I know there must be reasons and this is a dumb question, but I’m a bit of an abstract thinker and have trouble grasping it from a big picture presepctive. Can someone break this down for me? Can’t we all just kind of agree to just kind of… Reset some numbers or something?
Sincerely,
I’ve never taken an economics class in my life
In: Economics
The easiest, simplest way to think about economics is one of my favorite lines from MiB (and one of the most quoted): “a person is smart. People are dumb, panicky animals and you know it.”
If we, as a unified species, could decide “you know what, let’s not panic this year” it would be as simple as that. Goods could be bartered, services could be traded, and we wouldn’t have these cascading crashes.
But we, as a species, are panicky idiots. Panic causes more panic and people are afraid to spend their money. Lenders are afraid to lend. Governments invest trillions just to keep money flowing. The panic causes imbalance, and the imbalance causes failures, and it takes us a long time to get our shit together.
So remember: no economic theory or outlook can trump the simple fact of people being dumb, panicky animals.
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