How can a recession see a drop in profits and a rise in poverty? Where does all the money go, if not to the businesses or people?

Question

How can a recession see a drop in profits and a rise in poverty? Where does all the money go, if not to the businesses or people?

In: 6

Answer 1

Just commenting to say this is a great ELI5 question. A bit of economics is hard to grasp initially unless someone explains it for you.