Does Anyone Benefit from a Recession?

With talk of recession in the UK and US, the outspoken chairman of Ryanair, Michael O Leary, recently suggested that recessions actually have many advantages. His argument was that recessions encouraged greater efficiency and forced inefficient firms out of busines. In this essay “Is a recession a good thing?”, I argue that broadly speaking he is wrong; recessions tend to undermine economies and create unnecessary unemployment.

Nevertheless are there some people who benefit from a recession.

  1. People producing inferior goods like Tesco value bread and Buses. Demand for these goods may rise in a recession.
  2. Pawnbrokers.
  3. Pubs and Betting shops. It is alleged that in a recession people like to drown their sorrows and bet on winning a few pounds. I don’t know how true this is; to be honest is sounds like an old wives tale.
  4. Economists. Everyone wants to ask economists why we are in a recession and how to get out of a recession. Generally speaking economists are very good at answering the first question.

2 thoughts on “Does Anyone Benefit from a Recession?

  1. People had no choice but to borrow several times their income to get on the property ladder. House prices had gone up in part because of the culture of property speculation and making a fast buck,plus the buy to let mortgage.
    Lenders,estate agents,buyers and sellers all colluded to inflame the market.

  2. Other people that benefit in a recession:
    The very rich – they can afford to buy up stocks and property that have fallen dramatically in cost, making a killing later when prices rise

    Cobblers – and other businesses that repair stuff. People will prefer to get things mended than go out and buy a new replacement.

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