The business cycle is caused by the forces of supply and demand—the movement of the gross domestic product GDP—the availability of capital, and expectations about the future. This cycle is generally separated into four distinct segments, expansion, peak, contraction, and trough. Factors such as GDP, interest rates, total employment, and consumer spending, can help determine the current stage of the economic cycle. The average length of a growing economy is 38.7 months or 3.2 years. The average recession lasts for 17.5 months or 1.5 years.
In this video, a brief list on the factors controlling economy are summarized. By giving the scores to the factors, it’s clear to know in which stage the economy is and obvious to know whether the economy will grow or will be the opposite. But, the factors are out of control now due to many disruptions happenings such as war, constant losses by virus infection and natural disasters, etc. Since factors driven economy is stagnant, it is necessary to cope the changes and challenges by different approaches such as investment-driven, innovation-driven, and wealth-driven strategies.
According to Rostow’s model, the level of growth dependency is quite unique respectively to achieve community level business to local and global business level. It is essential for each development nation to drive the right force to maintain the economy stability and sustainable economic growth.
Rostow’s stages of economic growth model:
The traditional society
The preconditions for take-off
The drive to maturity
The age of high mass-consumption
Many rooms to growth..
So do many crises..
What are we driving?
Is the economy breathing healthy?
Where and what to fix?
By giving scores to the factors, it is clear that many actions are needed to be taken..
Why it takes so much time?
What is the cause?
Many questions arise..
Is the economy is being watched as it is?
Many rich men are born so do the opposite by a speedier and higher volume.
Is the economy system outdated to keep its prosperity?
In my humble opinion, there are various procedures that hinder the understanding on the reality in real time.
There are many obstacles and steps to make everything profitable that cause the economy cycle slower.