Items related to A Neglected Point in Connection With Crises

A Neglected Point in Connection With Crises - Softcover

Nicolas August Ludwig Jacob Johannsen

 
9781330330784: A Neglected Point in Connection With Crises

Synopsis

This book offers a new perspective on the causes of economic crises and depressions. It argues that the conventional view – blaming overspending and excessive investment – is only partially correct. The author identifies another factor, which he calls 'Impairment Savings', as the missing piece of the puzzle. These savings, instead of being invested in new productive capital, are instead used to shore up existing businesses or pay off debts. This process, rather than a lack of funds, is what the author argues leads to a decline in demand and economic stagnation.

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