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The good thing about a recession is that it trims down the bad companies, the ones that only survive because of inertia, and spares the good ones, the ones that
by Shorel 18y ago
The good thing about a recession is that it trims down the bad companies, the ones that only survive because of inertia, and spares the good ones, the ones that really deserve to grow.
In fact, several companies have made monopolies, virtual empires, precisely in times of crysis. No crysis = too much worthless competition, too much marketing noise.
- kenver 18y agoI really dont think there's anything good about a recession at all. When "bad companies" go down people lose their jobs, the economy takes a hit, social security costs rise and everyone hurts. I don't really understand what worthless competition is either. "Worthless competition" is surely a contradiction in terms. If they were bad/worthless they wouldn't be competing.
- Retric 18y agoThink about the http://en.wikipedia.org/wiki/Broken_window_fallacy http://en.wikipedia.org/wiki/Broken_window_fallacy if marketers get fired and become factory workers then the output of goods can increase. If factory workers are fired and become marketers the output of goods decrease. In total it matters what people are doing even if a person cares less about what their job is than the fact they have a job.
- Shorel 18y agoWhen I said 'worthless competition' I surely was thinking about General Motors and its total lack of innovation, compared with korean and japanese car companies.
- DanielBMarkham 18y agoAgreed. Recessions are good and a natural part of the business cycle. It's called a feedback loop. Business tend to grow and get fat in places they can't afford. Recessions come along and then everybody has to take a very careful look at just what jobs and expenses are really needed and what are fluff. The business cycle is a good and natural thing. I just wish we had more, less severe cycles than fewer, more severe ones.