By expanding the field of education within the economy and creating opportunities for the less benefit, it helps increase the GDP and decreases the rising wealth gap between citizens. It lets the less benefit spend more on daily necessities such as food, clothing, shelter, etc. It lowers the chance of inflation as well

Higher quality employment can result in a better workplace and an overall better quality of life. This can also higher the job satisfaction of the employee, leading to a more balanced and stabilised society and economy. 

為什麼高質量的就業很重要？ 通過擴大經濟中的教育領域並為受益較少的人創造機會，它有助於增加國內生產總值並縮小公民之間不斷擴大的貧富差距。它讓福利較少的人在衣食住行等日常必需品上花費更多。它也降低了通貨膨脹的機會 更高質量的就業可以帶來更好的工作場所和更好的整體生活質量。這也可以提高員工的工作滿意度，從而使社會和經濟更加平衡和穩定。

An economic cycle is the process of the economy undergoing 6 different phases, expansion, peak, recession, depression, trough, and recovery. These phases are indicated by the current market standards, such as GDP, inflation rates, interest rates, and the spending of the economy. 

Expansion

During the first stage of the economic cycle, the economy shows many positive economic signals such as higher rates of employability, higher wages, profit, income and output, and the demand and supply of most products counteract each other. 

Peak

The peak of the cycle is the second stage of the cycle, indicating the maximum profit has been achieved and most products, services and goods are at their peak price. Most things are at their saturation point meaning they are at a dry point of the economy. This is the start of the plummet of the economy. 

Recession

The high demand and supply for most items crash and the price is steadily falling. Producers of the high demand product continue making more and create a lot of supply with little demand, resulting in an excessive amount of goods in the market. Prices of items crash immediately, and many positive economic factors fall too.    

Depression

Everything declines below average and the rates of economic growth are negative. There is an abnormal increase in unemployment rates, many businesses are failing and inflation is at their highest point. The purchasing power of money is declining rapidly, and most products will have no value anymore. 

Trough

Trough is the most negative stage in the cycle, further decline happens until many products, factors, goods and services are at their bad saturation point.

Recovery 

After the lowest point, demand starts to rise due to the lower price for the items, resulting in an increase in  supply and capitalists. Employment and investment rates start to rise because of the increased capitalism and the economy’s growth rate is steadily rising. The economy shows many positive signals and rebounding till steady levels. 

 

What is the effect of the economic cycle? 

An unstable economic cycle is bad for the economy overall. The fast rising GDP period eventually leads to a high rate of inflation, resulting in a market where many things lose their value overtime. These inflationary growths also allow the market and economy to open to recession, making it fairly unsustainable.

   

Recessions cause a waste in many resources, and if the recession continues there will be a major loss in resources and productivity from laborers, making them leave the labor force and overall and may get discouraged. 

Investors and entrepreneurs will not decide to invest and lower the rate of investment, and because of the volatile rmarket and lower investors, the economy will have to result in a possibly longer recession and the long-term economic growth rates will decrease rapidly. 

Economic growth is judged based on the overall increase in income of the population. Goods and services are produced every single day and show a realistic measure of economic output within the economy. 

When the economy grows, the government will be allowed more income to fund more activities, infrastructure, shelter, etc. The more benefits the government gives out, the more money is in the economy leading to a gain of wealth. Creating wealth gives and distributes money into labourers, capitalists and employers. 

“For The Effective States and Inclusive development (ESID) Research Centre, economic growth is important as a means to fuel progress in social terms- including increasing well-being and equity- rather than increasing economic output as the objective itself”