Just Because You Call It a Recession Doesn’t Make It One

ABOUT US : Collapsed
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Just Because You Call It a Recession Doesn’t Make It One

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Drew Matus
JUN 14, 2021

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Recessions, though painful, can have positive longer-term effects on economies through the process of creative destruction. Weak, unprofitable (and unproductive) firms go out of business. Workers at those firms and at others where they were not employed to good use, are pushed into a labor force whose demand is driven by the surviving, stronger, more profitable firms. In short, the economy post-recession is typically better than the economy heading into a recession.