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Author Topic: What is the cause of economy rise and fall.  (Read 1215 times)
Febo
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July 20, 2020, 01:51:46 PM
 #81

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

No economies are constant. All economies also global economy have cycles. there are two king short term that last around 10 years. and long term economic cycle that last around 100 years. We dont even notice the big one, Short ones we do. Every time economic crisis start we are at start of new cycle. But the big cycle is most important and our future is not that bright here.

From your explanation, the nature of a crisis in a short cycle is a crisis that occurs by accident while the nature of a crisis in a long cycle is a crisis that occurs by design or is systemic and can already be predicted to occur. Long cycle per 100 years in my opinion due to the accumulation of problems and due to short-term solutions of the economic crisis in the short cycle and due to wrong economic governance by state officials, causing a vicious circle in the national economy and global economy.

In the recovery of a long cycle of crisis, there is usually a trigger to take extraordinary measures. This corona pandemic is a trigger created to take an extraordinary measure of the system.

No short cycle dont appears by accident. Both are systematic. Spend more then you produce and spend less then you produce because you are repaying old debts. It is not really hard to google what economic cycles are. https://www.investopedia.com/terms/e/economic-cycle.asp    But I watched one good video explaining big cycle. Let me try to find it. Wish me luck Smiley

Ha I found it: https://www.youtube.com/watch?v=sMRRz1J9RkI    Is 30 minutes, but worth of watching. And if you understand it you can fast forward a lot is easy to understood.

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azmirihaque
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July 20, 2020, 03:31:11 PM
 #82

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

Rise and fall is a common trend of every economy of the world. There is no economy in the world which goes only for rising or falling. There are different factors for this cause. The main factors are international business policy and relation, natural disaster, political situation, epidemic, govt. policy, export and import, economic and social condition, availability of factors of production etc. There are different stages of this business cycle of the economy like expansion, peak, recession, great depression etc. Economy is not stable, It always fluctuates within the cycle.  

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July 20, 2020, 05:18:03 PM
 #83

There's no such thing as a constant economy. Keep in mind that most all of our economies tend to be based of each other in some form or fashion. The US economy is as strong as they come, yet if we fall, all others will fall as well.  (hence proving they can't always be constant).  Sure the government has a large role but citizens do as well.  How well your countries citizens are educated plays a huge role as well.

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July 21, 2020, 04:14:19 PM
 #84

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 depends on every sector of the government that works for the betterness of the economy. Also there are many things to consider for the ups and down of the economy like the pandemic that caused a lot of troubles and problems not only to the people but also to the economy. War are also a factor that can affect the econonic situation of one country.

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July 22, 2020, 02:58:21 PM
Last edit: July 22, 2020, 06:56:56 PM by davinchi
 #85

There's no such thing as a constant economy. Keep in mind that most all of our economies tend to be based of each other in some form or fashion. The US economy is as strong as they come, yet if we fall, all others will fall as well.  (hence proving they can't always be constant).
After globalization, economic of a country is somehow depending on other countries'. Definitely a rise and fall of one country's economy will have impact on all other countries given that that country is having strong import and export relationship with other countries. In this modern era, no country will be existing without such relationship. For some need, they might need to depend on other country for example fuel and medical equipment.

How well your countries citizens are educated plays a huge role as well.
No. In my country, farmers are not educated but their productions are getting huge foreign reserve which is helping on building my country's economy in large scale. I guess by educated, you are referring people who are paying taxes. But, after taxation there are many other things which are actually contributing on a country's economy.

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July 22, 2020, 06:55:52 PM
 #86

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
What can cause an economy to rise and fall is loss of confidence by consumers; when consumers lose confidence they will stop demanding , and a decrease in demand means that there will be a fall. When Consumers stop investing in businesses in a particular country and when those businesses start to fall, the economy of the country starts to fall because consumers (or should I say investors?) are moving their demands elsewhere.

There are so many things that can lead to these loss of interest and confidence to happen and it can be things like deregulation, poor management, deflation, and the rest of them.

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July 25, 2020, 01:25:32 PM
 #87

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 fate or the state of the economy of a country not just rely on its government and people although those are one of the factors or main element for the country to achieve a growth but there are still other external factors that can affect why the economy falls.

Natural Resources can also be considered as one of the factors why an economy rise and fall because it is the limited element that a country must nourish to be able to make the economy rise since exported and imported goods and products came from raw materials coming from natural resources and being irresponsible to take care of it would lead to lack or shortage making the economy fall.

Educational State is also one to be considered because this boost up the intellectual capacity of the people to be productive to be able to create mass production to push the economy to rise. Lack of knowledge of the people can just lead them to dependency to the government which can lead to the economy to fall.

External Factors can also include natural calamity because it can affect people's lives and the natural resources that can result for the fall of the economy.

Good Governance is also one of the key to make the economy rise because management coming from those at the position will make everything in order which can make the economy rise. A government composed of corrupt officials can just drag the economy down.

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July 25, 2020, 02:45:33 PM
 #88

The main reason for the rise and fall of the economy is that when the per capita income of a country decreases or the population grows more than the food production, the rise and fall of the economy occurs. But now the epidemic has brought the country's economy down a lot. Due to the lockdown, business is closed, production is declining and the economy is being hampered by the impact of transactions.

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July 26, 2020, 10:21:23 PM
 #89

The rise and fall of the country's economy relies on the capacity of the country itself which varies on the amount of resources it have because it is the limited factor that a country certainly have that is why management of the resources is the key to be able to rise up the country's economy. Failure to take good care of the resources will surely result to fall.

Resources could be: Natural and the People because those are the main wealth of a country. This is where all the economic growth and development of the country relies because lack of those can partially lead to down fall of the economy.

The factors that can harm those resources stated above are basically those that can consume are make destruction to those resources which are Natural calamities/disaster and death the existence of the two make use for the resources to be affected and be limited in a country. Those that affects the resources of a country are the main reason why failure comes affecting the productivity of the resources to make the economy rise.

In simple words, the ones affecting the rise of the economy are the people and natural resources because they are the main wealth of the country since raw materials for production comes from natural resources and being processed by people and those products are being traded or imported to make earnings added to the economy of the country. The ones affecting those two are the external factors affecting why the economy experiences down fall.
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July 27, 2020, 03:00:30 PM
 #90

I guess there are a lot of factors for this, resources, population, distribution of wealth, job opportunities, and etc. The government plays a huge role in this since they are the one who utilizes taxes and gives directives to businesses as well as seeks other opportunities for the economy to grow.  With proper usage or allocation of tax for economic growth, I think even with the pandemic any country will recover fast.
Population is a big factor to be considering why economy falls. Due to overpopulated of a country the balanced between the economy should be taken seriously. This cause not only in the economy but also in the environment concern. This large population can also be an advantage if the government takes this in bright side. For the people, need to create  more job in order them to earn money so that more taxes will be deliver and the growth over the industry of the different sectors will be improve. The discovery of natural resources and switching to alternative energy which benefits us all in the long run which can boost the economy of the country.




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July 28, 2020, 12:40:13 PM
 #91

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 government and the population of that country do have a big influence on the ups and downs of the economy, but if we involve the existence of this pandemic, it is clear that exports and imports of trade from one country to another will greatly influence the ups and downs of the economy.
even most governments today have certain restrictions regarding access to export and import trade services
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July 28, 2020, 03:24:10 PM
 #92

I guess there are a lot of factors for this, resources, population, distribution of wealth, job opportunities, and etc. The government plays a huge role in this since they are the one who utilizes taxes and gives directives to businesses as well as seeks other opportunities for the economy to grow.  With proper usage or allocation of tax for economic growth, I think even with the pandemic any country will recover fast.
I believe if we leave the covid-19 pandemic aside there are many reasons still for economic downfall and crisis, I'll try and list a few.

1) Poor Cross-Border Relations and Trading: The most important aspect for any country is to have good export because that is the biggest source if income for any country. China have a great economy because they export almost everything and hardly import much themselves.

2) Frequent Governmental Changes: An example is Nepal how they never developed because they have a lot of governmental changes and there is absolutely no stability.

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July 28, 2020, 03:35:37 PM
 #93

Population matters much on a country's economy, but rather than population the productivity concerns big in my opinion. Just think of the United States Population. It stands third in terms of population, but the growth it has achieved is big. This means though the position is third in population, the difference between the second position is more than 1000 million. So USA has got higher productivity with the less population. This means governance too is a big factor in the economy growth of any country.
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July 28, 2020, 05:13:16 PM
 #94

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 cause why economy rise and fall are the problems in the government , unexpected pandemic, corruption, and many more. Also if thr population of the country keep on increasing and half of the population are among the lower class then it will affect also the situation of economy.

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July 29, 2020, 05:42:51 AM
 #95

Population matters much on a country's economy, but rather than population the productivity concerns big in my opinion. Just think of the United States Population. It stands third in terms of population, but the growth it has achieved is big. This means though the position is third in population, the difference between the second position is more than 1000 million. So USA has got higher productivity with the less population. This means governance too is a big factor in the economy growth of any country.
When people are asked this question they usually mention a lot of things as they cause of the rise and fall in economy of countries, but I usually point out to governance as the most important factor that contributes to the rise and fall of an economy.

The government can have serious impact; if the government is not doing the right thing it reflects immediately in the country’s economy and you will notice that it starts rising, but when they start doing the wrong thing, it becomes the opposite of that. There are things that the government are meant to do that will help economy’s growth.

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July 29, 2020, 09:00:03 AM
 #96

One thing that can make the economy fall and rise is the people, people are the ones who make the economy move, once they don't work then the company or the businesses won't work, it can cause bankrupt or failure, and as what we all know company and businesses make the economy move. That is why people keep on studying because they are the ones who will make their own country or economy rise over other countries.
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July 29, 2020, 09:38:30 PM
Merited by add1ct3dd (2)
 #97

I believe that economy is built to be something to go up and down, it can't always go up because at that point if we go up long enough without ever dropping the whole world would become billionaires and the system would just not work when there is nobody to work and everyone is rich, so inflation will happen and being a billionaire wouldn't mean anything, it would be like having 50 thousand dollars but you would have 50 billion instead, hence it can't work.

Well it can't always go down, I know it feels like it always goes down but not for the general nation, rich are getting richer, so it is not always going down neither to prevent just death by starvation level of being poor. All of these combined, it means that the economy has to go up sometimes and has to go down sometimes.

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add1ct3dd
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August 02, 2020, 02:43:28 PM
 #98

I believe that economy is built to be something to go up and down, it can't always go up because at that point if we go up long enough without ever dropping the whole world would become billionaires and the system would just not work when there is nobody to work and everyone is rich, so inflation will happen and being a billionaire wouldn't mean anything, it would be like having 50 thousand dollars but you would have 50 billion instead, hence it can't work.
While I agree that an economy cannot just rise while there are cases where economy just falls and keeps falling. There can be times when inflation becomes less than zero also called as deflation and while it is good if deflation occurs in a particular country because the value of the money increases but that also means the debts get even bigger. Suppose the value of 100 USD becomes worth 120 USD after deflation (as deflation increases the value of the currency) but that would cause serious problems to people under debt as they have to pay even higher now technically on their debts.

So, it is actually feasible that the economy rises and falls at certain points to maintain the economy and avoid any major issues. The US economy was so strong but now the pandemic have shaken them brutally, so no one can stay at the positive economic growth for lifetime.
perfect999
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August 02, 2020, 02:51:45 PM
 #99

There's no such thing as a constant economy. Keep in mind that most all of our economies tend to be based of each other in some form or fashion. The US economy is as strong as they come, yet if we fall, all others will fall as well.  (hence proving they can't always be constant).  Sure the government has a large role but citizens do as well.  How well your countries citizens are educated plays a huge role as well.
That's correct and the economy of US is strong because they have the the most advanced and efficient technology in the world. But that said now as corona virus had it's impact it was US who was most affected and that is because when any kind of emergency comes the economy that was moving the fastest is affected the most.

I believe having excessive tourism can also lift an economy like that's how Dubai got their economy built because they created multiple ways to attract tourism and a lot of startups are now based in Dubai because of their system.

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bits4books
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August 27, 2020, 05:46:35 AM
 #100

If we talk about the fall of the economy in isolation from the crisis (world) - all the reasons are in the abominable management of the state and resources. All sorts of dictators of banana republics and other castros turn their country into a garbage dump and then wonder why everything is so bad.
If we talk about world crises-then on the principle of dominoes. One falls and then all the others.
It all depends on the circumstances.



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