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

It’s easier to think of it as wealth being a fixed quantity. Wealth is squeezed from the ‘bottom’ and the ‘top’ bloats.