+1 vote
asked ago in Current Economic Issues by (2.3k points)
edited ago by
The Growth Trap can be divided in
two main causes. These factors concern the lack of consumption caused by profits, savings, imports and productivity increase. The Growth Trap is the main factor that leads to business cycles, which has been hidden until now. Sustainable Capitalism can avoid business cycles and lead the economy to full employment.
https://1drv.ms/b/s!Ap5alRvO4PEGhgT4oT2HsBdzizdz?e=mHfgWL                                                                                        Ryan McConnell, 2020.
commented ago by (2.3k points)
edited ago by
I developed at the beginning of my investigation a system of compensation between countries as a possible way to compensate exports and imports. Part of the multiplier or spending is not necessary, so it would be redirected to foreign economies. If exports are a great part of the national economy it can lead to the exporters trap. So a good way to stabilize the national economy is a higher tax on profits redirected to other countries. I'll explain all of this in my next professional paperwork about the Exporters Trap. Everything would be in equilibrium.

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