Topic: What is the cause of economy rise and fall. - page 3. (Read 1445 times)

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.  

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

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.

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.

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.

They've needed to allocate funds to this part of the society as majorities
of those affected by this virus are poor.
Government needs to make sure shouldering the expenses to properly
taking care of this infected people.


Government doesn't have other choice most of those from third world
countries are suffering too much
In order to survive they needed to reopen businesses even risk still
high from their jurisdictions.

The main reason why the country's economy has fallen because a lot of countries have stopped their productivity due to lockdown that a lot of businesses and workers have lost their source of income; that is why the governments have fewer funds to support the need of hospitals. It is the reason why the lockdown was already lifted in other countries to resume productivity and recover back the economy of a nation.

Many factors cause an unstable economy, usually from government revenues and population. If the state tax income goes well, usually the economy
will be stable. Taxes obtained from the population must have a stable income. The government must be able to reduce unemployment rate, in order
to increase tax revenue. The reality is that there are so many unemployed people all over the world, due to the spread corona virus. So it is not
surprising that many economies rise and fall. Even for countries with high numbers infected with the corona virus its economy fell and did not rise
until now.

Economies are struggling most of the time especially on a third world country and this is because of so many circumstances and we have a pandemic right now which makes it more difficult to operate normally.

We have to think the others perspective, the trade war between US and China affects many countries and the continues war in middle east also gave an impact. The market will continue to rise and fall, let’s all ride the waves safely.

All economies of the country are in tune with the waves so the rise and fall and inevitably happens in a year it just comes on its own without realizing that it is already there.it is common sense that in this year when coronavirus impact the countries economy, all investment is affected.

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.