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Where does all the money go during a depression or recession - surely there must always be the same amount of money hanging around and it simply changes hands?
Wiki User
∙ 15y ago
This question is perhaps better explained by "where does the money come from in boom times?" The answer is that most of it is "virtual" -it is effectively created by borrowing and lending, because people borrow money to buy products, which the providers receive instantly. As a result, when people stop borrowing, we appear to loose money, because we are only using the money we actually have at the moment, not what we will have in the future (in the form of loans).
Some of it goes to other countries to buy their exports.
Wiki User
∙ 15y ago
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Does a depression always follow a recession?
No. Most economic slowdowns never get bad enough to be called a depression.
Why entertainment is recession proof?
Because people will always love to be entertained
Why IT's industries are still in boom inspite of the recession?
work at home and the health care industries because people always need extra income and are always getting sick. hope that helps. http://earnlotsofincome.yolasite.com
Are military benefits guaranteed while serving during a recession or depression?
Yes. I am in Finance in the military. The only way you will ever lose your pay or benefits while serving in the military is in the case that our government ceased to exist. if the economy was bad enough that the government has no money there first priority will always be national defense. Don't worry about losing your benefits. And with the way the economy is looking I would say that the military is the safest place to be.
Is owning gold good in a depression?
Owning gold during a depression will give you an upper hand because gold has always held a high value and worth. Whereas money such as the dollar, if a depression were to occur then its value and worth would deflate and it wouldn't help as much as gold would.
Does a depression always follow a recession?
No. Most economic slowdowns never get bad enough to be called a depression.
When the stock market crashes for a period of time its called a what?
It is either called a recession or a depression. The stock market is always fluctuating, it is called a boom when it does well.
What A recession is always associated with?
Contraction
Why entertainment is recession proof?
Because people will always love to be entertained
What do you always get hanging from apple trees?
Branches
What were the effects of the Great Depression on Asia?
The American Great Depression had a significant impact on the entire world, much as the recent recession had severe impact on the global economy. Asian's were arriving in the US via California in search of jobs and money. As the railroad finished and the Great Depression began, this hurt Asian immigrants who would send money back home. This also decreased imports overall in the US and Asia has always been a large exporter.
How do you start a business in a recession?
Find a business that meets the need of the market to save money, feel better or retain their social standing. Large makeup companies were started in the depression, so businesses that are beauty based will thrive in a recession. Credit counseling, credit repair and temp agencies thrive during budget cutting times.The fundamental rules for starting any business still applies during a recession. The challenge is always the same: meet a market need, which is often impacted ans shaped by a recessionary economy.
What does it mean when your always mad or sad?
Depression
What of Nestle's future given the recession?
People will always eat chocolate no matter how broke they are.Nestle will survive.
What is the word meaning some who always in sad?
Depression.
Why does my granddaughter always have her little tongue hanging out?
It is advisable to get the child examined.
What always changes the velocity of a object?
The velocity of object always changes with wanted or unwanted outer forces.
