How can factors like inflation, supply and demand, and interest rates trigger recessions? Learn the economic basics of modern markets. -- For millennia, the people of Britain had been using bronze to make tools and jewelry, and as a currency for trade. But around 800 BCE, that began to change: the value of bronze declined, causing social upheaval and an economic crisis— what we would call a recession today. So what causes recessions? Richard Coffin digs into the economic fluctuations that affect our modern markets. Lesson by Richard Coffin, directed by Augenblick Studios. Animator's website: Educator's channel: Sign up for our newsletter: Support us on Patreon: Follow us on Facebook: Find us on Twitter: Peep us on Instagram: View full lesson: Thank you so much to our patrons for your support! Without you this video would not be possible! Felipe Hoff, Rebecca Reineke, Cyrus Garay, Victoria Veretilo, Michael Aquilina, William Biersdorf, Patricia Alves Panagides, Valeria Sloan Vasquez, Mike Azarkman, Yvette Mocete, Pavel Maksimov, Victoria Soler-Roig, Betsy Feathers, Samuel Barbas, Therapist Gus, Sai Krishna Koyoda, Elizabeth Parker, William Bravante, Irindany Sandoval, Mark wisdom, Brighteagle, Beatriz Inácio, Mighterbump, Pamela Harrison, Maija Chapman, Liana Switzer, Curtis Light, The Brock, Dianne Palomar, Edgar Campos Barrachina, Maria Lerchbaumer, Ever Granada, Marin Kovachev, Ravi S. Rāmphal, Penelope Misquitta, Tekin Gültekin, Jhuval, Hans Peng, Gaurav Mathur, Erik Biemans, Tony, Michelle, Katie and Josh Pedretti, Vaibhav Mirjolkar, Thomas Bahrman, Allan Hayes, Aidan Forero, Uday Kishore, Mikhail Shkirev, Devesh Kumar, Sunny Patel and Anuj Tomar....(read more)
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An economic recession is a period of economic decline, characterized by decreased economic activity and employment rates, and increased inflation rates. It is a cyclical event that occurs from time to time, impacting millions of people around the world. There is no singular cause of a recession, but there are several factors that can trigger it. In this article, we will explore the causes of economic recessions. 1. Declining Consumer Spending Consumer spending makes up a significant part of any economy. When consumers stop spending due to uncertain economic conditions, it can trigger a recession. Consumers may cut back on spending when they face job losses, declining incomes, or inflation. Slowing consumer spending leads to a slowdown in economic activity, which can ultimately lead to a recession. 2. Financial Crisis Financial crises occur when there is a shock to the financial system that undermines the confidence and trust of investors and lenders. Financial crises can trigger a recession by impairing the ability of firms and households to borrow and invest, which can lead to higher unemployment rates, lower economic production, and lower consumer spending. 3. High Interest Rates High interest rates make borrowing expensive and reduce the money supply. This situation can slow down economic activity, leading to a recession. Governments increase interest rates to control inflation and reduce debt in the economy which eventually leads to a decrease in investment, lower consumption, and fewer jobs. 4. Asset Bubbles Asset bubbles occur when asset prices grow too quickly, fueled by speculation and irrational exuberance. When the bubble bursts, the market can experience a sharp decline in asset prices. This can trigger a recession as people lose money and are unable to repay their debts, which eventually leads to a financial crisis. 5. Government Policies Government policies can also contribute to the onset of an economic recession. For example, policies that encourage lending and promote loose fiscal policy can create a housing bubble, which can eventually burst and lead to a recession. Additionally, fiscal policies that increase taxes or reduce government spending can lead to a decrease in consumer spending and a slowdown in economic activity. In conclusion, economic recessions can occur due to various factors and triggers. While the causes of recessions may vary, there is no doubt that they have significant economic and social costs. Governments and policymakers need to be vigilant and take measures to prevent economic downturns, to ensure sustainable economic growth, and to protect the welfare of their citizens. https://inflationprotection.org/richard-coffins-perspective-on-the-root-cause-of-economic-recessions/?feed_id=84197&_unique_id=642b04e4229c8 #Inflation #Retirement #GoldIRA #Wealth #Investing #animation #AugenblickStudios #causesofrecession #consumers #debt #DowJonesIndustrialAverage #economicrecession #economics #education #federalreserve #Finance #gdp #goodsandservices #greatdepression #inflation #inflationrate #interestrates #macroeconomics #market #microeconomics #money #moneymanagement #naturaldisaster #prosperity #Psychology #recession #richardm.coffin #stockmarket #supplyanddemand #Ted #TedEducation #TEDEd #Teded #war #RecessionNews #animation #AugenblickStudios #causesofrecession #consumers #debt #DowJonesIndustrialAverage #economicrecession #economics #education #federalreserve #Finance #gdp #goodsandservices #greatdepression #inflation #inflationrate #interestrates #macroeconomics #market #microeconomics #money #moneymanagement #naturaldisaster #prosperity #Psychology #recession #richardm.coffin #stockmarket #supplyanddemand #Ted #TedEducation #TEDEd #Teded #war
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