How can a world economy really boom and crash so much

[donttread]

There are x amount of people in the world with y needs and z wants. People invest in , build and work in providing, directly or indirectly, these goods and services. We even have advertising in case we forget what we need or want or are unable to think of it on our own. Now one can understand how a city, a state, even a nation can have semi-dramatic economic ups and downs . But how does a world economy "crash" or "Boom". It makes no real sense. If American has bad weather and can't grow the world's grain, someone else will, etc
In fact isn't stability supposed to be the one and IMHO only potential benefit to a world economy? But even that's a lie

[Peter1469]

Too much debt spending.

[Common]

Too much debt spending.

I think everyone agrees with that. I think the difference is in what each side wants to spend on and that republicans think no one should pay taxs, which translates they are protecting the rich

[Peter1469]

I think everyone agrees with that. I think the difference is in what each side wants to spend on and that republicans think no one should pay taxs, which translates they are protecting the rich

I have not heard the zero tax proposal. The problem is not tax revenue. It is spending 50% above tax revenue.

[Chris]

There are x amount of people in the world with y needs and z wants. People invest in , build and work in providing, directly or indirectly, these goods and services. We even have advertising in case we forget what we need or want or are unable to think of it on our own. Now one can understand how a city, a state, even a nation can have semi-dramatic economic ups and downs . But how does a world economy "crash" or "Boom". It makes no real sense. If American has bad weather and can't grow the world's grain, someone else will, etc
In fact isn't stability supposed to be the one and IMHO only potential benefit to a world economy? But even that's a lie

Interesting topic.

For one, you're describing a post-scarcity society, the one Marx and communists dream of, where y and z are met by x. Such a world doesn't and never will exist. The fact of the matter is x is limited and y and z unlimited. Trivial examples of limited x are I can do only one thing at a time and if I occupy this space you cannot.

So why the fluctuations. Because supply and demand change and the lag between each catching up causes disequilibrium, what we call the business cycle. A simple example is the baby boomer wave.

Why are the fluctuations so great? That's what Peter is getting at. Government tries to manage the economy to smooth out the business cycle curve and, because government screws everything up, only makes it worse.

[Polecat]

I think this happens by design to relieve the general population of their savings.

[The Xl]

Our debt money system. It's unstable.

[The Xl]

I think everyone agrees with that. I think the difference is in what each side wants to spend on and that republicans think no one should pay taxs, which translates they are protecting the rich

Why have a debt at all? Why do we have a debt on a fiat currency backed by nothing?

The system we have sucks.

[Crepitus]

There are x amount of people in the world with y needs and z wants. People invest in , build and work in providing, directly or indirectly, these goods and services. We even have advertising in case we forget what we need or want or are unable to think of it on our own. Now one can understand how a city, a state, even a nation can have semi-dramatic economic ups and downs . But how does a world economy "crash" or "Boom". It makes no real sense. If American has bad weather and can't grow the world's grain, someone else will, etc
In fact isn't stability supposed to be the one and IMHO only potential benefit to a world economy? But even that's a lie

Supply side economics.

[The Xl]

We have a system when the significant majority of money in circulation is fraudulent bank loans created out of nothing as debt, where if debts, personal and government, are payed off, the money supply would shrink and eventually evaporate, leading to a depression, where more loans need to be issued to pay off the older loans, or the system will collapse. And of course, private bankers control all of that.

It's either a depression and the gimmick collapsing or unsustainable growth. What can possibly go wrong there?