What is recession? What causes it? What are the consequences?
In: Economics
Recession is the economy going down the gutter big time.
It may have many causes.
For example a plague or war.
Many people are dead.
Dead peeps cant work.
No goods are produced.
No services can be provided.
No one can buy them.
Economy down.
Another example is the too much money in circulation.
Say a country has to finance a war and starts printing money.
More money is good right?
NO.
Too much money means it’s worth goes down.
That’s called inflation by the way.
Suddenly a loaf of bread costs 1000$ and you
can’t by shit.
Nobody can buy shit and the economy goes down.
In general you can think of the economy as a circulation of money. If the circulation isn’t working the economy will start to slow down.
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