ECONOMIC RECESSIONS


In capitalism the period of economic growth was usually followed by economic recession. Later occurred when products could not be sold anymore. The main cause for recession was hyper production and the fact that in the market was overflowed with products which could not be sold and products stayed in warehouses. In such situation employers fired numerous worker what reduced the number of costumers and caused recession in many industrial sectors and even recession of many states. Numerous companies went out of business, while the number of unemployed increased.