/biz/ - Business & Finance

>>16379330
yeah just print an infinite amount of money and hope it fixes itself

Normally it self corrects by bad business being cleared out and investors being punished

The problem is that the federal reserve system has centralized everything to the point where everyone has been forced to be a “bad” investor in a global Ponzi scheme

When this system collapses it will be the end of the modern world as we know it.

>>16379354
>Normally it self corrects by bad business being cleared out and investors being punished
Can this be fastened?

>How do things get fixed? And can this process be sped up?

Keynesian policies. It absolutely does not self correct. Anyone who disagrees with this post can go explain Germany's 1930's miracle recovery without Keynes.

>>16379360
I think the word your looking for is hastened and the guy your responding nailed it: the system is constructed in such a way as to make the corrections catastrophic when they can’t kick the can any further. I’m anticipating wars and insurrections all over the place.

>>16379409
>>16379354
>>16379381
Thank you for the posts. Also if a country is in a recession. Do politicians try and fix this? And how? I would assume things like immigration because it means more tax payers.

>>16379441
Governments spend more in recessions because they can literally print money, and yes immigrantion to try and increase the pool of taxpayers. It works until it doesn’t.

>>16379451
>>16379451
Also if immigrants come and take a job surely this will have little affect on Job vacancies as the immigrant will have needs such as housing/schooling or hobbies even that someone else has to work at? Or is that good as more productivity is needed? Sorry for the dumb questions I sometimes wonder about economics since I don't understand the affects of policy.

How long can this cycle go of bringing someone in and having someone tend to their needs for example health issues/hobbies/ schooling? Is there a limit to the benifit and how far can you do this before seeing cracks? Or do the hidden costs strain countries?

>>16379441
>I would assume things like immigration because it means more tax payers.
No. Recessions are not caused by a lack of tax revenue. A recession is caused by a lack on confidence in the economy, which self-perpetuates into a death spiral. Economies are very abstracted so it's helpful to unabstract them and look at real goods and services, like in pic related. A portion of the economy is dedicated to building things to keep growing the economy. When everyone decides that the economy isn't going to grow anymore, they stop investing, and investment goods and services (construction, steel etc.) go down the gutter. Workers get laid off, so they no longer spend like they used to, if at all. This affects other firms, and they have to scale back to stay afloat, so they also cut spending and lay off workers, which leads to more layoffs and cost-cutting, until finally your economy has eroded and everyone is living on self-subsistence.

>>16379531
Good explanation could you explain this to me? Is it good or bad? Or just artificially pumping numbers?
>>16379520
How do you guys know so much about economics as well?

a real depression?
the only answer is war.
war solves over production, over population, brings technological progress and enough things to rebuild after it.

we have been at this point in history many times.

Is the allocation of finite resources when people have infinite demands a good definition of economics?

>>16379591
You can take out the "when people have infinite demands". So long as anyone wants anything, that's demand.

>>16379618
Okay you're right.
>>16379520
>>16379552
Could you answer this?

>>16379354
>Implying "they'll" allow that to happen again
2008 was a fluke

>>16379628
Immigration has nothing to do with economic recoveries from a depression, so far as I know. As I said, a depression is a depression of confidence in the economy, in which everyone stops spending, which leads to real goods and services stopping as a result, until you no longer have an economy. The solution, as with someone who doesn't have enough blood in circulation, is to put more money into economic circulation. Money is artificial in the first place so it doesn't matter that you're artificially pumping it in the short-term.

>>16379694
Oh sorry I didn't mean necessarily in a depression I meant in general what effect it would have on a country.

>>16379712
The honest answer is "it depends". It depends on the state of the economy, it depends if businesses actually want or need more people, it depends on the immigrants themselves (skills, language etc.). There's too many factors to generalize.

>>16379409
>multiple countries in South America the past few months seem to already have this happening or so it seems