People usually think recessions are bad. Are they in fact necessary? Akin to naturally occurring small forest fires…those are good otherwise there could be a mega fire.
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Not really, but it depends what you mean by recession. The classic English recession of two negative quarters of GDP growth is not necessary in a functioning economy. It only means that the government failed to quantify and hedge some risk. Inevitable, maybe, but necessary, no.
The American notion depends on the availability of credit, availability of jobs, gdp growth, and other factors. It is patently an unhealthy economy when in an American recession. Getting a cold doesnt mean youre healthy, and neither does having a recession. Ebbs in the broad market across diverse sectors happen all the time, and that’s what makes the economy healthy. Jobs go here, jobs go there, credit goes everywhere but some places more than others. When that malfunctions, it means the government failed to quantify and hedge some risk.
The communist/marxist/socialist notion of recession is not described in the literature, and there is still some argument there about whether money is a social construct that should be avoided. Hard to quantify an economy without it, but I wish them luck!
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