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Cutekannan

Are periodic recessions beneficial to the economy?

Are they a necessity in a capitalistic economy?
Ed:

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

Muttin':

Yes

Muttin':

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

Dredge:

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.

Sly:

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:

YES....it slows rapid and irresponsible spending down

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