welcome to watchmojo.com I’m your host – non-carbon soutien and today we
non-carbon soutien and today we
non-carbon soutien and today we discussed the dreaded R word recession
discussed the dreaded R word recession
discussed the dreaded R word recession now recession is basically any downward
now recession is basically any downward
now recession is basically any downward trend in the business cycle which
trend in the business cycle which
trend in the business cycle which usually leads to a decline in production
usually leads to a decline in production
usually leads to a decline in production and employment and that usually leads to
and employment and that usually leads to
and employment and that usually leads to lower income for households which means
lower income for households which means
lower income for households which means that they consume less can turn then
that they consume less can turn then
that they consume less can turn then creates a vicious cycle where companies
creates a vicious cycle where companies
creates a vicious cycle where companies produce less now the way economists
produce less now the way economists
produce less now the way economists measure whether or not we are in a
measure whether or not we are in a
measure whether or not we are in a recession is that they look for two
recession is that they look for two
recession is that they look for two consecutive quarters with negative GDP
consecutive quarters with negative GDP
consecutive quarters with negative GDP growth now sometimes they don’t even
growth now sometimes they don’t even
growth now sometimes they don’t even look for two consecutive back-to-back
look for two consecutive back-to-back
look for two consecutive back-to-back quarters they just look for two quarters
quarters they just look for two quarters
quarters they just look for two quarters in a given year and that’s enough to
in a given year and that’s enough to
in a given year and that’s enough to trigger the fear of a recession now the
trigger the fear of a recession now the
trigger the fear of a recession now the term fear is very important here because
term fear is very important here because
term fear is very important here because recessions usually have an important
recessions usually have an important
recessions usually have an important psychological factor if you think that
psychological factor if you think that
psychological factor if you think that the economy is going to slow down you’re
the economy is going to slow down you’re
the economy is going to slow down you’re not going to be consuming as much and
not going to be consuming as much and
not going to be consuming as much and that means that companies aren’t selling
that means that companies aren’t selling
that means that companies aren’t selling as many goods and in turn what happens
as many goods and in turn what happens
as many goods and in turn what happens is that they need to produce less and
is that they need to produce less and
is that they need to produce less and thus hire less people it basically
thus hire less people it basically
thus hire less people it basically becomes a downward vicious cycle now you
becomes a downward vicious cycle now you
becomes a downward vicious cycle now you may be asking what are some of the
may be asking what are some of the
may be asking what are some of the causes of a recession well those include
causes of a recession well those include
causes of a recession well those include speculation national debt inflation
speculation national debt inflation
speculation national debt inflation devalued currency and the use of
devalued currency and the use of
devalued currency and the use of derivatives which sometimes can get out
derivatives which sometimes can get out
derivatives which sometimes can get out of hand and some of the effects well
of hand and some of the effects well
of hand and some of the effects well there are pretty much bad signs such as
there are pretty much bad signs such as
there are pretty much bad signs such as unemployment foreclosures bankruptcies
unemployment foreclosures bankruptcies
unemployment foreclosures bankruptcies banks aren’t lending as much money stock
banks aren’t lending as much money stock
banks aren’t lending as much money stock market takes an ailing and ultimately
market takes an ailing and ultimately
market takes an ailing and ultimately all this leads to inflation so you’re
all this leads to inflation so you’re
all this leads to inflation so you’re now in the recession that sucks what do
now in the recession that sucks what do
now in the recession that sucks what do you do to get out of it
you do to get out of it
you do to get out of it there are many schools of thought and
there are many schools of thought and
there are many schools of thought and they’re basically different but all of
they’re basically different but all of
they’re basically different but all of them try to accomplish the same thing
them try to accomplish the same thing
them try to accomplish the same thing which is getting back on the road to
which is getting back on the road to
which is getting back on the road to recovery the first one is the Keynesian
recovery the first one is the Keynesian
recovery the first one is the Keynesian school of thought which basically
school of thought which basically
school of thought which basically advocates deficit spending that way the
advocates deficit spending that way the
advocates deficit spending that way the government basically invests and sparks
government basically invests and sparks
government basically invests and sparks economic growth the second one is the
economic growth the second one is the
economic growth the second one is the supply side economic belief that says
supply side economic belief that says
supply side economic belief that says you need to cut taxes to get businesses
you need to cut taxes to get businesses
you need to cut taxes to get businesses to invest higher and if they do that
to invest higher and if they do that
to invest higher and if they do that then basically consumers have more money
then basically consumers have more money
then basically consumers have more money in their wallets to kick-start the
in their wallets to kick-start the
in their wallets to kick-start the economy again and the third one is
economy again and the third one is
economy again and the third one is actually the one that is the most
actually the one that is the most
actually the one that is the most capitalistic one which basically is
capitalistic one which basically is
capitalistic one which basically is let’s say fair capitalism just let it be
let’s say fair capitalism just let it be
let’s say fair capitalism just let it be let the market correct itself what the
let the market correct itself what the
let the market correct itself what the markets invisible hand come in and do
markets invisible hand come in and do
markets invisible hand come in and do what it needs to do
what it needs to do
what it needs to do you
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