Boom
A boom is a period of economic growth that is characterized by increased production, increased consumption, and increased investment. It is usually accompanied by a rise in asset prices, such as stocks and real estate. Booms are usually followed by a period of contraction, known as a bust. Booms and busts are part of the business cycle, which is the regular pattern of economic growth and contraction.
History of the Term
The term “boom” was first used in the early 19th century to describe a period of economic growth. It was derived from the Dutch word “boomen”, which means “to grow”. The term was used to describe a period of rapid economic growth in the United States in the late 19th and early 20th centuries. This period was characterized by a surge in industrial production, increased investment, and rising wages.
Comparison Table
| Boom | Bust |
|---|---|
| Increased production | Decreased production |
| Increased consumption | Decreased consumption |
| Increased investment | Decreased investment |
| Rise in asset prices | Fall in asset prices |
Summary
A boom is a period of economic growth characterized by increased production, increased consumption, and increased investment. It is usually followed by a period of contraction, known as a bust. Booms and busts are part of the business cycle, which is the regular pattern of economic growth and contraction. For more information about booms and busts, you can visit websites such as Investopedia, The Balance, and the Federal Reserve Bank of St. Louis.
See Also
- Business Cycle
- Recession
- Inflation
- Deflation
- GDP
- Unemployment
- Monetary Policy
- Fiscal Policy
- Interest Rates
- Stock Market
