Editing 1971: Personal Data
Warning: You are not logged in. Your IP address will be publicly visible if you make any edits. If you log in or create an account, your edits will be attributed to your username, along with other benefits.
The edit can be undone.
Please check the comparison below to verify that this is what you want to do, and then save the changes below to finish undoing the edit.
Latest revision | Your text | ||
Line 35: | Line 35: | ||
The real world economy has much larger and more complex networks of buyers and producers compared to the example above, but nevertheless it works on the same principle. Many people correctly associate the economy with money (or stocks in Ponytail's case), but may not understand the full picture. | The real world economy has much larger and more complex networks of buyers and producers compared to the example above, but nevertheless it works on the same principle. Many people correctly associate the economy with money (or stocks in Ponytail's case), but may not understand the full picture. | ||
β | Circulation of money is critical to a healthy economy. In a recession, financial hardship causes people to spend less money, which leads to fewer goods being produced, fewer jobs available, and people earning and spending even less money. That is why (somewhat counter-intuitively) governments need to spend ''more'' money during a recession in order to infuse money back into the economy and get it circulating again. The | + | Circulation of money is critical to a healthy economy. In a recession, financial hardship causes people to spend less money, which leads to fewer goods being produced, fewer jobs available, and people earning and spending even less money. That is why (somewhat counter-intuitively) governments need to spend ''more'' money during a recession in order to infuse money back into the economy and get it circulating again. The mint printing more money is also a planned, strategic move to cause inflation, which encourages people to spend their money now rather than save it for later because it will lose value over time. Again, getting people to spend their money is necessary to maintain the economy. |
Randall made a comic where stock and economy was an integral part of the largest of the panels: [[980: Money]] | Randall made a comic where stock and economy was an integral part of the largest of the panels: [[980: Money]] |