The Recession We Need To Have
Economics Explained
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Economic Downturns Cause Demand and Supply Side Issues
Economic downturns act as an impetus for the weakest businesses in an economy to fall to the wayside. These same down turns also create new opportunities for businesses which are robust enough to make it through. If a car manufacturer goes out of business during a down turn, they will be forced to liquidate their machinery and lay off their staff. That is capital and man power that can be utilized by a company that was able to survive this down turn. At worst, this will facilitate investment into bad businesses that don't make economic sense.
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