Economist Podcasts Growing pains: a recession in recessions
63 snips
Dec 23, 2025 
Callum Williams, a Senior economics writer at The Economist, explores the paradox of rare recessions and their hidden economic risks. He highlights Japan's lost decade, emphasizing the importance of productive recessions. Andrew Palmer, from the 'Boss Class' podcast, dives into the reliability of online reviews, suggesting that prolific reviewers are more trustworthy. Lastly, John Fassman, a Senior culture correspondent, shares fascinating insights from Baffoni Poultry Farm, illustrating how small farms support local communities and the pressures of holiday turkey processing.
AI Snips
Chapters
Transcript
Episode notes
Long Booms Hide Growing Costs
- Long stretches without recessions can build hidden economic costs even as growth continues.
- Schumpeterian creative destruction argues recessions reallocate resources to more productive firms.
Policy Determines Recession Outcomes
- Not all downturns trigger productive reallocation; policy and institutions shape outcomes.
- Japan's 1990s slump lowered productivity because banks rolled over credit to weak firms.
Fiscal Cushions Changed The Game
- Rich governments now favor big fiscal cushions to avoid recessions, which changed economic dynamics.
- That shift helped avert downturns but also encourages continuous intervention and higher deficits.