How can a recession see a drop in profits and a rise in poverty? Where does all the money go, if not to the businesses or people?
In: 6
Money is a made up thing. It’s worth only as much as market values it.
As in, a phone costs 100$. Now inflation hits, and the exact same phone costs 150$. That amount of bills is still there, it’s around, but it isn’t worth as much anymore, and basically, money lost value. Your money can’t buy what it could anymore, meaning you won’t buy it, meaning companies won’t sell it, meaning they’ll have less profits, and remember that materials that they need are paid in money too, and the same thing happened to that – 100$ of plastic 2 years ago is now 150$.
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