ELI5: Explain Like I'm 5

Accelerator effect

Okay kiddo, so you know how when you go faster on your bike, it gets easier to keep pedaling because the momentum of the bike helps you push the pedals? That's kind of like the accelerator effect for businesses.

So when a company is making a lot of money and things are going well, they might want to use that extra money to make even more money. They might decide to invest in new machines, hire more workers, or start advertising more. This is the accelerator effect - the idea that when a company is doing well, they can invest more and make even more money.

Just like how it's easier to pedal your bike when you're already going fast, it's easier for a company to make more money when they already have some momentum. However, just like how it's harder to start pedaling your bike from a stop, it can be harder for a company to start investing in growth when they're not already doing well.

So, to sum it up, the accelerator effect is when a company uses its current success to invest in growth and make even more money, kind of like how it's easier to pedal your bike when you're already going fast.
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