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The Cycle of Depression
Transcript
The Cycle of Depression
By Robby Hickman
Fewer Jobs leads to Less Consumer Demand
1. Demand for New Products and Service Drops
As Jobs Are Cut, Unemployment Rate Rises
Fewer jobs means less pay for workers which ultimately leads to consumers have less money, which leads to less demand.
Businesses Drop Prices and Fall into Desperation
Businesses Produce Less Goods to Meet Demand
Less Demand Leads to Businesses Out of Business
Less demand leads to less profit which leads to less jobs and less businesses.
This Takes Us Back to Step 3 and Starts Cycle All Over Again
Businesses Need Less Workers So Eliminate Jobs
Business are selling less therefore do not need as many jobs so they cut back on number of jobs.
Demand and production of products drop.
Businesses drop prices and do whatever they can to keep products selling.
Businesses produce less goods based on consumer demands.
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