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Are periodic recessions beneficial to the economy?

Are they a necessity in a capitalistic economy?

Yes...all healthy ecosystems (including economic ones) have cycles of growth and retreat. It's the circle of life. Natural and healthy.




It causes those who spend liberally to step back and be conservative again.


I do not believe so. However, if you are eluding to the 'rebound' affect, possibly. A simple analogy to tease the brain. When making cookies, is it beneficial to stop for a few days before actually baking them?

Porkenstein AKA Pork, Porky, Porkens:

Actually they are good for long term investors. If you use dollar cost averaging over a period of time with the economy going up and down, you wind up with a lot more money in the end versus a steadily growing economy.


IMVHO-It is said that history repeats itself and nothing is new-so-if you look back you could say-been there done that.

[email protected]@NCH:

the only way to help a reccession is to spend and invest...

Studentcredit: slows rapid and irresponsible spending down

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