Why Do Economies Crash Sometimes?

Imagine you're building a tower with blocks. At first, it's strong and tall, that's like an economy growing. But if too many people start knocking down the blocks at once, the whole tower might fall, that's an economic crash. It happens when things go wrong all at once, like people losing jobs or prices going up a lot.

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Examples

  1. A big company goes bankrupt, causing many people to lose their jobs at once.
  2. Too many people stop buying things, so stores start closing down.
  3. Prices of food and gas go up a lot all at once.

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