Source: Cobden Centre
by Dr. Frank Shostak
“Contrary to KP, an economic boom is not about economic prosperity and wealth generation, but about the diversion of resources from the wealth generating activities towards activities that consume and do not produce wealth i.e. undermine the wealth generating process. Or we could say that an economic boom gives rise to activities that are engaged in consumption, which is unbacked by the previous production of wealth i.e. non-productive consumption. If for some reason the diversion of resources is arrested, various non-productive activities that sprang up as a result of this diversion come under pressure i.e. an economic bust emerges.” (07/07/26)
https://www.cobdencentre.org/2026/07/technology-shocks-and-boom-bust-cycles/