Comments by "Counting Stars" (@CountingStars333) on "Kurzgesagt – In a Nutshell"
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@wojtekthebear4958 Hey mate, good on you for bringing out those examples of depressions. As for the great depression, it's overproduction combined with what you said, the failing gold standard. In the Modern age, Banking to a large extent causes recessions. It's to do with people taking out loans, building stuff, causing booms and then banks calling back loans all at once, And people not being able to pay up, and then they panic, stopping projects and employment in a cascade effect.
Even the 2008 recession was due to sub prime mortgages given out by banks and people not being able to pay up.
Sure there are many many other factors, mostly emotional factors....and propensity to consume, but the banks and calling back of loans are responsible.
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