to have national security by synergizing between military security, food security, energy security, health security, and mental and spiritual security. If a country already has a clear state platform, it is easier to create a sustainable strategy even if the leaders of the country change. With national resilience, a truly sovereign country has bargaining power and has more room for mobility, not just a limited choice between pro-US choices or leaning towards China, pro-free markets or pro-state capitalism.

Over reliance on exports without a foundation of local consumption is disastrous, because it means imports are also high. Relying on exports of one type of commodity is a disaster, Venezuela is an example, the economy falls when oil prices fall and, unfortunately, high import figures to meet domestic needs, causing budget deficits, inflation and the erosion of foreign reserves.

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July 12, 2020, 07:12:40 AM
 #55

Demand and supply. Economic growth mostly occurs due to having increased wages, increased employment rate, increased resources, improvement in technology, etc. Countries have constant development due to them having concentrated their resources on developing their domestic products, instead of foreign trade. This doesn't mean that foreign trade is wrong, just that with foreign trade, the improvement of the country would solely be limited due to the fact that if foreign trade disappears, the country has its lifeline cut.

as far as I know is, the price of their currency is based on gold-backed up, and the more cash in circulation, the more unstable the economy in the country. however, lately, the calculation of gold with cash in circulation is not very suitable, so it seems that the current economic quality in a country is based on the value of the entrepreneurs in it.
As long as the release of cash was controlled properly, even if there were more types of fiat released, it'd only lead to economic growth. Ofc, too much of something is always bad, and too much release of fiat at a single instance without any proper reason could lead to inflation.

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July 12, 2020, 08:36:56 AM
 #56

As long as the release of cash was controlled properly, even if there were more types of fiat released, it'd only lead to economic growth. Ofc, too much of something is always bad, and too much release of fiat at a single instance without any proper reason could lead to inflation.
You mean improper policies of government for printing money will lead to inflation and then hyper inflation and the collapse of economy? Not just with printing money, if government is failing in making proper economy related regulation then collapse of their economy is inevitable. We have seen many countries without enough manpower and natural resources have built their economy like super powered countries just because of good economic regulations and laws. So, if governments start caring about individuals' wealth by creating more job opportunities then their economy will get better over the time.

When governments fail carrying about their own people and their better economy? Only because of corruption. A corrupted government may not develop good economic policies but they might be allowing foreign investment for their own benefits which leads to suffering of their citizen.
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July 13, 2020, 11:27:39 PM
 #57

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 point is right. The state of the economy really depends on the people and the government. The ones who are responsible on what will be the economic state are those two since they are the ones composing the country. A good leadership will surely be followed by its people so it is in need a good leader in the government to be able to make people work to make the economy wealthy. But it must not be just the effort of the government because they were just the ones who were making and implementing the measures that can possibly make opportunities for its people to let them be productive. If the people are not cooperative, then the effort of the government to lead the country's economic state to the top will be nonsense because no man power will be working out to make such thing possible.

In short, it is in need for both people and the government to be cooperative with each other to make the economy rise. But there are also other factors that can affect the rise and fall of an economy and that is based on the capacity and capability of the country's resources because if the resources are limited, then a country's economy will be dependent on other country which will be beneficial to other one that is why it is essential for a country to be part of an alliance or simple the United Nations that will lift each other's up and in that case, the governments of each country are working on it.

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July 15, 2020, 07:26:25 PM
 #58

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
It’s not just something that can be caused by a particular factor, but I think a very bad government can lead to the downfall of a nation. When the supposed leaders are not doing what they are meant to do to lead the people to the right direction, then they are definitely heading for a fall.

Some politicians (or should I say all of them? Huh) are greedy to the core, and they can do anything once they are voted into power to make money before their leaving the office. These kind of people are the ones that are hurting a country, because they are not there to serve, but to destroy what’s left. And in the case of having a huge population, I think a country can still have a good economy despite having a huge population, so that doesn’t really matter (only problem might be there will be lots of poor people).
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July 16, 2020, 04:51:22 PM
 #59

One reason for the rise and fall of economic statuses of countries are their own market capability. The local market of a country can determine the economic growth and decay of a country. That is why countries with better utilization of resources got better economic status. It is quite shown that during the pandemic Global Trade is being used slowly which results in a fall in economic status of most countries relying on this kinds of transaction.

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July 17, 2020, 02:24:47 AM
 #60

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 that is true but government and people are just one of those factors affecting the rise and fall of the economy. Mostly the economy experience the rise and fall depending on the capability and capacity of the country itself. This concerns the national resources where raw materials that is for export and import came from and where the local products produced by the country also came from. There are common crisis that each and every country face depending on where they are located. Economic rise and fall is just a common happening which states that a country can be unstable at some point because of its limited capacity.

Government and its people must be coordinated to be able to keep its economy rising on which projects concerning how they can effectively use their resources must be managed to be able to maintain a good economic status.

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