Pork cycle
In economics, the term pork cycle describes the phenomenon of cyclical development of goods offered, which was first observed at pig markets. When prices are high more investments are made. However their effect is delayed due to the breeding time. Then the market becomes saturated which leads to a decline in prices. As a result of this production is reduced but the effects take a long time to be noticed but then lead to increased demand and again increased prices. This procedure repeats itself cyclically. In a figurative sense this concept is used for similar procedures in certain labour sectors: high salaries in a particular sector lead to an increased number of students studying the relevant subject. When all these students after several years start looking for a job at the same time their job prospects are much worse which then in turn deters students from studying this subject.
See also Feedback Oscillation
|
