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I still haven't figured out how the elimination of redundant jobs will be rectified by companies trying to sell products/services. If your customers have no mo
by Blakestr 7y ago
I still haven't figured out how the elimination of redundant jobs will be rectified by companies trying to sell products/services. If your customers have no money (or credit), then you have no more customers.
- dragontamer 7y agoYes. That's why a recession spirals from a little bit of unemployment to a lot more unemployment. The cycle feeds on itself. Eventually, companies stabilize themselves, or maybe the US Government steps in for hiring / temp work. If the US Government steps in every time however, that creates "moral hazard", so its not something that policy makers like to rely upon.
- mateo411 7y agoMoral Hazard applies when the US Government bails out companies. If you are running a company you can take a lot of risks if you know the US Government will bail you out. The US Government can intervene by providing Works Projects or tax relief, but that doesn't create Moral Hazard