ABSTRACT
This chapter discusses the building blocks into a complete and transparent structure that unlocks the cycle's mystery. It covers a strong expansion comes to an end in a new recession; a recession begins; a normal recession becomes a recovery; and some downturns become very long-lasting, deep recessions. The global economy of capitalism is defined as private ownership of businesses with the hiring of employees to do the production. The strongest rates of economic expansion occur in the middle of the expansion period. The basic institutions of our present economic system make this fall inevitable in each expansion of business. Given the structure of the economy, when productivity rises, the increased income accrues to the owners of the business or corporation, not their employees. Classical exogenous theories have dominated most of the history of macroeconomics. Consumer spending is the largest part of all spending on the gross domestic product.
