![]() ![]() ![]() Long Periods of Peace and Prosperity Lead to Short Periods of War, Poverty, and Chaos When the social-economic, values, and political differences are too wide, a revolution happens.Ī new internal order is introduced, debt is erased, wealth is redistributed, and the cycle happens again.Ĥ. The poor are getting poorer, the rich are getting richer, and the debt is getting bigger. The economy loses in productivity and attractiveness. They borrow money - not to invest - but to maintain their lifestyle. Now that people are comfortable, they’re no longer willing to work as hard as when they were poor. The economy takes a hit, so the government prints money to make everyone happy. Over time, lenders lend too much money to borrowers that aren’t capable to repay. They refund their debt with the profits and everyone gets richer - both the borrower, and the lender. In the beginning, the population is poor, the country has a low amount of debt, low social-economic inequalities, and people work well together.Įverything is pretty stable until debt is introduced.ĭebt enables entrepreneurs to build companies and create wealth. ![]() The economy itself is driven (or slown down) by debt and culture (people’s behavior). Empires get their power from the dynamism of their economy (which in turn helps them build an army). ![]()
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