| Author | Economy? |
|---|
| What is meant by Economy Crisis? I mean money don't dissapear 0.o |
| it's good for you if you don't know. |
What does Economic Crisis mean for you personally? It is when you lose your job (or if you're young, your parents) and you are living with what you got in your savings or worse government support.
But seriously we are in a global recession and many many people have lost their jobs, had to declare bankruptcy, and have even lost their homes. |
Even if you don't lose your jobs, these are some signs of an economic crisis affecting you:
1. Inflation: Everything from your food to your clothes to your energy costs more.
2. Wage: Even if you still have your job, your boss needs you to take a pay cut.
3. Hours: Your boss wants you to work less.
4. Taxes: The government needs more money and will tax you more.
5. Services: The government cutting or reducing its services to you such as library, welfare programs, police, clean streets, etc.
6. Businesses: Whether you own one and have trouble getting business or the places you go to have problems staying open and needing to raise their prices. |
1. Inflation: Everything from your food to your clothes to your energy costs more.
also in game ;) |
#5
I blame the people printing money (or the cheaters with their multis). |
4.1 Actually inflation is rather a result of anti-cyclical countermeasures (if it's not the trigger, like the oil crisis) like increased state spending from new loans or even newly printed money. Economic crisis (as in recession) rather provoke deflation, because less money is available and industries need some time to cut production to match reduced demand and people are less eager spending the money the have left.
4.4 Increasing taxes in a crisis is pro-cyclical and intends to keep the state's income on the same level by taking more of a smaller whole, but that usually worsens the a crisis, so state's rather cut taxes *break for laughter* to give people more money to spend and help businesses to survive.
4.5 Same as 4 that's pro-cyclical. The anti-cyclical variant is increase spending by investing in infrastructure or education (but not too much unless you want the people who voted for you, get too smart to ever do it again) or start a war or two, depends pretty much where you set your priorities. |
#7
4.1 You are correct for normal recessions and depressions. But the current recession is turning into an inflationary one as a direct result of anti-recession measures.
4.4 True, but due to state income reductions and call for greater expenses during a recession they need to increase taxes to cover their deficit. Some states would not increase taxes because as you said it usually worsens the crisis, but others would disregard this in the face of growing pressure.
4.5 Investing in infrastructure and education is a great way to lower unemployment rate, but this isn't possible without getting into 4.4, 4.1, or borrowing against the future. War is also a great method to decrease unemployment rate, but I believe this is an even worse alternative to infrastructure and education investment because although it is more effective to decrease unemployment rate, it creates long term liabilities instead of creating long term assets. |
| #1 actually "money" can just disappear. i used to think the same thing, someone has to get rich while everyone else is losing money because money doesn't just vanish. but in reality, it does. watch this. http://www.youtube.com/watch?v=vVkFb26u9g8 this changed my view on the whole situation and made me want to stop using credit all together. it explains a lot about a lot. |
4.4 It really depends on the state and it's government, whether they're inclined to deficit spending or not, but usually states are more eager to help big enterprises than the common worker.
4.5 Never said war is my first choice and we're not even talking about real wars (with bombs falling on both sides), you just need a puny dictatorship and a reason (no, oil is not a reason) and off you are and usually it distracts from all the internal problems you may have. It's actually not meant to have a strong beneficial effect, it's meant to justify the military budget and just giving the armament manufacturers tax money for free would be too obvious and it might even open up an opportunity for your enterprises, think about all the reconstruction works, access to new resources and to new markets. |
4.5 I didn't mean to imply that war was your first choice. I was just stating my own opinion that war should be an extreme method used in the most dire of circumstances.
Actually oil is a good reason. Much better than most other reasons used throughout history such as not liking certain ethicities or religions.
Nod, real wars isn't necessary. Just gearing up for war can solve the unemployment problem.
Regardless of the reasons for war it does have a strong beneficial effect of jump starting economies and reducing unemployment. It worked wonders for Germany pre-WWII and to a lesser effect the US during WWII. |
#1
I mean money don't dissapear
Money like stock shares in a company are artifically created representations of value. Because of that the value of money can easily flucutate. Old money is routinely destroyed and new money is printed (not kept in any sort of ratio).
Even if money were the actual goods and services they represent, then the value of good and services can also flucutate. Let's say there's only wood and ore in the world. A shortage of ore would increase the value of ore and decrease the value of wood. Or in a depression maybe there's a shortage of both goods resulting in people unable to build buildings or buy arts. |
I blame the people printing money (or the cheaters with their multis)
however its the solution modern governments use to fight the present crisis |
#13
I believe that is stupid since inflationary measures started it all with the real estate market and the world crude oil market. Real recovery out of this mess won't happen for many years unlike what the optimists predict in 2nd half of 2009. |
| I just want to know how economy crisis happen... I mean money always with someone, we pay to retailers, retailers buy from producers, producers buy resources from resourcer, resourcers buy from retailers...how can economy crisis happen? |
I just want to know how economy crisis happen... I mean money always with someone, we pay to retailers, retailers buy from producers, producers buy resources from resourcer, resourcers buy from retailers...how can economy crisis happen?
Terengganu seriously, they have just made a full presentation. Economy crisis is not about money missing, its about the products not created, people not working, buying less and so on. |
| Ahh, I see... Thanks omega22 |
Terengganu seriously, they have just made a full presentation. Economy crisis is not about money missing, its about the products not created, people not working, buying less and so on.
so the governments start printing money to create products, raise jobs and buy the unsold stuff
too good to be true for the moment |
Terengganu
http://www.youtube.com/watch?v=vVkFb26u9g8
seriously watch this. i used to think exactly like you and this explained everything. |
#18
Recession can have many different types of causes (or combinations). Omega22 just stated the unemployment driven recession.
Printing money can solve unemployment driven recessions or like everything else in this world it is more complicated than that and there's always side effects. Government printing money to create jobs is the same thing as redistribution of wealth via taxes. It's nothing more than forcing money to move. I'm not going to get into all the problems of increasing the money supply, but even when the side effects don't happen printing money isn't a miracle solution. |
