The Great Depression was a severe worldwide economic depression in the 1930s. The timing of the Great Depression varied across nations, but in most countries it started in 1929 and lasted until the late 1930s.[1] It was the longest, deepest, and most widespread depression of the 20th century.[2]
Worldwide GDP fell by 15% from 1929 to 1932.[3] In the 21st century, the Great Depression is commonly used as an example of how far the world's economy can decline.[4] The depression originated in the United States, after the fall in stock prices that began around September 4, 1929, and became worldwide news with the stock market crash of October 29, 1929 (known as Black Tuesday).
The Great Depression had devastating effects in countries rich and poor. Personal income, tax revenue, profits and prices dropped, while international trade plunged by more than 50%. Unemployment in the U.S. rose to 25%, and in some countries rose as high as 33%.[5]
Cities all around the world were hit hard, especially those dependent on heavy industry. Construction was virtually halted in many countries. Farming communities and rural areas suffered as crop prices fell by approximately 60%.[6][7][8] Facing plummeting demand with few alternate sources of jobs, areas dependent on primary sector industries such as mining and logging suffered the most.[9]
Some economies started to recover by the mid-1930s. In many countries, the negative effects of the Great Depression lasted until the beginning of World War II.[10]
In economics, the invisible hand is a metaphor used by Adam Smith to describe unintended social benefits resulting from individual actions. The phrase is employed by Smith with respect to income distribution (1759) and production (1776). The exact phrase is used just three times in Smith's writings, but has come to capture his notion that individuals' efforts to pursue their own interest may frequently benefit society more than if their actions were directly intending to benefit society. Smith may have come up with the two meanings of the phrase from Richard Cantillon who developed both economic applications in his model of the isolated estate.[1]
He first introduced the concept in The Theory of Moral Sentiments, written in 1759, invoking it in reference to income distribution. In this work, however, the idea of the market is not discussed, and the word "capitalism" is never used.[2] By the time he wrote The Wealth of Nations in 1776, Smith had studied the economic models of the French Physiocrats for many years, and in this work the invisible hand is more directly linked to production, to the employment of capital in support of domestic industry. The only use of "invisible hand" found in The Wealth of Nations is in Book IV, Chapter II, "Of Restraints upon the Importation from foreign Countries of such Goods as can be produced at Home."
The idea of trade and market exchange automatically channeling self-interest toward socially desirable ends is a central justification for the laissez-faire economic philosophy, which lies behind neoclassical economics.[3] In this sense, the central disagreement between economic ideologies can be viewed as a disagreement about how powerful the "invisible hand" is. In alternative models, forces which were nascent during Smith's life, such as large-scale industry, finance, and advertising, reduce its effectiveness.[4]
I can follow this thread, mainly because it's a summarized version of what I learned in school. And now I once again remember what I hate about economics and it's been said before. To much prediction, not enough reality.
A lot of what has been presented makes sense and much of it makes my head feel like it's about to explode. I guess that's why I don't like economists, they seem to fail the common sense test quite often.
Beware the man who has one gun, he probably knows how to use it.
In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4] The opposite of inflation is deflation.
Inflation affects an economy in various ways, both positive and negative. Negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future. Positive effects include ensuring that central banks can adjust real interest rates (to mitigate recessions),[5] and encouraging investment in non-monetary capital projects.
Economists generally believe that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply.[6] However, money supply growth does not necessarily cause inflation. Some economists maintain that under the conditions of a liquidity trap, large monetary injections are like "pushing on a string".[7][8] Views on which factors determine low to moderate rates of inflation are more varied. Low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities.[9] However, the consensus view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth.[10][11]
Today, most economists favor a low and steady rate of inflation.[12] Low (as opposed to zero or negative) inflation reduces the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduces the risk that a liquidity trap prevents monetary policy from stabilizing the economy.[13] The task of keeping the rate of inflation low and stable is usually given to monetary authorities. Generally, these monetary authorities are the central banks that control monetary policy through the setting of interest rates, through open market operations, and through the setting of banking reserve requirements.[14]
bonhommearmonica, WHEW fc/insomnia That was a lot of videos and some very interesting point of view on economics, had to go back a couple of times a listen again, in the end, I don't know.
bonhommearmonica, WHEW fc/insomnia That was a lot of videos and some very interesting point of view on economics, had to go back a couple of times a listen again, in the end, I don't know.
Sorry.
I think it is simply put
Details Definitions seem to be key History of examples with details And no mixing of points they flow..
Milton freedom of the people in the market to choose not have a fake set of decisions added in
Value for the money Government fails because -no restraint on what can be spent
A man manages his own money better then he ever manages others money Politicians will never be able to manage money because it is not their money
Inflation caused by government printing money effects of how it happens
A liberal and I think one of the few I can stomach
A good example of views as he argues with another person
