What is another reason land based industries are collapsing?
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Answer:-
While there are many answers to this question, I’ll confine my answer to economic causes of the type we’ve experienced over the last couple of hundred years. In general the reason is overproduction. When events are such that prices are high, labor cost low, resources plentiful, and good return on investment can be expected, everyone tries to cash in and produce as much as they can as quick as they can. This in turn leads to the markets being flooded and resources being exhausted. So, prices collapse for the once booming industries. Financial institutions who are heavily invested in those industries collapse as well and there’s no investment money to save the day. All that’s left is denuded forrest, polluted rivers, overgrazed land, barren pit mines, toxic waste dumps, crumbling smoke stacks, rusting plants, unemployed masses, etc. Why can’t our political and economic institutions forsee these tragedies and regulate our avarice? I think that’s the question but I don’t have a glib answer. This election is certainly underlining the problem, not posing any solutions.
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Aleksandar Stanic
Aleksandar Stanic, Co-Founder at Afterhours Dropshipping (2015-present)
Answered Sep 23 2016
Here is (US) economic crisis in a nutshell:
People use mortgage to buy family house
Mortgage becomes easier to get from banks
Banks have more mortgage victims = more cash flow
Some cannot pay it off, banks gets the house and sells it
Now, since everyone can get mortgage, and loans are bigger than ever before - huge number of people cannot pay off their mortgage
More and more houses are selling by banks every day
Houses supply becomes greater that demand
Houses start decreasing in value
Those who got $300.000 house, willingly stop paying off mortgage because now that house is worth $100.000
Enormous number of houses are available for buyers, but there is not enough buyers
Banks’ cash flow stops
Banks go bankrupt
Stock market goes down
People lose their homes, money and crisis begin