What is the cause of economy rise and fall. - page 2.

Maroons

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Quote from: redsun114 on October 07, 2020, 11:24:57 AM

Quote from: verita1 on October 03, 2020, 06:34:23 PM

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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Quote from: Krabby on June 16, 2020, 04:38:23 AM

Quote from: GeorgeJohn on June 16, 2020, 02:27:38 AM

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.

redsun114

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Quote from: verita1 on October 03, 2020, 06:34:23 PM

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.

zeingrind777

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Quote from: aiguy on September 05, 2020, 10:48:33 AM

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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Quote from: GeorgeJohn on June 16, 2020, 02:27:38 AM

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.

Salauddin1994

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Quote from: aiguy on September 05, 2020, 10:48:33 AM

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.

verita1

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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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Quote from: TrevorS on October 03, 2020, 11:24:09 AM

Quote from: GeorgeJohn on June 16, 2020, 02:27:38 AM

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.

proTECH77

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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.

TrevorS

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Quote from: GeorgeJohn on June 16, 2020, 02:27:38 AM

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.

proscratcher

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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.

aiguy

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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.

bits4books

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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.

perfect999

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Quote from: ChiBitCTy on July 20, 2020, 12:18:03 PM

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.

add1ct3dd

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Quote from: jostorres on July 29, 2020, 04:38:30 PM

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.

jostorres

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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.

Eugenar

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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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Quote from: n0ne on July 28, 2020, 10:35:37 AM

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.

Axelseseclevz

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Quote from: GeorgeJohn on June 16, 2020, 02:27:38 AM

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.

n0ne

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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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