During economic booms, many weak or inefficient companies survive because money is cheap and investment flows easily. A recession forces businesses to become more efficient or shut down. Companies with bad models fail, while stronger and more innovative ones survive and take their place. This process can reset inflated markets, reduce wasteful spending, and eventually create a healthier and more productive economy in the long run—even though the short-term pain, such as unemployment and business closures, can be severe.
2 Likes
Yes, it is a fact and we should all look at it
Yes, it is a fact, and we should all look at it carefully.