How can a world economy really boom and crash so much

[Crepitus]

I think that outsourcing had more to do with that, I still don't understand why what I make effects others.

Outsourcing didn't help, that's for sure.

as far as what you make, unless you are a millionaire it doesn't.

[zelmo1234]

Outsourcing didn't help, that's for sure.

as far as what you make, unless you are a millionaire it doesn't.

I am, so how does that effect what you are able to make?

[Polecat]

I am, so how does that effect what you are able to make?

Oh boy! Another front to do battle with my future boss.

Sir, do you ever use your financial ballast to run a competitor in the ditch? If you do that would have an effect on that person and any employees.

[Peter1469]

Not a straw man, an actual effect. "trickle down" failed to happen, concentrating more of the money at the top, leading to the bigger boom/bust cycle.

Your paragraph that I quoted was the straw man since it was not an accurate description of "supply side" economics. It also got words associated with a specific phenomena (irrational exuberance) stuck to the straw man's belt, although it is not relevant to a discussion of supply side.

[donttread]

Everyone in the world is now using pretend money unbacked by actual wealth.

Yup. Partly because citizens are too stupid to understand that a real economy is about people providing goods and services for one another and therefore has growth limitations Then politicians started talking to them about " growing the economy" and the sheep never once wondered how? Or if artifical economic growth just might turn out to be a bad thing. We have to return to real, backed money

[donttread]

It is not that hard, the boom and bust happen because there is something that the people want, and there is not enough of it. This keeps profits high and investors seeking the fast buck.

Because this causes so many start up companies the supply that could not meet demand suddenly overwhelms demand. the prices fall and if the industry is large enough. like housing for example you have a bust that drags the rest of the economy with it

Housing, The Dot com, energy crisis, Savings and loans. it is the same cycles different products.

It happened with Stock, Railroads, even kerosene , It is nothing new.

A 7 billion person economy if managed in real world dollars we be much more stable

[donttread]

I wonder if we are not all frogs in a pot of gradually heating water. Climbing on my old folks soapbox, I remember when people used to think that you had to save to buy something. Enter: Visa! Mastercharge! No one had to wait....immediate gratification. Once we became comfortable with that idea, it was an easy expansion to government. It was ok for us to owe so why not expect government to owe?

I agree but we have limits they don't and I think there debt came first. I can remember as a young husband and father in the mid 80's just shaking my head at the fact that I could deduct credit card interest on my tax return but NOT tuition .

[donttread]

I think that outsourcing had more to do with that, I still don't understand why what I make effects others.

Out sourcing effects one countries share vs. anothers but should not effect the world economy as a whole. The needed widgets are still produced and shipped