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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Yes in a healthy economy you will see constant growth but it will be marked by times of less growth or even a pull back. While in theory supply and demand graphs have an unlimited curve so that a long as supply goes up price and demand goes down. In reality there is a finite point to all of these items. When demand ships because there is to much supply eventually we stop making it this prices rise when prices rise it becomes more expensive to buy things so people buy less thus inflation.
In a truly laisezz fair economy with no intervention we see long periods of growth followed by long periods of recession. Where we get into problems is utilizing government intervention to slow dollar supply which creates more extremes but cycles.
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