Stagnation is a state of the economy that got its name from Latin Stagnatio (immobility, stop). The essence of this term is that the economy after the progressive state passes in the period of stagnation, in which weighty changes do not occur. This time segment can last from month to several years. It is accompanied by an increase in unemployment, a decrease in living standards and business activity.
At this time, each of us at least once had to hear about stagnation. Many due to ignorance of this term may not fully understand the meaning of the article or news. Explain the essence of the concept with simple words is not so difficult. After certain events, the economy seems to be "dorm", which leads to crisis phenomena.
This term is found in other industries. In psychology, stagnation means the slowdown in the cultural development of society or the deliberate infringement of a certain class of people who wish to expand their horizons. Such actions are characteristic of authoritarian regimes.
In the field of ecology, stagnation means difficulties in the admission of oxygen in the reservoirs. But still more often this concept is found in an economic context. Stagnation will never give positive results, as the economy should develop, switch to a new stage.
Modern economists allocate two types of stagnation.
Monopolism is characterized by the Natius of sellers or manufacturers in the market of a certain country, which are combined to suppress competing organizations and establish control over pricing. As a result, the lack of competitors leads to a slowdown, and then to the construction stop. Manufacturers are not focused on the quality of their goods, trying to increase turns and increase its number - the client and so buy the proposed range.
One of the most striking examples of monopolistic stagnation can be called the Great Depression of the US economy in the 30s of the last century. The overproduction has slowed development and led to a decline of the economic system, poverty and poverty reigned in the country. In power stood monopolists who received comprehensive support of the government.
The consequences of incorrect management decisions, from which no government is insured, with time summed up and converted into transitional stagnation. It is identified with the outflow of capital and minimizing production rates. After the collapse of the USSR, almost one state (the former member of this association) could not be avoided by such an unpleasant phenomenon. Stagnation of large production facilities, a stop in scientific development, an outflow of specialists abroad, a decline in business activity - these and other negative consequences applied to all former countries of the Union. The previous logistic connections were violated between production sectors, as a result, the manufactured products were poor-quality and non-competitive.
Council: Whatever the stagnation period, when searching for solutions to exit it, you need to take into account the specifics of the region.
The crisis in development is important to predict, but stagnation refers to such phenomena to which cannot be prepared. It is impossible to name 2-3 reasons for stagnation, to determine its approach in news reports or the statements of the government. Unfortunately, it is possible to see it only when it has already come.
Circumstances that may be displayed on economic development and lead to stagnation:
The results of stagnation are obvious - a decrease in the incomes of the population, unemployment, the lack of innovative development. Such a situation leads to dissatisfaction, which develops in revolution, strikes, replace power.
When minimizing production processes, the cost of natural resources is reduced. The only sphere that practically does not change is the entertainment industry. Such a tendency is not surprising - against the background of financial difficulties, the people are trying at least somehow "do not fall in spirit."
To overcome the serious consequences of stagnation in Russia and the conclusion of the economy to a new level, the Government should develop a new development program, revise the strategy of activities, find the reasons for stagnation in the economy and restructuring.
As a rule, to eliminate the reasons that led to stagnation are taken by the following measures:
Important: The authorities of a certain state, which dwells in stagnation mode, should carry out a deep analysis and find the only effective strategy based on all economic components.
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Stagnation is a phenomenon that is characterized by a low rate or lack of growth in industrial and trading activities, a decrease in business activity and the standard of living of the population. These processes are difficult to stop, they can start the country into a deep crisis, therefore, at the time of determining such a situation, measures should be taken to eliminate negative phenomena.
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- This is the state of the economy of a single country, in which there is a gradual decline in its level of development and extinction in the future.
Distinctive features of stagnation - stagnation of production and problems with the implementation of goods and services over the large time interval. This process is quite often an increase in unemployment, as a result of which the average wage indicator and the overall standard of living is reduced.
The appearance of stagnation requires cardinal measures to implement possible metamorphosis, without which it will be very problematic to find a way out of the current situation.
This stagnation in the economy is expressed in the maximum low GDP growth rates (). It should be noted that in such a period the structure of the economy is not subject to fundamental changes, which are due to scientific and technical progress.
Not always stagnation is accompanied by a high level of inflation. But provided that this process takes place in a separate case, the stagnation will be called . Ultimately, the profitability of investment will gradually tend to reduce.
According to some statements one of the reasons for the occurrence of economic stagnation is the exhaustion of its growth factor. To resolve the situation, it is recommended to invest in new directions. Otherwise, breaking out of stagnation will be very problematic. This is due to the fact that to resume economic growth to significantly increase government spending, while allowing a consistently high level of state budget deficit. The rate of economic growth is falling to the level of 2.5-3% per year.
Stagnation phenomena have a direct impact on various areas of economic life. In particular, the level of average income is reduced by a separate family. In addition, general production indicators tend to reduce. Within the same country, all this steadily leads to the exhaustion of cheap and easily accessible growth resources in the form of significant technological advances, new lands, and immigrant influx.
As for various variations of stagnation phenomena, they can be monopolistic or transient. Each of the named species has a different origin, form of manifestation and, as a result, various ways to overcome.
Monopolistic stagnation occurs with the total domination of monopolistic associations that are interested in eliminating direct competition. As a result, economic stagnation occurs, covering primarily the field of production, where monopoly is observed. To resolve the current situation, there are several ways:
Regarding the transitional type of stagnation, the reason for its occurrence is a gradual transition from one type of economy to another. If, as a result of this process, a number of economic errors and neglect of the elementary laws of the economy are allowed, the ultimately one can expect the manifestation of stagnation. At the same time, there is a sharp decline in the production and decay of investment activities.
In addition, the physical destruction of the productive forces and the depreciation of the motivational incentives of effective labor is carried out. It is also impossible to quickly integrate the domestic goods into the system of the international market due to insufficient competition.
The stagnation of the country's economy is usually accompanied by a complete stagnation of trade, industrial, investment processes; Rising unemployment and reduction in the standard of living of the population. Causes may be:
Do you feel the depressed, sank, who stopped in their development? Or a pond near your summer cottage and turned into a swamp? Or maybe you have fallen legs and the veins are expanded on them? All these at first glance unrelated things have one common line - they can be called one common term "stagnation".
The word "stagnation" occurred with his sound, like many other words in our lexicon, from Latin language. Initial option stagnatio. Mean "Still," The same term, in turn, occurred from the term "Stagnum" - standing water. And here is the connection with the very dacha pond, which overgrown with a rich and reed. Standing water immobility is very suitable for describing completely different processes and conditions than and used medieval scientists who used the words of the Latin language as scientific terms. Here are just some of these situations:
Many completely different values, but all of them are combined with one common feature. Stagnation is always a slowdown or complete cessation of a process that went and, supposedly, would have to go further continuously, but was heated by any insurmountable external forces, or by its own internal processes. Now consider the above states in more detail.
For any reservoirs, one of the important factors of the "reservoir health" is the saturation of water with oxygen. The rapid flow of the river, driving in the pond, groundwater, constant stirring of water at the surface - all this brings oxygen into water, necessary for living organisms. However, it happens that the river changes its direction or the pond loses its underwater sources. In this case, the remaining water not only does not go anywhere from the lowlands cut off from other streams, but also stirres, stops stirring. The oxygen content in the water drops sharply, which leads to reduce the number of living organisms and further urban and tina reservoir. As a result of stagnation, the reservoir turns into a swamp - there is a natural change of ecosystem in this area.
In natural condition, blood according to the arteries comes in limbs and with the same speed and quantity leaves from there on the veins - it is obvious even a child. But sometimes it happens that something interferes with blood outflow:
In this case, the stagnation of venous blood is formed - slowing down blood flow in extended veins, which leads to swelling, sinushesity, visual visibility of the veins on the surface of the skin. This stagnation is very dangerous, as it can lead to thrombosis.
Economic Development is a continuously running process to which many factors are influenced, often entering into direct opposition with each other. Each participant in the free market craves profits and to achieve maximum profits each competitor strives for a monopoly. Having reached the seizure of large volumes of the market, this member seeks to consolidate, fix its position, extruding competitors and refusing reforms and risky innovations. Such behavior leads to a slowdown in the rate of production and an increase in unemployment. In the end, the snow commeasure leads to economic depression - a decrease in the standard of living of the population, and, as a result, further reduce the rate of economic development. In other words, the money is stagnant. Exit from such an economic stagnation requires external regulation and restructuring - bold and decisive innovations in terms of technical progress, risky investment in new ideas and access to foreign markets.
The person is a social being and with the course of life a person has to constantly develop in order to keep up with the community. Usually the process of human development, whether psychological or social, occurs naturally, due to natural curiosity, healthy ambitions and the congenital desire of a person to self-actualization and self-realization. However, sometimes this process fails or is suppressed by external forces - a state or environment. As a result of upbringing, propaganda or direct violence, a person may lose his healthy desire to grow continuouslyWhat can lead to depression - Stast of Personality.
If you want to understand that it is hidden behind the term "stagnation", which is such simple words, this article will help to understand what its causes and consequences are.
What is the stagnation of a simple language? The term is used to characterize the period of prolonged stagnation in the country's economy. There is no growth or falling production. Business activity freezes. At this time, nothing changes in science and technology, the unemployment is growing, the standard of living of the population is reduced. Stopped development of economic and financial industries is accompanied by inflation.
As a rule, the stagnation follows a recession - production decline. The growth indicators of the gross domestic product are extremely low or close to the zero mark. The national economy during this period does not change the structure and is not capable of adapting to what is happening.
About the "stagnation theory" is known since the 30s of the twentieth century. The American economist Murray gave an explanation to the definition of the term "century-old stagnation" and proposed ways to solve the problem. He believed that America should be agreed with a budget deficit in those years. And it turned out to be right. Already at the beginning of the 40s, the United States economy began to grow. Later about this theory of stagnation forgot. But not for long.
Is the stagnation for a simple person, and what are her consequences? An analysis of the history of the housekeeping of different countries indicates that the more successfully the economy develops longer, the longestness is stagnant leading to a deep production decline and crisis issues. The incomes of the population fall, people are worried about their savings.
7 main prerequisites for stagnation
Distinguish 2 types of "stabilization of the economy"
The recession speaks when the level decreases as much as possible and almost all economic and financial indicators deteriorate. Plus, during the recession, unemployment grows sharply, the amount of investment deposits in fixed assets decreases. Simply put, this is a slow, but progressive decline in production and economy as a whole. It is quite negative, but not considered a critical phenomenon. This vested process is constantly repeated. It is inevitable for the economy of any country.
The prolonged period of recession leads to a gradual cessation of lending, the fall in production production volumes, problems in financial spheres. Because of the increase in prices and depreciation of the national currency is carried outdevaluation . It is possible that the decline in the economy of one state may cause recession in other countries, which causes the global economic crisis.
Stagnation and recession indicate that there were errors in public administration and budget planning. It is they who become the reasons for financial problems and real complications in the state economy. The severity of the consequences of any economic phases depends on the flexibility of the state's government solutions and a properly calculated course to prevent the crisis.
Competent programs are able to influence the improvement of economic development. Conversely, the inaction of the state management bodies, the wrong policy or force majeure circumstances in the form of natural disasters, political coups can lead to a crisis.
Some experts predict that the Russian economy in the second half of 2016 is waiting for the most difficult period. The leadership of the country is stiguously looking for solutions in order to minimize the negative consequences of sanctions and falling oil prices.
According to other analysts, for the Russian Federation, the leap year will pass under the sign of economic growth.
So what differs from the recession stagnation - what is it simple words? If you define these economic phenomena in one word, in the first case, this is a slow decline, and in the second economy. Understanding their difference, it is easier to perceive these difficult periods from a moral point of view.
The term "stagnation" is almost always used in a negative context. No wonder. Despite all the charms of the clutch in the economy, such a state of affairs threatens to turn into a crisis for the state. What is the stagnation of simple words?
Stagnation is a position in the economy, in which in production and trade is stagnant for a long time. From the part, the situation may look controlled and even perfect: let no sharp takelets, but there are no crises either. In fact, everything is wrong. When stagnation, the future crisis is just brewing. After all, economic life needs impulses for development.
If you try to explain this phenomenon in a simple language, you can compare with a person who, instead of solving many problems accumulated from him, suddenly goes to bed. And in the end he sleeps for so long that when he wakes up, discovers: problems have become even more, and some of them moved into the category already intractable.
The theory of stagnation was first developed in the United States in the 30s of the last century by Economist E. Hansen. To describe the crisis situation in the country, he introduced the concept of "age-old stagnation".
Stagnation refers to phenomena that are obvious only when already occur
Depending on the causes of the economic cluster, researchers allocate two types of stagnation:
Two types of stagnation have a whole complex of common reasons:
It is not worth discounting and such reasons for stagnation in the economy, as the problems of a separate state in international relations and an erroneously chosen political course.
Out of the second type of stagnation, you can call it into recession on the background of receipt from the border of new products and services.
The most vivid examples of stagnation in the 20th century were stagnant in the United States after the Great Depression and the Russian Example of the 80s - the completion of the Soviet era and the beginning of the restructuring.
The term "stagnation" is used and environmentalists. So they call the reservoirs in which the intake of oxygen is difficult. For a pond or lake stagnation does not promise anything good: inhabiting their organisms are beginning to die, water turns into a medium for breeding hazardous microbes, and the water surface is covered with a thick and viscous tina.
Economic processes are similar to natural. Stagnation in the economy leads to exactly the same consequences. All stops: production development, income growth, improving the quality of life and services. Problems are growing like a snowball. A mass discontent occurs in society, which threatens to turn into real unrest. And for the country it is no longer a joke, but a signal - It's time to do something with stagnation. Rebuild work, fight corruption and nonprofessional, invest in science and production. And back - more actively go into world space, expand sales markets and become competitive.
The word "stagnation" appeared from the Latin "Stagno", which means "stop". Of course, sometimes such a pause is even necessary, to take a break in something is useful. It is important to start moving on time again, because, as you know, it is life.
