Eli5 Are episodic recessions actually a necessary phenomenon for a healthy economy?

Question

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.

In: 69

Answer 1

If by healthy you mean the rich getting richer and staying that way then yes they are necessary, because otherwise the poors might actually have enough money to own property and have some assurances for their future and we can’t have that.