Recession Has Two Causes

“Lack of “consumer confidence” and the government printing money with nothing valuable behind it. It’s “just paper.” Lack of consumer confidence is simply, people AFRAID money will soon be in short supply and holding onto theirs, creating a “self-fulfilling prophecy.” Money then DOES become “in short supply” because they’re holding onto theirs. Then the government starts “printing money,” making every dollar already in existence worth less. It is, in effect, the government STEALING your money. Eventually, the “free market” brings things back to normal and politicians blame the “wage-price spiral” where workers discover their money doesn’t buy as much as it did and demand more money. Then their employers raise their prices and EVERYBODY pays more for EVERYTHING, causing yet another demand for higher wages, making everybody pay more for products, etc., etc. The “wage-price spiral” is a SYMPTOM of recession, not the cause. (Yahoo News/AP)