You can watch all my videos a week early and ad-free for around $2.50 per month on Nebula. You’re going to hear the word “recession” a lot in the coming months. In this video I want to explain what recessions are and why they happen. Check out all my sources for this video here: Join the Newsroom (over on Patreon) to get access to behind-the-scenes vlogs, extended interviews, & to support the channel. See you there! - ways to support - My Patreon: Our custom Presets & LUTs: - where to find me - Instagram: Tiktok: Facebook: Iz's (my wife’s) channel: - how i make my videos - Tom Fox makes my music, work with him here: I make maps using this AE Plugin: All the gear I use: - my courses - Learn a language: Visual storytelling: - about - Johnny Harris is an Emmy-winning journalist. He currently is based in Washington, DC, reporting on interesting trends and stories domestically and around the globe. Johnny's visual style blends motion graphics with cinematic videography to create content that explains complex issues in relatable ways. - press - NYTimes: NYTimes: Vox Borders: Finding Founders: NPR Planet Money: ...(read more)
BREAKING: Recession News
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Why Recessions Happen A recession is generally defined as a significant decline in economic activity, characterized by a contraction in gross domestic product (GDP), a decline in real income, and high unemployment rates. These periods of economic downturn have occurred throughout history, affecting nations and economies on a global scale. While recessions can have devastating impacts on individuals and communities, understanding why they happen is essential for policymakers to design effective measures for prevention and recovery. 1. Business Cycles The primary cause of recessions is the natural ebb and flow of the business cycle. These cycles are periods of expansion and contraction that occur repeatedly within an economy. During an expansionary phase, economic activity flourishes, businesses thrive, and employment rates increase. However, as this cycle reaches its peak, imbalances build up, such as excessive borrowing and speculative investments. Eventually, these imbalances become unsustainable, leading to a contractionary phase and triggering a recession. 2. Financial Crises Recessions can also be sparked by financial crises. When excessive risk-taking and speculation occur in financial markets, they can become vulnerable to sudden shocks. For instance, the subprime mortgage crisis in 2008 was a key trigger for the Great Recession. The collapse of housing markets and the ensuing financial contagion caused a severe downturn in the global economy. Financial crises have the potential to amplify the effects of a business cycle contraction, making recessions deeper and more prolonged. 3. External Shocks External shocks, such as geopolitical events or natural disasters, can also play a significant role in causing recessions. These events disrupt normal economic operations, often leading to a sudden decline in consumer and investor confidence. For instance, the oil price shocks of the 1970s, resulting from geopolitical conflicts in the Middle East, led to a recession characterized by high inflation and unemployment rates. External shocks can be particularly challenging to predict and mitigate, making economies susceptible to sudden downturns. 4. Structural Weaknesses Recessions can also occur due to underlying structural weaknesses within an economy. For example, excessive dependence on a single industry or sector can make an economy vulnerable to external shocks. If that industry experiences a downturn or faces competition from global markets, the entire economy may suffer. Structural weaknesses can also arise from inadequate institutional frameworks, such as weak financial regulations or inefficient labor markets, making economies more prone to recessions. 5. Monetary and Fiscal Policy Mistakes In some cases, recessions can be the result of monetary or fiscal policy mistakes. Central banks and governments have the tools to control interest rates, money supply, and government spending, which can influence the overall health of an economy. If policymakers misjudge the timing or magnitude of their interventions, it can have unintended consequences. For instance, excessively tight monetary policy can restrict lending, leading to a decline in consumer spending and investment, ultimately leading to a recession. In conclusion, recessions are complex economic phenomena resulting from a combination of factors. The inherent cyclicality of the business cycle, financial crises, external shocks, structural weaknesses, and policy mistakes can all contribute to periods of economic downturn. Understanding these causes is crucial for policymakers to formulate appropriate responses, such as implementing countercyclical fiscal policies or regulatory reforms. By learning from past experiences and adopting proactive measures, economies can minimize the frequency and severity of recessions, fostering sustainable growth and prosperity. https://inflationprotection.org/the-reasons-behind-recessions-unveiling-the-causes/?feed_id=118329&_unique_id=64b58ca68444a #Inflation #Retirement #GoldIRA #Wealth #Investing #capitalism #cfc #crash #economics #economy #expenditures #exports #gdp #goodsandservices #inflation #JohnnyHarris #JohnnyHarrisVox #JohnnyHarrisVoxBorders #market #money #prices #recession #supplychain #unemployment #UnitedStates #US #USA #vox #VoxBorders #RecessionNews #capitalism #cfc #crash #economics #economy #expenditures #exports #gdp #goodsandservices #inflation #JohnnyHarris #JohnnyHarrisVox #JohnnyHarrisVoxBorders #market #money #prices #recession #supplychain #unemployment #UnitedStates #US #USA #vox #VoxBorders
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