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How does the notion of social structures of accumulation relate to the notion of long swings in economic activity? What makes it different from just a business cycle?
How does the notion of social structures of accumulation relate to the notion of long swings in economic activity? What makes it different from just a business cycle?
Expert Solution
The social structure of accumulation (SSA) is a set of established institutions to measure the expansion and contraction periods. The primary objective of evaluating the long waves in a business cycle is determining the overall capital accumulation. Long swings occur as a result of capitalism in which capitalists require substantial labor supply to make profits. The social structure of accumulation and long swings are measured in an extended period, typically fifty to sixty years, reflecting overall economic growth. Business cycles are real phases caused by economic changes that result in contraction and expansion hence the difference.
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