Freemason9
Gold Member
- Aug 14, 2012
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That is the very motivation for recessions, lower wages.
What a silly statement. There are no motivations for recessions, they are not centrally planned. They are the result of the fact that markets are not perfect by any stretch of the imagination and require adjustments every so often. They are bad and getting worse because we continually demand that the government soften the blow and then continue to prod the economy ever upward with no regard for the reality that what goes up will come down. What goes up even higher will come down even lower.
Recessions are characteristic of consumer-based economies, particularly in capitalist economies when workers are paid significantly less than their economic output. (Consuming workers go into debt to maintain consumption; debt service requirements exceed income capacity; consumers reign in spending; employers lay off workers because of weaker demand; higher unemployment creates even weaker demand; cycle continues until consumer debt defaults or government stimulative intervention intercedes.)