4 ms·
This is one of the most insightful comments I’ve seen for awhile. Perhaps this is why low wages tend to create recessions as inefficient businesses start to fai
by rdlecler1 8y ago
This is one of the most insightful comments I’ve seen for awhile. Perhaps this is why low wages tend to create recessions as inefficient businesses start to fail. One could argue that these system stressors act as a cleansing agent.
- azernik 8y agoThis is actually a pretty common interpretation; Google "positive effects of recessions". Also, all kinds of stressors can create recessions - from a supply shock (the sudden increase in oil prices in 1979 forcing the US economy to restructure to adapt), to a demand shock (a sudden drop in consumer access to credit in 2008), to sudden shifts in the type of demand (both WWI and WWII ended in steep, short recessions during the switchover from wartime to peacetime production).