preview

The Growth And Peak Stage Of A Business Cycle

Decent Essays
Open Document
Business cycles contain several stages which span GDP and time itself. These stages are growth, peak, recession and a trough or depression. These cycles repeat themselves over and over through out time in the business world. The growth and peak stage of a business cycle are when companies are building and providing great products and services. This is also the period when jobs are most abundant and harder to fill because job positions are in demand. After the peak stage a risky point in time follows which is the recession stage. During this time people tend to loose their jobs and it is a much harder time to find a job as well. The depression stage is depressing to both companies and people because many consumers lose their jobs and can…show more content…
We entered a depression period and this period lasted longer then some of the other periods in our history. Many economists wonder why a recovery, which leads out of the depression and into the growth stage, took longer then normal to begin. When looking back at history, I may have found the answer. Big spending is required to make companies produce more and the biggest factor of spending money is war. This paper will examine a close relation in our history of recession, war, and recovery. Since 1950, there have been many recessions in the US, which greatly affected all Americans. At the same time there have been innovations, technology, banking changes and political activities which have been thought to have caused the recessions, and ultimately fixed the recessions. We will explore a potential relationship between recovery and war as to the potential for speeding up a recovery. Not too long ago, during the Great Recession of 2007-2009, employment had peaked in the first part of 2008 and then it declined. According to McConnell (2015), “In the first part of 2010 job growth was very slow to recover and economists have been vigorously debating why employment recovered so slowly after the Great Recession of 2007-2009. The Great Recession began December 2007 and ended in June 2009” (p.18). Banks had loaned excessive amounts of money to consumers
Get Access
Related
Get Access