
It is always tough to discuss economic crises with someone who lacks of basic knowledge of economics . To this end, I suggest the following link to refresh your minds before starting the discussion.
http://en.wikipedia.org/wiki/Kondratieff_waveIn this article, I explain the recent crisis with "Kontradiev Wave" theorem. According to Kontradiev, capitalist economies experience big economic boom-deep periods (waves) once in a 40-50-year period . Neverthless there is no exact explanation why and how this waves start. The only thing that macroeconomic data showed us, the waves repeat themselves in 40-50 years.Fortunately, historical data figure out some important explanations for this break points on the waves such as - Big World Wars,(1 and 2).- Big World Economic Crises( 1929 Big depression and the recent one).- Big technological advances or discoveries (Internet, Information technologies).So far, today's crisis can be explained by famous-heterodox theorem of Kontradiev. Put differently, the recent economic crisis is neither the end of capitalism nor the unexplained thing in modern economics. Although I am not discussing the reasons or faults that led the recent crisis, I am clearly saying that in macroeconomics it is normal to see such a big economic depression periods. In this regard, it is also not surprise to see an expansion period in upcoming years. To sum up, it is worthless to fear about the recent developments in the economies. But this doesnot imply that economic actors should wait or watch the developments in economies by assuming that the depressions are normal in economies. In contrast, they should focus on solving the fundemantal problems of their economies with bearing in mind that "invisible hand will clear the markets, likewise in the history."While economic actors and the governments are taking immediate actions in order to start boom period again, they should not distort the fundemental principles of "economics". This implies two things; first, they should not rescue the inefficient firms and companies, even though they are employing thousands of people. Second, the goverments should see the current crisis period as an opportunity to accomplish the big-fundemantal reforms such as social security,green energy reforms.Luckily, countries do not need huge financial packages to achieve these reforms but too brave,smart and patriotic economic actors.
