It was quite a disappointment when the House and Senate passed the bailout bill. For one thing, this means the government is becoming more-and-more involved in economic affairs, which are steps towards socialism (which should make Obama fans happy). The free market was created to run itself naturally, and does so (when not constantly regulated by Feds) like the human body, in a way: when there is a virus, the person becomes sick and the body begins to kill it and flush it out so that recovery and re-growth begins. Likewise, when the economy begins to recede (illness), the businesses and much of the public will be affected by job loss (public) and the diminishing value of the dollar (business). However, the diminishing value of the dollar helps debtors and harms creditors—a beneficial reversal, if only temporary. This helps maintain a balance between consumerism and business.
The process is known as the “business cycle” or “business fluctuation”. There are four phases in which these events occur, and they vary in duration.
-Peak
-Recession
-Trough
-Expansion
The process is known as the “business cycle” or “business fluctuation”. There are four phases in which these events occur, and they vary in duration.
-Peak
-Recession
-Trough
-Expansion
The U.S. economy peaked in 2004, and it has been in the recession phase since, though media will have you believe it’s something new. This is when there is a period of decline in total economic output, input, and employment.
Everyone is whining about the recession as it is, but what few people seem to realize, is that this is just the beginning.
The trough phase is when we hit rock bottom. This is when input/output and employment “bottom out” at their lowest levels. Again, the length of time these phases may last varies in degree.
The final phase is expansion. This is when things begin looking up. Employment, input, and output all rise, as do prices. Eventually we’ll reach another peak.
If government keeps feeding money into a declining economy, they will only prolong the recession, and the coming of the trough. The beauty of our capitalist economy is that it is self-sustaining.
So let it be, you fucking commies!
Everyone is whining about the recession as it is, but what few people seem to realize, is that this is just the beginning.
The trough phase is when we hit rock bottom. This is when input/output and employment “bottom out” at their lowest levels. Again, the length of time these phases may last varies in degree.
The final phase is expansion. This is when things begin looking up. Employment, input, and output all rise, as do prices. Eventually we’ll reach another peak.
If government keeps feeding money into a declining economy, they will only prolong the recession, and the coming of the trough. The beauty of our capitalist economy is that it is self-sustaining.
So let it be, you fucking commies!
