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NOTE Why is the industrial market economy so often blamed for the busts in business cycles?

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Two things were happening, two important events happened, events of long-term importance,

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happened during the period of the mid and late 18th century when this change happened,

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when we began to get these wave-like expansion and contraction patterns.

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One event in the Industrial Revolution, in the mid and late 18th century in Great Britain,

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starting in Great Britain, spreading to the rest of the world slowly but surely, so to speak,

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became the industrial market economy.

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And so one school thought, and this is not just the rest of schools thought, but in this,

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one group of writers or economists thought there must be something deep within the market

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economy structures, deep within industrial capitalism, the cause of the business cycle,

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the cause of the booms and busts.

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That was one group of writers.

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And there were several subsets of this, trying to identify which particular aspect of the

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market economy will lead to the rest of this.

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And another group, much smaller group, said that there was another institution that began

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around the same period, again starting in Great Britain and spreading to the rest of

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Western Europe and the United States, which also might be a cause of this problem.

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and that is the institution of fractional reserve banking and particularly central banking.

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The banking system, the fractional reserve banking system also begins around the same time.

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Here you have a situation where two things are happening, so coincidences occurring, A and B, which causes it.