Structural upheaval

A structural change that occurs suddenly, i.e. unexpectedly and unpredictably, and is almost always associated with severe disruptions in the financial market. – This occurs above all when consistent shifts in shares between economic sectors and industries caused by the market mechanism are prevented. The longer regulations leading to a distortion of competition delay or even prevent an adjustment to market forces, the more drastic the structural upheaval tends to be. These include, above all, plant closures and mass layoffs, which cause political tensions. – Over time, the productivity (ratio of factor input to output) and cost effectiveness (ratio of costs to output) of the protected industries increasingly deteriorate. Consumer displeasure increases, and foreign competitors seek a stronger market presence. This eventually leads to the undermining or removal of protection (protection) for the industries. – See Greece crisis, shock, subsidies, rigidities, structural.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/