@vikorr,
Recessions are NOT necessary.
Recessions are a result of greed at the top. And calls for more sacrifices at the bottom.
I literally want to hurt some governor or senator or congressman every time I hear the words, "In these difficult times." No, it's not a Manchurian Candidate trigger. I just hate that expression literally that much and hate the complete copout of for two years expecting people to put up with canned food at restaurants or bad service or long waits because everyone made the sacrifice but those at the top.
You have a recession because there are literally measures in place to prevent work (limits in people that can be in the building). You have a recession because you further limit customers to those who are masked and vaccinated, meaning staff is furloughed. Then when employees turn out not to want to be masked or vaccinated, you toss them and their jobs by the wayside. You cannot prove that this "disease" even exists (I have seen more sign of phytophotodermititis I currently suffer from than the vague symptoms listed under COVID), but you're okay with thousands or millions being out of work because they wouldn't cooperate with big statism. You have a recession even in the aftermath of COVID because some ppl are willing that economic restrictions stay in place even when ppl have largely stopped wearing masks.
No, these times AREN'T difficult. They're MADE difficult. And anyone blaming the right for things being difficult, **** you. They are more difficult because people won't talk across the political pew. They are more difficult because people at the top put the hamstring on people just trying to run a business. They are more difficult because small business owners like me ultimately gave up. It was too hard to advertise, too hard to travel, and I certainly couldn't pay anyone to help me.
Recessions are not necessary. Economic theorists think they lower inflation.
https://www.yoforia.com/who-benefits-during-a-recession/
Quote:In a recession, the rate of inflation tends to fall. This is because unemployment rises moderating wage inflation.
But inflation is not caused by an excess of workers or great economy. Recession's just a tightening of market, and we had a recession during the height of COVID (nobody hiring), but we also had a shortage in goods. Steeper prices at restaurants, but often poorer quality food (it wasn't until people balked at the restrictions that I saw some measure of return to normalcy, before that, restaurants that we ate at often had non-fresh food. For example, prior to COVID, a plate of nachos would have real chili, but after that, it tended to be like the soy-based mix that comes out of a dispenser at 7/11. Not kidding, and they'd demand roughly 1.5x markup in price).
You see, recessions have nothing to do with inflation. Inflation is caused by shortages. Supply and demand. As supply decreases yet demand remains fixed, prices rise. You can have a recession and inflation at the same time.
https://bigeconomics.org/how-a-labor-shortage-causes-inflation/
Huh, a labor shortage is a recession, but isn't that interesting, you economists said...
Quote:In a recession, the rate of inflation tends to fall. This is because unemployment rises moderating wage inflation.
yet here inflation is happening.
https://econofact.org/pandemic-shortages-and-inflation-from-empty-shelves-to-higher-prices
And again.
I once read an article that basically tore apart all theories of inflation besides scarcity. Neither excess of money, nor excess of spending, nor excess of employed (sorry, recession doesn't help), nor government debt, nor anything but the shortage of supply chain created inflation. In fact the article cited Zimbabwe as a key example. So what happened in Zimbabwe?
Well, let's read up about it in Wikipedia.
https://en.m.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe
Quote:From 1991 to 1996, the Zimbabwean ZANU–PF President Robert Mugabe embarked on an Economic Structural Adjustment Programme (ESAP) that had serious negative effects on Zimbabwe's economy. In the late 1990s, the government instituted land reforms intended to evict white landowners and place their holdings in the hands of black farmers. However, many of these "farmers" had no experience or training in farming. Many farms simply fell into disrepair or were given to Mugabe loyalists. From 1999 to 2009, the country experienced a sharp drop in food production and in all other sectors. The banking sector also collapsed, with farmers unable to obtain loans for capital development.
This should sound familiar. Why? Because Biden advocated for exactly this! Replace cureent farmers with untrained black farmers. Screw with food sources. No, it's not about them being black or racism. It's about no experience.
But we already had shortages due to screwy ststems in place during COVID, and instead of dropping them once Trump was out of office like a good little con artist job, he doubled down on this fraud. These difficult times are the "new normal."
Recessions are not necessary. Your theorists are wrong. And because they are wrong, actual people suffer. I know what a recession feels like, going from place to place trying to get hired. They told me the Great Recession were difficult times too. Bullshit. We cause difficult times. We make them worse by not standing against our corrupt leaders.
