The economy runs in circles

The economy runs in circles, returning over and over again. The economy crises give some social groups a superiority over other social groups. This superiority is financial, emotional, moral.

Occasionally there is a shortage of labor and, at times, there is a surplus of labor, when the real estate market is running, when it is soaring. Apart from these two more similar phenomena can be observed in society.

When there is a shortage of labor, salaries go to heaven because emigration is enormous; when it changes, a fraction of the same jobs work for salaries of the same size, and overdrafts are constant.

When the real estate market is soaring, people in the Balkan wage are trying to raise sums over London to buy or rent real estate, despite the 8-10 times the London-Balkan average salary. When the market is in crisis, the same real estate pennies are rented out for pennies, because they do not pay more for them.

Cyclicality brings one or the other social group to a disadvantage or advantage to another group or to its disadvantage. When the environment changes, vengeance will also turn to space, and the better-placed layer will take revenge for the losses and treatment suffered in the previous cycle, for those who are currently in a worse position will be revenge in the next cycle.

The cyclical nature of the economy is inevitable because the basic mechanisms provide for this. The cause of the cycles is, in part, the emotional and unreasonable reactions to the crises.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this:
search previous next tag category expand menu location phone mail time cart zoom edit close