Where does all money and wealth go in the recession?
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Imagine a two person economy. Joe makes hamburgers, and Jane makes clothing. And for the sake of argument, Joe starts with $5 and both hamburgers and shirts cost $5.
So Joe buys a shirt. Jane now has $5, so she buys a hamburger. So Joe has $5 and he buys a shirt. Etc.
The economy isn’t $5, it’s the amount of hamburgers and shirts being sold. If times are good, they’re trading that same $5 back and forth lots of times. If times are bad, Joe sticks that $5 into his sock drawer and then neither of them get any food. The same $5 is there, but it isn’t moving back and forth.
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