I found this other great explanation of the Business Cycle. I love listening to different people’s explanations on this topic, as sometimes there are unique points I hadn’t considered, that help me understand it even better. Most still do not get how important it is to understand this. Without an understanding of the Business Cycle, there is no way we can fix our economy, for we will keep voting for clueless politicians who say all we need is to lower taxes. It’s a little more complicated than that. We must understand what causes the bubbles. Politicians and the media tend to focus on the bust, while ignoring that the problem lies in the creation of the artificial boom.
I came across this video by Jacob Spinney. It does an excellent job of explaining all the different factors that contributed to the economic crisis and completely destroys the myth that the free market was responsible. How can something that does not exist be blamed for what is happening?