Supply, Demand and Playground Economics

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“The economy, stupid,” said James Carville as one of his campaign messages devised for Bill Clinton’s 1992 Presidential Campaign against incumbent George H.W. Bush. It was a simple and effective message to focus on how many Americans cast their vote. The economy was in the midst of a recession, and no one likes when the economy is doing poorly. More recently, we experienced what has been dubbed “The Great Recession.” It lasted from 2008 to 2012, and was one of the most significant economic declines that the United States has experienced since The Great Depression. The Great Recession brought many terms to the forefront as the Federal Reserve and the Federal Government implemented steps to try and stop the economic slide and kick start the economy. Big terms were talked about regularly like quantitative easing, monetary policy, sub-prime mortgages, GDP contraction, etc., but for the average person these terms and their associated impact are as foreign as rocket science. …Read More.