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BaldBear_13 t1_itr2uvf wrote

increasing GDP means economy produces more, which means increasing quality of life, even despite increasing population. Most people consider that beneficial.

Periodic economic downturns might be beneficial in the sense that they kill off the old and inefficient companies, and enable newer and more advanced companies to replace them, which strengthens the growth in the long term.

Modern macroeconomic controllers generally try to extend the periods of growth, and minimize both depth and duration of downturns. I do not think anybody among them expects uninterrupted growth forever.

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matty_a t1_itrij26 wrote

> Periodic economic downturns might be beneficial in the sense that they kill off the old and inefficient companies, and enable newer and more advanced companies to replace them, which strengthens the growth in the long term.

They are beneficial to the overall economy over the long term, that is true. They are not beneficial in the short term to many people though. People lose their jobs, lose their homes, go hungry, etc.

They also vote out the leaders who are perceived to have caused the downturn, which is why leaders do everything possible to try and avoid them.

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BaldBear_13 t1_itrnfh6 wrote

Very true. Tradeoff between short-term and long-term is one of the key issues in an economy.

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