It seems people who cut taxes love to increase spending, apart from Coolidge who cut taxes and cut the debt by a 1/3rd

I'll get back on this later

But why do boom and bust cycles happen? It's not tax cuts or deregulations, or any supply side policies

When central banks( such as the FED) expand credit well beyond their own assets and by the funds of their clients, often supported or encouraged by the setting of low interest rates by a central bank. This additional credit flow into the economy from increased borrowing for capital projects stimulates economic activity. Projects which would not have been started before, seem now profitable, creating malinvestment. They increase demand for production materials and for labor and their prices rise, which, in turn, leads to an increase in prices of consumption goods. If the banks would stop the extension of credit, the boom would be rapidly over. To prevent the sudden halt of this boom (and the resulting collapse of prices), the banks must create more and more credit, and the prices will rise even more.

But this expansion of credit cannot continue forever. There is no additional capital or labor; there is only more money (and debt). The means of production and labor which have been diverted to the new enterprises have to be taken away from others. Society is not sufficiently rich to permit the creation of new enterprises without taking away from others. As long as the expansion of credit is continued this will not be noticed, but it can't be pushed indefinitely. The inflation and the boom can last only as long as the public thinks that the prices will stop rising in the near future.

@Neco2040

This is the true concept behind the business cycle

Mhm...

I don’t know how people can support socialism/communism honestly

It’s a fact it doesn’t work

And free market capitalism does

Neither work

And what do you mean by Socialism?

The general population own the means of production/distribution

Private enterprise is nonexistent

Well, no one really supports that

At least not in the U.S

There are edgy kids who do

Like full on commies

Which is retarded

Ok, but who cares

They make up like 1% of Americans

That’s still 3 million people lol

And 62 million people voted for Trump

I’m just saying anyone who is unirnoically a communist or a socialist should rethink everything

That is a much bigger issue

LOL

I don’t understand why people hate trump

Either

It’s not an issue. It’s an amazing thing. 😻 love my president

^

I don’t like his past tho

he’s like a grown man child

Everyone has a past

Yes but the stuff he’s done and said

Straight regarded

Retarded

It’s how you lead that matters and that you put American interests first

But his policies work

Yep

If the Dems would stop being gay and go Away it’d be even better

Nah