Cyclical Causation

Cyclical causation refers to a situation where two or more factors influence each other in a loop, creating a continuous cycle. For example, increased demand for a product can lead to higher production, which then boosts employment and income, further increasing demand. This ongoing feedback loop can sustain or amplify trends over time. It’s different from cause-and-effect happening in a straight line because each factor both influences and is influenced by the other, creating a repeating cycle that can be self-perpetuating until external changes intervene.