How the Economic Machine Works
Ray Dalio's simple framework for thinking about the economy.
![How the Economic Machine Works](/content/images/size/w1200/2023/01/5f6f1aff5d0b3065896e1b13_markus-spiske-2VMcpbUR6w8-unsplash.jpg)
In this video, Ray Dalio lays out a simple framework for thinking about the economy.
In his eyes, it is prudent to overlay the short-term debt cycle on the long-term debt cycle. Once you’ve done this, take the two cycles and place them on the (generally less volatile) productivity growth line.