What is the fire economy?
economists refer to financial, insurance and real estate sectors as a fire economy. This economy is based on finance, which means that it earns its money by collecting interest on debt and other non -production resources. This economy includes banks, insurance companies and real estate companies. The fire brigade is growing from funding, the tendency of a comprehensive economic system to express all tradable sources, goods and services as monetary value. This makes it easy to trade, as their value is known as the goods. Another economic classification is productive generic. Includes business that produces tangible goods or services. The productive economy relies on business and goods trade to make money.
In any country with a fire economy, fire and professional economies, they affect each other. Profits or losses in this type of economy tend to cause similar situations in the manufacturing economy. For example, if there is interestThe rates that are governed by the financial sector, low, consumers can borrow more. Multiple loan allows consumers to buy more goods and services offered by the production economy. In this situation, the power of one economy also strengthens the other.
Like any economy, the fire economy is a delicate system. Small changes can cause the ripple of drastic effects throughout the system. In 2006, the fire economy in the US began to collapse with the explosion of bubbles for housing. Many Americans suddenly found that their homes were much less than they thought. This led to a crash in the banking system, resulting in debt failure, failing businesses and increasing unemployment, how problems with the fire economy of the Overdékalydo production economy.
Some open economists and scientists criticized the fire economy for their influence on the production economy. Claims that any economy based purelyIt is not necessary for debt, interest and stocks. It is designed to allow people to make money without work or resources that would normally be required. They often often point out that such an economy is always on the edge of a financial disaster, if the price of goods depends, not on supply and demand, but on the success of the stock market.