What causes business cycles?
Talk about a complex question uttered in four simple words. I’m afraid I may have to take a cop-out on this one. I don’t really see any way to pinpoint it to one, or even ten specific causes. The number of variables would be so enormous that I could probably write about the subject all night and still never do the question justice. And yes, I know I said the economy was fair game in this round, sorry for not having a better answer for you.
Although, I could turn around and say they’re not cycles at all, since a ‘cycle’ implies regularity between the upturns and downturns in the economy. However there is no, to the best of my knowledge, schedule to the ‘cycles’ we see in the market.
Needless to say however, I wish we weren’t seeing the current downturn we’re all experiencing.
But if you’d like to discuss it further sometime Brady, let’s grab a beer :)
Note: This is part of the Ask Matt series where you, the reader, get to post a question and have me answer it.
I am a Web Developer located in Richmond, VA. Primarily, I work on the back-end of websites utilizing my database and desktop application coding experience from the past to achieve desired results for the user interface. Recently however I have started moving more into the UI realm, utilizing JavaScript and AJAX to allow for better performance out of the back-end systems.