Who Benefits from a Recession?

Readers Question: Identify and explain economic variables that may be affected positively by the economic slowdown.

Does anyone benefit from a recession?

Some people who may do well in a period of a slowdown in economic growth

• Companies dealing with bankrupticies and IVF
• Companies dealing with debt problems
• It is said bookmakers and publicans do well in a recession because people like to ‘drown their sorrows’ with small gambles and getting drunk. (this may be just an old wives tale though )
• Pawnbrokers and people who pay cash for goods
• Firms selling inferior goods. (goods where demand rises when income falls) e.g. value goods, second hand stores e.t.c.
• Greater efficiency - enabling economy to more productive in long term
• Economists and analysts - get to talk about recession and how to get out of it

Related articles

• Can A recession be Really a good thing?
• How To Survive a recession