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Author Topic: What is the cause of economy rise and fall.  (Read 1417 times)
proscratcher
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September 06, 2020, 03:20:24 AM
 #101

Economic growth creates more profit for businesses. As a result, stock prices rise. That gives companies capital to invest and hire more employees. As more jobs are created, incomes rise. Consumers have more money to buy additional products and services. Purchases drive higher economic growth. For this reason, all countries want positive economic growth. This makes economic growth the most-watched economic indicator.
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October 03, 2020, 04:24:09 PM
 #102

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 all depends on what is in the country. These can be resources, first of all, these are always resources. They can be physical, such as oil, gas, and so on. Or they may be intelligent.
The most developed countries are rich in both. Look at the United States, the whole world depends to some extent on them.

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October 03, 2020, 06:10:54 PM
 #103

The cause of economy rise and fall are many but I will like to  just mention few here:
1) Bad environment
2) Bad leader
3)Bad government
1) Bad environment: some times people blame the government for rise and fall of the economy not knowing that their bad environment is the cause of it.Every investors wante to invest in safe and good environment to make profit.
2) Bad leader: when the economy of a country  is rise and fall bad leaders are the cause of it. Bad leader plans is to care for their family only than to care for the stable and steady economy of the people.
3) Bad government: when the government fail to invest and improve the economy of a community can lead to rise and fall because the government cherish corruption than to invest on time for the betterment of the citizens.

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October 03, 2020, 10:43:45 PM
 #104

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 all depends on what is in the country. These can be resources, first of all, these are always resources. They can be physical, such as oil, gas, and so on. Or they may be intelligent.
The most developed countries are rich in both. Look at the United States, the whole world depends to some extent on them.

Resources with good governance.

Even with having a rich resources if they don't know how to handle it, the economy of a certain country will fail to rise. Good governance is really helpful for the economic growth to have a better decision making, development, etc., using their own resources that will boost the economy of the country.


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October 03, 2020, 11:34:23 PM
 #105

The economy rises and falls due to various factors.
A more recent example is the one we live when it was declared that the world was suffering from a pandemic. The prices of oil, the stock market, bitcoin and cryptocurrencies fell, the uncertainty, the blockage of economic activities all together makes the economy move slowly.
In times of a rising economy, it is due to the fact that there are good market policies to satisfy the supply and demand of the goods and services of nations.

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October 07, 2020, 07:38:41 AM
 #106

Factors that cause a recession include high interest rates, reduced consumer confidence, and reduced real wages. Effects of a recession include a slump in the stock market, an increase in unemployment, and increases in the national debt.

The number of unemployed increases when the economy of a country is disrupted the economy depends on the per capita income of a country. The per capita income has accumulated due to the epidemic which has caused various crises including unemployment as the economy has suffered.
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October 07, 2020, 08:56:52 AM
 #107

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
In my country, economic growth is also very unstable and I think one of the causes is production and expenditure. As a developing country, we depend on developed countries that have been carrying out large-scale import activities. If there is a crisis experienced by Developed countries that help us, it will greatly affect the demand for several commodities so that it causes the economy to decline.

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October 07, 2020, 09:41:01 AM
 #108

Factors that cause a recession include high interest rates, reduced consumer confidence, and reduced real wages. Effects of a recession include a slump in the stock market, an increase in unemployment, and increases in the national debt.
I conclude that the factors that cause the economy in a country to be unstable are the planning used is not considered mature enough. In the sense of not thinking about alternatives A, B, C or D. Because if you do not anticipate the inhibiting factors, of course when you are faced with an impossible condition, you must be able to find a gap to keep going. Then, the development is not right on target. If more and more strategic developments are on target, of course, the acceleration of economic growth, especially in the regions, can be boosted through the types of micro, small and medium enterprises. and one more thing is the decreasing purchasing power of people for a product who do not understand how to manage monthly finances. This decrease in consumption and purchasing power occurs for those with low incomes. Although the wages of labourers and construction workers have increased, however, the inflation has not been able to control the prices of necessities. So that the prices of necessities go up and in the end, their salaries are only enough to buy primary necessities. This is what causes the property sector, food and beverage retail to experience a drastic decline in sales.
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October 07, 2020, 04:24:57 PM
 #109

The economy rises and falls due to various factors.
A more recent example is the one we live when it was declared that the world was suffering from a pandemic. The prices of oil, the stock market, bitcoin and cryptocurrencies fell, the uncertainty, the blockage of economic activities all together makes the economy move slowly.
In times of a rising economy, it is due to the fact that there are good market policies to satisfy the supply and demand of the goods and services of nations.
But the strong economies like China recovered so well that it makes you wonder if having flexibility among all nations could have reduced the impact of corona virus. Because of the poor planning and terrible structural planning by various countries the corona virus is looking even more dangerous than it should have.

A better approach and the vision to fight the virus rather than hiding might have saved the economy from dropping because locking people in their house was important but not necessary as they could have increased the testing and made managed more patients by allowing more patients and increasing the beds.

Hiding from a problem and locking yourself in will only prevent you but if you fight with it, you either win or loose. Think about it deeply and you will understand my message.

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October 07, 2020, 06:44:04 PM
 #110

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, I agree with your thoughts. But I want to add one more thing that the economy can also be affected by nature. For example, in Dubai, it is a very small country and a very small population, but it owns one of the largest oil fields in the world. Since then, Dubai has become very rich. otherwise, it is due to natural disasters or epidemics and need not for example, you also understand how big its impact is.

I do agree with the both of you and I just want to add that not do government policies affect the economy but also the people that constitute the government. If there are right people to lead a country, it helps to boost their economy by the enforcements they make.
Secondly, pandemic such as the Corona Virus which is currently in the world and the Ebola Outbreak that happened in Africa years ago can also crumble the economy of a country if not properly managed.
Thirdly, the natural resources of a country, if properly utilized by the government, can help boost the economy of such country.

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October 08, 2020, 09:26:59 AM
 #111

The economy rises and falls due to various factors.
A more recent example is the one we live when it was declared that the world was suffering from a pandemic. The prices of oil, the stock market, bitcoin and cryptocurrencies fell, the uncertainty, the blockage of economic activities all together makes the economy move slowly.
In times of a rising economy, it is due to the fact that there are good market policies to satisfy the supply and demand of the goods and services of nations.
But the strong economies like China recovered so well that it makes you wonder if having flexibility among all nations could have reduced the impact of corona virus. Because of the poor planning and terrible structural planning by various countries the corona virus is looking even more dangerous than it should have.

A better approach and the vision to fight the virus rather than hiding might have saved the economy from dropping because locking people in their house was important but not necessary as they could have increased the testing and made managed more patients by allowing more patients and increasing the beds.

Hiding from a problem and locking yourself in will only prevent you but if you fight with it, you either win or loose. Think about it deeply and you will understand my message.
Quarantine is the most effective way of fighting this virus and I don't understand why you have said it's not necessary in fact it really prevent the virus from spreading more because few people are just going out and those people are the ones who work for their family, to provide them the things they need specially they're all in their houses most of the time, quarantine doesn't mean we were hiding from the virus, it is a very effective strategy to fight the virus, do you wonder why it is implemented all around the world, because it is the right move for us now, "Hiding/quarantine is also a way of fighting the virus", making all people tested for the virus is not a good thing at all, people who have symptoms are only the ones being tested or the people ho have interaction with a person who has symptoms of the virus, imagine having majority of people in your country tested, that will need a lot of funds for the things needed for the testing itself and most likely your government will take loans and that will make the road ahead of you very rough for the government will find ways to get more funds, increasing tax, adding tax to things that don't have tax and it will be bad for economy in the long run.
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October 08, 2020, 11:41:19 AM
 #112

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, I agree with your thoughts. But I want to add one more thing that the economy can also be affected by nature. For example, in Dubai, it is a very small country and a very small population, but it owns one of the largest oil fields in the world. Since then, Dubai has become very rich. otherwise, it is due to natural disasters or epidemics and need not for example, you also understand how big its impact is.

I do agree with the both of you and I just want to add that not do government policies affect the economy but also the people that constitute the government. If there are right people to lead a country, it helps to boost their economy by the enforcements they make.
Secondly, pandemic such as the Corona Virus which is currently in the world and the Ebola Outbreak that happened in Africa years ago can also crumble the economy of a country if not properly managed.
Thirdly, the natural resources of a country, if properly utilized by the government, can help boost the economy of such country.

Yeah, it's obvious that resources of a country is were each of the country economy originated and if not properly handled by the management of the country,automatically the economy of such country will fall totally, so looking at the falling of countries economy from another perspective it seems that its caused by Lack's of diversifying resources or economy.

Yeah, it's clear that massive disease in a country can cause stability or downfall of economy such as corona virus and other numerous disease's.

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October 08, 2020, 12:08:07 PM
 #113

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, I agree with your thoughts. But I want to add one more thing that the economy can also be affected by nature. For example, in Dubai, it is a very small country and a very small population, but it owns one of the largest oil fields in the world. Since then, Dubai has become very rich. otherwise, it is due to natural disasters or epidemics and need not for example, you also understand how big its impact is.

I do agree with the both of you and I just want to add that not do government policies affect the economy but also the people that constitute the government. If there are right people to lead a country, it helps to boost their economy by the enforcements they make.
Secondly, pandemic such as the Corona Virus which is currently in the world and the Ebola Outbreak that happened in Africa years ago can also crumble the economy of a country if not properly managed.
Thirdly, the natural resources of a country, if properly utilized by the government, can help boost the economy of such country.

Yeah, it's obvious that resources of a country is were each of the country economy originated and if not properly handled by the management of the country,automatically the economy of such country will fall totally, so looking at the falling of countries economy from another perspective it seems that its caused by Lack's of diversifying resources or economy.

Yeah, it's clear that massive disease in a country can cause stability or downfall of economy such as corona virus and other numerous disease's.

What about the technology factor, have you forgotten that countries with technology will grow faster?  perhaps technology is also the cause of economic growth or decline.  If the government and society do not have technology in their country.  I am sure the country will continue to be underdeveloped.
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October 08, 2020, 12:16:07 PM
 #114

There can be many reason like the political reason and sanctions. But, the main reason for any economy in any country to rise or fall is the people. Even if a very bad fundamental news happens or governments doing something wrong, in the last place these are people chose to buy or sell stuff or how the react to the prices. But what is the reason of the people reaction? The reason is deep inside the educational system. If they really get educated in school and get familiar with economy, they will understand what is good or bad for the economy of their counter. So if you ask me, I would say education is the main and most important reason. But unfortunately, many countries,even developed countries won't pay attention about this important factor in schools.

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shamimal93
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October 08, 2020, 08:05:54 PM
 #115

There are many reasons for economic ups and downs.  One of the causes of economic decline is famine, heavy rains, droughts and various natural calamities such as cyclones, tidal waves and fires.  And at the root of economic growth are the export of goods produced in the country, development in various industries etc.

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October 09, 2020, 11:49:36 AM
 #116

1) Bad environment
But who is responsible for that bad environment? I agree that people are responsible like you said but the government has to make policies such that the environment cannot be deteriorated further and what damage has been done must be regained slowly.

The best point you made is actually bad leaders because a bad leader is like the root of the tree having a parasite and now no matter how much water is given to the tree the roots are always going to be weak. Similarly the worst leader people pick for themselves the more harm he will do to the economy.

I heard one wise statement from someone: A un-educated leader will only cost short term losses but an educated leader who has the wrong motive might burn the whole country so the government and the leader should have the right mindset at the very least.
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October 09, 2020, 12:01:21 PM
 #117


Yeah, it's obvious that resources of a country is were each of the country economy originated and if not properly handled by the management of the country,automatically the economy of such country will fall totally, so looking at the falling of countries economy from another perspective it seems that its caused by Lack's of diversifying resources or economy.

Yeah, it's clear that massive disease in a country can cause stability or downfall of economy such as corona virus and other numerous disease's.

What about the technology factor, have you forgotten that countries with technology will grow faster?  perhaps technology is also the cause of economic growth or decline.  If the government and society do not have technology in their country.  I am sure the country will continue to be underdeveloped.
Actually, many different factors affecting a country's economy. In my opinion, technology is not the most important element that can drive dramatically the economy. Governments are the ones need to in charge of everything surrounding their country. We can not expect a country to have a strong development or technology if their leaders are totally jack-ass

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October 11, 2020, 08:22:33 AM
 #118

1) Bad environment
But who is responsible for that bad environment? I agree that people are responsible like you said but the government has to make policies such that the environment cannot be deteriorated further and what damage has been done must be regained slowly.

The best point you made is actually bad leaders because a bad leader is like the root of the tree having a parasite and now no matter how much water is given to the tree the roots are always going to be weak. Similarly the worst leader people pick for themselves the more harm he will do to the economy.

I heard one wise statement from someone: A un-educated leader will only cost short term losses but an educated leader who has the wrong motive might burn the whole country so the government and the leader should have the right mindset at the very least.

It's all up to the government. If they want they can decimate the economy.
Here in my country government regularly increment the costs, as of late they increment the petroleum cost which is very upset, low standard families.
Those who are paying low salaries are unable to uphold their families due to the high cost of items and foods.
There's nothing wrong with us it's all up to the government and he should take care of their peoples.
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October 11, 2020, 08:47:01 AM
 #119

Some countries economy are constant and some economy rise and fall, from my understanding I suggest that is because of the government, and population of the country. What is your suggestion
Both population and government make the economy rise and fall, the leadership of the government will decide their economic status and if their population is following all of the rules of the country. The relationship of the country to other country is also good for having a good economy, if your country is globalized then for sure your economy is high as well because of so many good transactions to other countries, good export and import are needed to gain strong globalization which result of a good economy.

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October 11, 2020, 09:02:29 AM
 #120

There is a lot of impact on the economy rises and one of these are the:
1. Import
2. Export
Also, we experience this recently on the fiat currency there are a lot of economic GDP falls down because of this pandemic the shortage of the supply comes down and also the transactions from different places temporary close or prevented due to this pandemic to become safe all of the people.

Some countries economy are constant and some economy rise and fall, from my understanding I suggest that is because of the government, and population of the country. What is your suggestion
Both population and government make the economy rise and fall, the leadership of the government will decide their economic status and if their population is following all of the rules of the country. The relationship of the country to other country is also good for having a good economy, if your country is globalized then for sure your economy is high as well because of so many good transactions to other countries, good export and import are needed to gain strong globalization which result of a good economy.

Also, there is an impact too how does the government manage all of the people and the whole community and country if they did not manage this properly for sure there are a lot of shortage could possible happen, also the supply of the foods, and another kind of paraphernalia and sanitizing equipment. AFAIK there are rules applied that only limited to three (3) items only per buyer in malls.

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