Why is there always recessions every 5 or 10 years?

Question

Why is there always recessions every 5 or 10 years?

Answer 1

2 words Federal Reserve.

Answer 2

Everything has a cyclic nature.  In economics, because of greed and fear, things tend to be overbought and oversold.  So when they hit their peak and people can no longer keep going in the same direction, the tide turns and heads the other way.  For example, when prices become too high because of too much growth, people and businesses back off and the economy slows.  This feeds itself and things spiral downward until everything is so cheap that businesses and people start to buy again.

Answer 3

by F C is correct, but folks mostly don't even understand the Federal Reserve, so they need a little more.

Folks, it's not complicated.  It's simply that congress long ago created the Fed and allowed it to control and manipulate the money supply.  So we go between inflation and recession/depression.

That game is taking us down the tubes this round.