Why does the economy grow and shrink?
The Breathing Economy
Why does the economy grow and shrink?
The economy — it sounds like this huge machine in a faraway building. But really, it's just all of us, buying and making and trading things, all day long. And it does something strange: it grows bigger, then shrinks smaller, over and over, like breathing.
When the economy grows, it means we're making more stuff and buying more stuff than we did last year. More pizzas baked. More apps downloaded. More haircuts given. Everyone's a little busier, and there's a little more money moving around. That growth has a name: expansion.
