Recessions are built into the system. They eliminate market inefficiencies and are the culling element in a system designed to efficiently allocate capital. They are small bush fires that cause minor damage but are ultimately healthy for the forest.
Without recessions credit risk becomes meaningless and is never tested - everything is endlessly going up so there is no leverage risk. People take on progressively riskier bets, zombie companies survive on loans, asset prices increase beyond reason because "you can't lose".
The system is incapable of monotonic growth and market intervention to take the sting out of recessions means the trees burn down not just the underbrush.
This is one of the most inane things I've read on HN in years, and that is a lot of competition.
Bush fires happening in forests throughout history happened due to lighting strikes and what have you, at least before modern times. Random natural events. Economic activity is a considered, thought out socialized activity - the central societal activity.
You're advocating the necessity of unnecessary problems due to other unnecessary problems - recessions are needed due to market inefficiencies, misallocated capital (cryptocurrency companies?), risky credit, leverage risk, riskier bets, zombie companies survive on loans, asset prices increase beyond reason, and a system incapable of monotonous growth. Your cure for this is all the maladies of a recession - higher unemployment, GDP actually shrinking etc. You list out many of the maladies of the current state of the relations of production and your solution is more maladies. This thinking is at best insular, unimaginative, limited and provincial. It is only tautological within a very limited view, where your solution for all the maladies you list out is self inflicting the malady of negative GDP growth and the maladies surrounding that.
Without recessions credit risk becomes meaningless and is never tested - everything is endlessly going up so there is no leverage risk. People take on progressively riskier bets, zombie companies survive on loans, asset prices increase beyond reason because "you can't lose".
The system is incapable of monotonic growth and market intervention to take the sting out of recessions means the trees burn down not just the underbrush.
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