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
At this point, the economy is no longer a machine, it’s a complex system. The system as a whole is greater than the sum of its parts. A car is a machine, if you take a part out, the car doesn’t work. Since the economy is a complex system, every element of the system influences the development and trajectory of the system, so if you remove any part, the system is drastically changed. Even if you hit “pause” on the system, when you hit play again it’ll be different than it was when you paused it. The economy is surprisingly fragile, often just teetering on the edge of stability and while it’s generally resilient to perturbations and change something like Covid-19 can come along and easily push it off the cliff, especially as the perturbations against it increase in the lead up (trade wars, tax cuts for the rich, etc.) the resiliency of the system will decrease and it won’t take much to push it off.
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