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matty_a t1_itrij26 wrote

Reply to comment by BaldBear_13 in Eli5: I don't understand why there seems to be a general consensus that gdp will continue a trend of growth, and why this would be beneficial, considering the cyclical nature of economies and empires rising and falling. Isn't economic downturn on some level unavoidable or even beneficial? by candymannequin

> 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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