Wednesday, July 14, 2021

Why Economies Might Crash

 Economies crash when the bridges between savers and borrowers fall apart. When people panic and think that a bank will crash, they will all rush to get their money out because obviously nobody wants to lose money when the bank crashes. However, taking all the money out of the bank causes it to crash! The government can also cause crashes. Some governments will literally take money from the banks to pay off their debts, which obviously does not make the depositors or the bank happy. Price ceilings and other government intervention will also cause economies to crash, hence the reason why all communist countries are dirt poor. 

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