This is a very common theory, but one that I don’t quite understand why it has been so widely embraced.
The first two phases of the business cycle, a recession and depression, are typically followed by a recovery. The third, peak phase, is characterized by high employment and consumption.
The political cycle is a natural part of life, from birth to death.
Political business cycles are a myth. One of the most popular theories out there is that these cycles are caused by the need for a certain amount of money to be made. Of course the theory that money is at the core of the business cycle is a fallacy.
Political business cycles are a myth. One of the most popular theories out there is that these cycles are caused by the need for a certain amount of money to be made. Of course the theory that money is at the core of the business cycle is a fallacy.It is true that the business cycle is an indirect, temporary condition that affects all businesses, but it is not caused by the need for money. It is caused by an economic policy, the government’s policies, or the actions of individuals. In short, it is not caused by a market. There is no need for a market to create a business cycle.
Political business cycles are a myth. One of the most popular theories out there is that these cycles are caused by the need for a certain amount of money to be made. Of course the theory that money is at the core of the business cycle is a fallacy.It is true that the business cycle is an indirect, temporary condition that affects all businesses, but it is not caused by the need for money. It is caused by an economic policy, the government’s policies, or the actions of individuals. In short, it is not caused by a market. There is no need for a market to create a business cycle.I don’t see the need for a market. If there is a market, it is for certain goods and services. When there are so few goods and services, for so many people, that the market is not a market, then it is a political economy, an economic system of scarcity. When the government imposes a tax or other policy that hurts the poor, or forces the rich to give up their surplus, then it is a political economy of scarcity.
Political business cycles are a myth. One of the most popular theories out there is that these cycles are caused by the need for a certain amount of money to be made. Of course the theory that money is at the core of the business cycle is a fallacy.It is true that the business cycle is an indirect, temporary condition that affects all businesses, but it is not caused by the need for money. It is caused by an economic policy, the government’s policies, or the actions of individuals. In short, it is not caused by a market. There is no need for a market to create a business cycle.I don’t see the need for a market. If there is a market, it is for certain goods and services. When there are so few goods and services, for so many people, that the market is not a market, then it is a political economy, an economic system of scarcity. When the government imposes a tax or other policy that hurts the poor, or forces the rich to give up their surplus, then it is a political economy of scarcity.The government of a nation is not necessarily the government that controls the price of a good or service. A government is only the one that imposes taxes or other policy that hurt the poor. A government may impose a tax that hurts the rich and the poor are not necessarily the same people. A government that gives the government to the poor is a government that helps the poor, but it is not necessarily the government that helps.