Vilja Ruotsala
Sep 4 · Last update 21 days ago.
Will there be another economic crisis, if so when?
The last economic crisis happened in 2008 because banks gave too many mortgages to people with low credit, and the people couldn’t pay back to the banks. Nowdays there are lots of advertisements for quick loans which are expensive in the long run. Do you think this will be the root cause of a new crisis?
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Donald Trump deregulation policies are making another economic crisis more likely
1 agrees
0 disagrees
Unless efficient resource management is mastered economic crises will become increasingly common
1 agrees
0 disagrees
An economic crisis is debatable, an economic recession is overdue
1 agrees
0 disagrees
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Donald Trump deregulation policies are making another economic crisis more likely

The 2008 financial crisis that lead to the Great Recession was caused by deregulation of banks that arguably stems from the 1980’s with the Economic policy of leaders such as Ronald Reagan and Margaret Thatcher. Following the recession the Dodd-Frank Wall Street Reform and Consumer Protection Act was passed in 2010 to regulate the US financial services industry. However a law proposed by the Trump Administration has been passed in 2018 reducing financial regulation and effectively undoing many of the provisions passed under the Dodd-Frank Act.

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Unless efficient resource management is mastered economic crises will become increasingly common

The whole world market system will inevitably undergo economic crises on a world of finite resources. At the moment corrupt trading practices, and diplomatic or violent confrontations lead to economic crises. But in the future, with looming anthropogenic climate change proving increasingly responsible for climate disaster, economic crises will have additional causes. In addition, considering that environmental disaster and conflict around diminishing resources can easily lead to more corruption and violent confrontations, these new causes will likely feedback to make economic crises more prevalent.

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An economic crisis is debatable, an economic recession is overdue

Cycles of or market growth and slumps are the normal nature of markets and a recession is quite a normal thing, the 2008 global financial recession was a special case due to new lending practices that bypasses the ordinary mechanisms for regulating mortgages. Recessions of some kind usually occur every 8 to ten years. Will there be a recession again? Yes, that is to be expected. Will there be a global economic crisis again? That depends on the banks lending policies and having mechanisms in place to discourage unrealistic lending practices.

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