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

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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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Anonymous 0 Comments

First off, this isn’t even a question. It’s just you making a really dumb analogy that in order to even discuss would require us to make horribly incorrect assumptions about the economy.

Recessions aren’t necessary. Depressions aren’t inevitable. The economy isn’t a forest.

Many of the big forest fires in modern history have been naturally occurrences. The increasing frequency is in fact connected to climate change which is in fact real and not a sign that the forest needs pruning. The forest is not an economy.

You didn’t even ask a question so there’s not really much else to say. You gave your opinion. Then you limited the discussion with a completely irrelevant analogy that was itself inaccurate in the first place. Nowhere in there was a question waiting to be answered.

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