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

“The economy” means “money moving around”. If the economy is “growing”, then more money is moving around.

In a recession, less money is moving around.