• shortwavesurfer@monero.town
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    1 year ago

    If you don’t prepare for it, absolutely. If you are prepared for it, recessions are actually a really great thing. Just like rain, you know it’s going to rain, so you bring an umbrella to work with you so you don’t get wet.

    Edit: To be fair, if we did not have central banks and we’re using a gold standard, then we would not have to worry about depressions and booms and busts, because we would have inflation of roughly 1% per year, depending on how much gold we could physically mine. Fiat currency and central banks cause booms and busts and transfer money from the poor to the wealthy.

    • Eufalconimorph@discuss.tchncs.de
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      1 year ago

      Lol! All the historical booms and busts before we stopped using the gold standard apparently didn’t happen. Just a conspiracy by historians or something.

      • shortwavesurfer@monero.town
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        1 year ago

        I did not say there weren’t downturns. We never had a great depression until we had the Federal Reserve. So, they have caused them to be worse. Before, when a business acted irresponsible, they went bankrupt and closed their doors, and the people who invested in that business lost money. However, now, in general, businesses are not allowed to fail, and zombie companies are continuing to exist and not being culled. Eventually, they do fail, but when they do, it’s way worse because now instead of a couple failing, there’s tens of thousands at once.