Recession Causes Quotes

To combat the depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about.

At the center of every recession is a serious imbalance in the economy and mirrored in the financial system. Think subprime mortgage and the Great Recession, or the technology bubble and the early 2000s recession. There are no such imbalances today.

With every year that passes, the more we have to be careful not to forget the causes and consequences of the Great Recession.

All depressions are caused by government interference and the cure is always offered to take more of the poison that caused the disaster. Depressions are not the result of a free economy.

Let's stop for a second and remember where we were eight years ago [in 2008]. We had the worst financial crisis, the Great Recession, the worst since the 1930s. That was in large part because of tax policies that slashed taxes on the wealthy, failed to invest in the middle class, took their eyes off of Wall Street, and created a perfect storm.

Experience shows that a recession is never the result of just a few large industries dragging the economy down while the others continue to expand.

We got into a recession because the global economy went into the recession and we're a big exporting nation.

In New Classical theory, periods of declining employment - business cycle downturns - may be caused by an unexpected decline in aggregate demand, which leaves workers mistakenly holding out for nominal wages that exceed the new market-clearing level.

We went into a recession in 2008 because of gasoline prices. The bubble burst in housing because people couldn’t pay their mortgages because of $4 a gallon gasoline.

It's not just about the current economic environment. History shows that slashing budgets always leads to recession.