Vicious Circle Theory

Vicious circle theory describes a negative feedback loop where a problem worsens itself through a series of connected causes and effects. For example, in economics, a recession can lead to reduced spending, causing businesses to earn less and lay off workers. Higher unemployment then further decreases overall spending, deepening the recession. This cycle continues until external intervention or changes break the pattern. Essentially, it illustrates how a problem can perpetuate and intensify itself without intervention, creating a self-reinforcing downward spiral.