Recession & Depression | WHAT REALLY HAPPENED

Recession & Depression

Authored by George Friedman via Geopolitical Futures.com,

A recession is an essential part of the business cycle.

Among other things it culls the weaker businesses and redistributes capital and labor for better uses. It is painful but necessary and it ends as it began, as a function of a healthy economy.

Depressions are not economic events; they are the result of exogenous forces such as wars or disease.

Depressions are not a necessary culling but a byproduct of the savage destruction of these external forces, which not only disrupt but destroy vast parts of humanity and decency, along with the economy.

Therefore, the question of whether we are now in a depression or recession is not an academic question but the single most important question that humanity faces. We will recover from a recession. We will recover from a depression as well, but it will take much longer and involve far more pain.

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