What causes the Business Cycle?

Discussion in 'Economy' started by ShackledNation, Jul 12, 2011.

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What causes the business cycle?

  1. Inherent in capitalism

    1 vote(s)
    33.3%
  2. The expansion of the money supply

    2 vote(s)
    66.7%
  3. Drop in consumer/investor confidence

    0 vote(s)
    0.0%
  4. The Federal Reserve

    0 vote(s)
    0.0%
  5. Fall in aggregate demand

    0 vote(s)
    0.0%
  6. There is no such thing as a business cycle

    0 vote(s)
    0.0%
  7. Other

    0 vote(s)
    0.0%
  1. ShackledNation
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    ShackledNation Libertarian

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    There are many different theories, but nobody seems to talk about them. Some say it is a fall in aggregate demand. Other's say it is the creation of money. Many believe it is simply an inherent part of capitalism. What do you think? I think this is an important topic to discuss.

    I meant to include allow multiple choices in the poll, but forgot.
     
    Last edited: Jul 12, 2011
  2. uscitizen
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    uscitizen Senior Member

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    Only stupit people think where we are now is part of the business cycle.
     
  3. ShackledNation
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    ShackledNation Libertarian

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    What causes the business cycle? And why is where we are now not part of your understanding of the cycle?
     
  4. uscitizen
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    uscitizen Senior Member

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    Because where we are has been primarially caused by overspending on the credit card by individuals, corporations and the government. Credit mostly based on inflated values of real estate and stocks, etc.
    And the fact that we have outsourced so much of our jobs to china, mexico, etc.
    And we are competing with cheap labor in poor countries around the world, aka globalization.

    Our living standards will drop, the only question is how fast and far they will drop.

    The buying power of median wage earners in the USA is at the same level it was in 1969 once you figure in inflation.
     
  5. ShackledNation
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    ShackledNation Libertarian

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    What do you see as the cause of the business cycle?
     
  6. uscitizen
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    uscitizen Senior Member

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    the business cycle is irrelevant/invalid right now in US economics.
     
  7. Moonglow
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    Moonglow Diamond Member

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    through human history there have been crashes, panics, recessions,depressions. All are caused by over manipulation of the market
     
    Last edited: Jul 12, 2011
  8. ShackledNation
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    ShackledNation Libertarian

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    In order to claim our current situation is not part of the business cycle, you must explain what you believe causes the business cycle. You cannot logically exclude something from a category without explaining your prerequisites for said category.
     
  9. uscitizen
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    uscitizen Senior Member

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    sure I can, I explained the major causes of why we are where we are and they are not the business cycle per sie.
     
  10. ShackledNation
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    ShackledNation Libertarian

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    This topic is about the business cycle, not why we are where we are. For the sake of remaining on topic, please explain what you believe causes the business cycle.
     
    Last edited: Jul 12, 2011

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