Cyclical Economic Change Flashcards

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1
Q

What is a boom

A

A period of economic growth in a capitalist economy when jobs are plentiful, incomes increase and returns on investments are high. It bring associated opportunities and positive impacts

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2
Q

What is a bust

A

A period of economic shrinking where jobs are lost (unemployment rises) and incomes fall, investors loose money. Often follows a boom. Brings negative impacts

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3
Q

What can happen as a result of a bust

A

Recessions or depressions

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4
Q

Economic impacts of a boom

A

new investment, creation of job opportunities,
reduced unemployment, increased household
income

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5
Q

Social impacts of a boom

A

include raising standards of living, lifting
people out of poverty, increased household
spending on housing, health, education, leisure,
luxury items

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6
Q

Economic impacts of a recession (bust)

A

higher unemployment, reduced household / disposable
income, lack of government spending, lack of investment

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7
Q

Social impacts of a recession

A

cuts in household spending on recreation, health, education, housing / rent; falling standard of living
Linked to increased suicide rates and poor health

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8
Q

Impacts of recession on governments

A

decreased spending on social services such as decisions to spend on health, education, housing
Drops in benefits and subsidies - unequal impact

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9
Q

Impact of recession and health

A

strong link between unemployment and health,
especially mental health, during periods of
recession and afterwards - suicide increases
Physical health also worse - less spending on NHS in UK - 2008

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10
Q

Impact on inequalities

A

Recessions worsen inequalities - low income
households less able to withstand periods of
unemployment / reduced income than wealthier
households
Booms can reduce inequalities as poorer groups regain jobs and income increases - many benefits felt in richest groups - bankers bonuses etc.

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11
Q

What was the peak unemployment after the 2008 financial crisis

A

10% in October 2009

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12
Q

LT impacts of busts?

A

Impacts of busts are often delayed - unemployment increases after worst of bust as it is a knock-on impact, therefore impacts from unemployment felt long after the bust.
Often unemployment from busts in low skilled areas can create long term unemployment + reliance on benefits

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13
Q

Spatial inequality of cyclical change

A

recession can cause structural unemployment leading to
service decline in particular areas - North
Unemployment in South West much lower due to service jobs - last to go

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