Another economic downturn is just a matter of time says the Economist

Bull market soon to become roadkill?
A Stevan Noronha image.

– News covered by Quincy Quarry News with commentary added.

 

Another economic downturn is just a matter of time reports The Economist.

 

“It will be harder to fight than the last one.”

 

The Economist has just published a feature article laying out an interesting argument on how the next economic will likely play out as well as why.

 

An Amazon order fulfillment warehouse
A Julio Cortez/AP image

A major point posed is that in recent decades economies around the world have become ever increasingly interconnected.

 

In turn, such makes it ever more difficult for a national economy – even one as large as the United States’ – to buffer itself from external events.

 

Further, given increasingly complicated inter dependencies across national borders and local production specialization, even but a modest downturn for a particular industry could have dire consequences for particular areas wherein that business activity is a major share of these areas’ commercial activity. 

 

What goes up eventually comes down …
An emaze.com image

For example, but a modest international economic downturn could have dire consequences for area where tourism is the primary driver of the local economy such as Tahiti and Las Vegas or where local product production activities are heavily focused on – for example – manufacturing recreational vehicles.

 

In short, there are ample good reasons why economics is called the dismal science.

Source: Another economic downturn is just a matter of time