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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What happens is that when business is going well, people bet everything on expansion. As much as possible, as fast as possible, at major costs to efficiencies. Dead weight piles up until boom turns to bust. Then you have a contraction phase where everyone tries to survive and shed inefficiencies in the process.
Recession is a direct result of preceding boom times. To not have recessions, you also need to not have rapid growth phases. It is possible in a generally stagnant economy, but it’s not exactly better that way.
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