Friday, January 20, 2012

Violence In Economics

The recent Recession is a prime example of how the slightest bit of anxiety in the markets can have drastic effects on politics and the economy. Capitalistic economies are inherently unstable, and frequently go through cycles of gain and loss. Often, rapid upswings in the economy only lead to worse downturns, due to the "crisis of surplus capital." The Crisis inevitably results when a small portion of the populace accumulates so much excess wealth, that there is nowhere for that money to go except into further investments. This creates a sort of feedback loop - which inevitably results in an economic bubble. These bubbles bursting flawlessly predict economic suffering. The fallout from these burst bubbles are also a direct contributor to the sort of panic that pervades poor times for the economy.

As economic leaders begin to panic, those feelings of fear flow into the common citizen as well. The chaos at the start of the Great Depression is the worst example of this in history, but even today the Tea Party and Occupy movements demonstrate this. It is these panicked citizens who stand the largest chance of turning riotous or violent, since they often see no other way to fight back against the threat of economic failure, or even draw the attention of those in power.

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