Objective
Teachers will be able to:
- Examine historical examples of the role of both corporate and household debt in previous economic recessions/depressions.
- Compare and contrast the levels of household and corporate debt going into the recent pandemic, and discuss policies that could be used to reduce further risk.
Standards
In this economics webinar, explore the historic role of debt in the business cycle, and see why it is both risky and necessary.
Description
Household and corporate debt played a significant role in the buildup to the last recession, and since that time, business and personal debt — student loans, credit cards etc — have grown considerably. This cycle has been repeated throughout history.
We will look at lessons and activities that show how business and personal finance planning, along with reimagined policies, could be employed to reduce the risks of future debt, as even though borrowing and lending are tenuous by nature, they are critical to a strong economy.