Causes of Economic Recession (article)

For those who are unclear what a recession actually is, I will do my best to quickly clarify it. A recession is a contraction phase of the business cycle. The National Bureau of Economic Research (NBER) defines it as a “significant decline in economic activity spread across the country, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.” But what are the causes of economic depression?

This definition looks scary, and rightfully so. Almost every facet of our lives as consumers is affected by a recession. Basic essentials like food and housing become (and are becoming) more difficult to obtain as prices sky-rocket and fear escalates. One of the most important causes of economic recession is unrestrained capitalism. We are paying our dues for years of overproduction and rampant greed. The golden age of capitalism in the seventies and eighties is now finally taking its toll on our economy.

Another one of the important causes of economic recession is falling demand for goods and services. It’s not hard to understand that if we produce more than we are consuming. the demand for the excess production just won’t be there, and we have a waste of resources.

There is a free electronic book that has just been published by an economist who has been carefully studying the current economic crisis. The information presented in the book can help anyone, regardless of what your present circumstances may be. I highly suggest you check it out by following the link below.

If you would like to look at this free electronic book (e-book) pertaining to the present recession and possible depression, check out this website. It answers some common questions people have regarding the causes of economic depression and it also explains steps you can take to protect your income or even increase it.

Article Source: