First of all, parson my ignorance. But since we’re heading towards a depression, why cannot we just make a reser and start from where we left of? Or from a certain period of time.
What are the drawbacks and reasons we can’t.
In: Economics
How do you define resetting?
The closest thing I could imagine a government really being able to achieve would be to stop backing their currency which would effectively make it worthless.
because if you do that, some people are gonna “reset” to have more than they do now. and others are gonna “reset” to have less than they do now. how are you gonna enforce it and deal with the unhappiness from both sides?
Im trying to be optimistic and cant exactly answer your question. The Spanish flu did cause a small economic slow down, but it was also after a world war. The world survived. Economy’s recovered.
The world is more intertwined than before, and I’m sure in 6 months we’ll be back at it again. We will recover. A reset isn’t necessary unless the us dollar collapses. At which point we will go back to gold standard again – that’s kind of when a “reset” would happen.
The same type of reason a doctor can’t just reset your body when something goes wrong. It’s a complex, intertwined system that no single piece has total control over. And those pieces are in multi layers of smaller pieces and larger pieces (think heart, then muscle cells) and you have entire systems on each one of these levels that intertwine. Like, the cardiovascular system is one piece, but it wouldn’t function without cell respiration.
I hope that’s a good metaphor, what I’m saying is: it’s super vast and complicated and nobody controls it to the extent that they can reset it because it’s vast layers of endlessly intertwining systems.
You can’t rewind it because people would have to return goods and services that have already been consumed, undo work that’s already been done, and forget things that they’ve already learned.
You can’t pause it because then people couldn’t get the goods and services they need, other than by violent force.
Also because communications are part of the economy, without it, people wouldn’t know that it was paused.
It has to move forward, however well it can.
Reset? I should forfeit my house, my retirement investments, my kids’ college investments, my emergency fund, etc? We all just start at zero and grab whatever property, vehicles, businesses and other assets we find attractive?
Have you thought this through?
A recession IS an economic reset; it gets rid of all ineffective and wasteful businesses, it clears out greedy business owners, the cost of living comes down, workers who have skills that are not valued re-skill. People cut back on unnecessary and wasteful items and the money pours into items that people truly want.
Latest Answers