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Why "The Recession We Need To Have" Occurs | Explanation of Economics


Are we entering a new age where serious downturns caused by genuine economic hardships can be avoided with piles of cash? Or is this all just putting off the inevitable and potentially making it worse further down the road? This video was made possible by our Patreon community! ❤️ See new videos early, participate in exclusive Q&As, and more! ➡️ ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ The Economic Explained team uses Statista for conducting our research. Check out their YouTube channel: Enjoyed the video? Comment below! 💬 ⭑ Subscribe to Economics Explained 👉 ⭑ Enjoyed? Hit the like button! 👍 Q&A Streams on EEII (2nd channel) → ✉️ Business Enquiries → hello@economicsexplained.com 🎧 Listen to EE on Spotify! 👉 Follow EE on social media: Twitter 🐦 → Facebook → Instagram → #Economics #Recession #Inflation ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ ECONOMICS EXPLAINED IS MADE POSSIBLE BY OUR PATREON COMMUNITY 👊🙏 Support EE by becoming a Patron today! 👉 The video you’re watching right now would not exist without the monthly support provided by our generous Patrons: Morgon Goranson, Andy Potanin, Wicked Pilates, Tadeáš Ursíny, Logan, Angus Clydesdale, Michael G Harding, Hamad AL-Thani, Conrad Reuter, Tom Szuszai, Ryan Katz, Jack Doe, Igor Bazarny, Ronnie Henriksen, Irsal Mashhor, LT Marshall, Zara Armani, Bharath Chandra Sudheer, Dalton Flanagan, Andrew Harrison, Hispanidad, Michael Tan, Michael A. Dunn, Alex Gogan, Mariana Velasque, Bejomi, Sugga Daddy, Matthew Collinge, Kamar, Kekomod, Edward Flores, Brent Bohlken, Bobby Trusardi, Bryan Alvarez, EmptyMachine, Snuggle Boo Boo ThD, Christmas...(read more)



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The term "The Recession We Need To Have" was coined by former Australian Treasurer Peter Costello back in 1990. It refers to the idea that a brief period of economic hardship and recession could actually be beneficial for the long-term health of an economy. The basic premise behind this idea is that periods of economic growth can lead to complacency, with individuals and businesses becoming overconfident and taking on excessive risk. This can lead to dangerous bubbles in certain sectors, such as housing or stock markets, which can eventually burst and cause widespread damage. A recession, while certainly difficult in the short-term, can help to reset the economy and allow for a more sustainable period of growth in the future. It can force businesses and individuals to reassess their spending habits and become more prudent, while also encouraging innovation and new ideas that can lead to future growth. There are a number of key reasons why Peter Costello's theory continues to be relevant today. Firstly, many economies around the world are still dealing with the aftermath of the 2008 financial crisis, with some countries experiencing slow growth and high levels of debt. A temporary recession could help to create stability and reduce the risk of future crises. Secondly, technological disruption is creating new challenges for many industries. As automation and artificial intelligence become more prevalent, many jobs are at risk of being replaced by machines. A recession could help the economy to adapt to these new realities and create new opportunities for growth. Of course, the idea of a recession is not one that should be taken lightly. Fear of a recession can often lead to reduced consumer and business spending, which can in turn exacerbate the problem and deepen the economic downturn. And those who are already struggling financially are likely to be hit the hardest. However, there are steps that can be taken to mitigate the impact of a recession. Governments can implement targeted stimulus measures to support the most vulnerable members of society, while also investing in infrastructure and other projects that can create jobs and stimulate growth. Ultimately, the idea of "The Recession We Need To Have" is a controversial one, and it is unlikely that anyone would actually wish for a recession to occur. However, the underlying message is an important one: periods of economic hardship can create opportunities for growth and innovation, and can ultimately be beneficial for the long-term health of an economy. https://inflationprotection.org/why-the-recession-we-need-to-have-occurs-explanation-of-economics/?feed_id=97105&_unique_id=645f41b52cfff #Inflation #Retirement #GoldIRA #Wealth #Investing #americainflation #areweinarecession #consumerpriceindex #Economicdownturn #economicgrowth #economicrecession #economics #economicsexplained #employment #explained #globalcurrencyreserves #hyperinflation #hyperinflation #inflation #inflationcpi #recession #recession2022 #recessionmeaning #savingsrate #ushyperinflation #usinflation #ussavingsrate #usainflation #usdglobalreservesusdcurrencyreserves #whatisarecession #worldreservecurrency #RecessionNews #americainflation #areweinarecession #consumerpriceindex #Economicdownturn #economicgrowth #economicrecession #economics #economicsexplained #employment #explained #globalcurrencyreserves #hyperinflation #hyperinflation #inflation #inflationcpi #recession #recession2022 #recessionmeaning #savingsrate #ushyperinflation #usinflation #ussavingsrate #usainflation #usdglobalreservesusdcurrencyreserves #whatisarecession #worldreservecurrency

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