Boom-and-bust is a term used to describe the cyclical pattern of economic growth and decline. It refers to the rapid expansion of an economy, followed by a sudden and severe contraction. This phenomenon has been observed in various economies throughout history, and it is characterized by periods of rapid growth and prosperity, followed by periods of economic downturn and recession.
Definitions
Boom-and-bust refers to the cycle of economic growth and contraction that is often observed in capitalist economies. During a boom, economic activity increases rapidly, leading to higher levels of production, investment, and employment. However, this period of growth is often followed by a bust, which is characterized by a sudden decline in economic activity, resulting in lower levels of production, investment, and employment.
Origin
The term boom-and-bust has its origins in the economic history of the United States. It was first used in the late 19th century to describe the cycle of economic growth and contraction that was observed during the country’s industrialization. Since then, the term has been used to describe similar patterns of economic growth and decline in other countries and regions.
Meaning in different dictionaries
According to the Oxford English Dictionary, boom-and-bust refers to “a cycle of economic expansion and contraction characterized by periods of rapid growth (boom) followed by periods of decline (bust).”
The Merriam-Webster Dictionary defines boom-and-bust as “a pattern of economic growth and contraction that is characterized by periods of rapid expansion followed by periods of decline.”
Associations
Boom-and-bust is often associated with the business cycle, which refers to the natural fluctuations of economic activity. It is also associated with the concept of economic volatility, which refers to the degree of variation in economic growth and activity over time.
Synonyms
Other terms that are often used to describe the boom-and-bust cycle include economic cycle, business cycle, and trade cycle.
Antonyms
The opposite of boom-and-bust is steady growth, which refers to a period of sustained economic expansion without significant fluctuations.
The same root words
The root words of boom-and-bust are “boom” and “bust.” “Boom” refers to a period of rapid growth and prosperity, while “bust” refers to a sudden and severe contraction.
Example Sentences
- The economy experienced a boom in the 1990s, followed by a bust in the early 2000s.
- The housing market was in a boom phase for several years, but it eventually led to a bust.
- The country’s economy is currently in a boom phase, with high levels of employment and investment.
Boom-and-bust is a term used to describe the cyclical pattern of economic growth and decline that is often observed in capitalist economies. While it can lead to periods of rapid growth and prosperity, it can also result in sudden and severe contractions that can have negative impacts on individuals and businesses. Understanding the causes and effects of the boom-and-bust cycle is an important part of economic analysis and policy-making.