Question

Difference between vicious cycle and virtuous cycle people as resource ch 2 eco

Answer 1

hi there,

A virtuous circle is one where multiplier effects reinforce the desirable impact of an initial change. For example, britain opened its borders to immigrant workers from new EU countries in May 2004 when most other old EU countries didn't. As a result several hundred thousand people migrated to Britain, nearly all of them employed people and for the most part younger adults. The initial effect was to boost GDP per head and economic efficiency in Britan and to boost net income from remittances for the people's countries of origin. As a result the UK economy has grown (a little) faster and with less inflation than it otherwise would have, theregfore encouraging more people to come over to the UK from E Europe.... and the cycle of effects goes round again, hence "virtuous circle (or spiral)".

A vicious circle occurs when negative effects reinforce negative impacts. For example, a business closes, putting people out of work. Because those people have no work, they cannot buy what they used to. So the local shops go out of business. Because the shops are derelict the local thugs smash their windows and soon the whole neighbourhood looks like a disused rubbish tip. Then new entrepreneurs are afraid of setting up business there or move out. So work prospects deteriorate even further. Bullies come to predominate in the local school, so people come out of school uneducated and angry. No-one wants to employ them. Work propsects for all become even less. There is an atmosphere of hopelessness, so even those who are bright and morally sensible and could work don't. Vicious circle

Thanks

Answer 2

Answer:

• The terms virtuous circle and vicious circle (also referred to as virtuous cycle and vicious cycle) refer to complex chains of events that reinforce themselves through a feedback loop. A virtuous circle has favorable results, while a vicious circle has detrimental results.