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Poll: My opinion on this matter is

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  1. #1
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    Economic Depressions are NOT Natural

    An economic depression is not a natural event within an economy. Here is an example to show why this is so:

    Lets take the shampoo industry. There is an economic depression meaning that the shampoo companies are losing money. The only reason for this can be that they are selling less of their product, in this case shampoo. It is obvious that since they are selling less shampoo that it is because less people are buying shampoo. But why are people buying less shampoo? It is not like a bunch of people decided not to wash their hair anymore and thus causing a depression. This example works for any industry.

    The only time that an economy decreases from natural causes is when there is negative population growth. Otherwise we should see a steady increase in sales, proportional to the increase in population.

    The reason that economic depressions exist is because the power elite, such as the Rockefellers, cause them so that they can seize more power. They cause the market to crash making everything really cheap, buy up a bunch of companies and then make the market "get better".

    I smoked a joint about ten minutes ago, so if what I wrote makes no sense I'm sorry. I will try to explain it better in about four hours...
    abc

  2. #2
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    Re: Economic Depressions are NOT Natural

    Exhibit #1: Stupidity. People often do stupid things, this can lead to economic downturns.

    Exhibit #2: Natural disasters. Crop failures, earthquakes, and numerous other events can badly impact capital value and productivity leading to downturns.
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  3. #3
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    Re: Economic Depressions are NOT Natural

    Quote Originally Posted by Sigfried View Post
    Exhibit #1: Stupidity. People often do stupid things, this can lead to economic downturns.
    Well there are some stupid people in this world...

    Exhibit #2: Natural disasters. Crop failures, earthquakes, and numerous other events can badly impact capital value and productivity leading to downturns.
    So, for example, after an event where a lot of people died one would expect to see a decrease in the economy? So an event like WW1 or WW2?
    abc

  4. #4
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    Re: Economic Depressions are NOT Natural

    Quote Originally Posted by MyXenocide View Post
    So, for example, after an event where a lot of people died one would expect to see a decrease in the economy? So an event like WW1 or WW2?
    If productivity is maintained, yes you would expect a contraction of the economy overall. So far as I know the only time in human history where the earth's population declined was during the black plague which indeed set off the "dark ages."
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  5. #5
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    Re: Economic Depressions are NOT Natural

    How do you know it was the Rockfellers (so 1900s)? I think it more likely a bunch of stock brokers smoked a joint right before trading.

  6. #6
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    Re: Economic Depressions are NOT Natural

    Quote Originally Posted by chadn737 View Post
    How do you know it was the Rockfellers (so 1900s)? I think it more likely a bunch of stock brokers smoked a joint right before trading.
    I don't think some pot-smoking brokers could have created the economic mess the country is currently in. I'd have to agree with MyXenocide on this. There's unnatural manipulation going on.

    The bigger and more important issue at this point is: How will working Americans respond?
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  7. #7
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    Re: Economic Depressions are NOT Natural

    Quote Originally Posted by Sigfried View Post
    If productivity is maintained, yes you would expect a contraction of the economy overall. So far as I know the only time in human history where the earth's population declined was during the black plague which indeed set off the "dark ages."
    I think WW1 decreased the worlds population, yet didn't Americas economy increase greatly after WW1? That's not natural.
    abc

  8. #8
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    Re: Economic Depressions are NOT Natural

    Economics is not natural. Its a man-made construct. Speaking about what is natural in an unnatural system is absurd.

  9. #9
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    Re: Economic Depressions are NOT Natural

    Quote Originally Posted by chadn737 View Post
    Economics is not natural. Its a man-made construct. Speaking about what is natural in an unnatural system is absurd.
    I'm not really interested in arguing semantics, so I will let someone else tackle this one.
    abc

  10. #10
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    Re: Economic Depressions are NOT Natural

    Economic depression is natural. Whenever anyone starts a business or offers a new product or decides how much to spend on expanding their company, or whether to open a new branch, or how much to spend on marketing, they are taking risks. Sometimes these risks pay off, and sometimes they don't. Businesses that routinely mal-invest funds are punished through financial loss. An economic depression is the market getting rid of bad ideas.
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  11. #11
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    Re: Economic Depressions are NOT Natural

    Quote Originally Posted by chadn737 View Post
    Economics is not natural. Its a man-made construct. Speaking about what is natural in an unnatural system is absurd.
    This is an interesting observation. Some would say that economics is a natural by-product of mankind's ability to barter, trade and sell products and various commodities in exchange for the possession of others. This can also work in terms of employment. The employer requires a service rendered or a product made, and the worker requires some sort of valuable compensation (e.g. money) for his service so that he can obtain the products necessary for his survival and fulfillment. Some would argue economics is a natural process resulting from the notion that humans are "naturally" competitive and resources are scarce. Since resources are scarce, we compete for who gets what, when and how.

    In Adam Smith's book, Wealth of Nations, the invisible hand is treated as a natural process at work in our daily lives. We each intend to pursue our own self-interest by selling what we possess with others who place an arbitrary value towards it, and we obtain what we need. In the process, we inadvertently (and arguably, naturally) advance the interest of the public as a whole.

    I tend to disagree with the notion that economics is natural, especially since it makes many assumptions, one of which is that we always pursue our own self-interest in nearly every circumstance. It's just another interesting interpretation of how humans interact with each other.
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  12. #12
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    Re: Economic Depressions are NOT Natural

    An economy is a man make system, within which it can function in a natural way or in an unnatural way. A natural way an economy functions is how we(economists) expect it to function. An unnatural way an economy functions is, when things happen that we do not expect, like an earthquake, and which damages the economy in some way.
    abc

  13. #13
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    Re: Economic Depressions are NOT Natural

    Don't know what you mean by "natural," since we don't actually trade things of value anymore like former societies did. We spend paper currency that has no real value. The Federal Reserve simply prints more and more money as our debt increases and the dollar becomes worth less and less. Although the fact that it is not backed by gold, silver or any sort of actual valuable substance means that it is technically worthless in the first place, except for our mutual agreement that it has worth.

  14. #14
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    Re: Economic Depressions are NOT Natural

    It's both natural and not.

    There are always fluctuations, and from a certain perspective, this is a depression. However, on natural terms, depressions are highly self correcting.

    However, the basic premise is right, that the depressions we know of today, do not happen natually - and are the result of secretive power brokers of the world.
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  15. #15
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    Re: Economic Depressions are NOT Natural

    The very idea of an uncapped profit margin, and the fact that it exists and can extend it's girth irrespective of any other group controlling it, must allow for the realization that inflation and deflation are natural. That is, if this is a consideration of whether or not an economic depression is natural for the united states.
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  16. #16
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    Re: Economic Depressions are NOT Natural

    So far as I know the only time in human history where the earth's population declined was during the black plague which indeed set off the "dark ages."
    Hehe. I think you need to take a look at those history books again.

 

 

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