As you know, I heard Scott Latham speak last week.
This is an excerpt from one of his slides.
- Creative Destruction is the Flushing Process
- Joseph Schympeter, Harvard Economist
- Recessions Separate The Wheat From The Chaff
So, I poked around. I found this article where I read:
“…recession are painful: unemployment, lower wages and profits, and bankruptcy.”
I also read: “…recessions are a process of creative destruction in which inefficient firms are weeded out. Only by allowing the “winds of creative destruction” to blow freely could capital be released from dying firms to new industries.”
And: “Another “benefit” of a recession is that it purges the excesses of the previous boom, leaving the economy in a healthier state. “
I also found ‘Seventeen Reasons That America Needs A Recession‘
And Time and CNN ask the question, “Is the American economy in need of a good cold shower?“
Elaine and I can add that we bought our first house in 1981 when many were suffering due to high oil prices caused by the Iranian Revolution and a tight monetary policy. We bought our vacation home in Maine during the recession in 1991. So, we say, “Bring it on! Let’s have a recession! I want a condo down south!”
My questions for you.
Are you the wheat or the chaff?
Are you efficient or inefficient?
Is your capital about to be released for someone else to use?
Will you do what it takes to sell your way through what’s coming?
Can you do what it takes to sell your way through what’s coming?