economy
This is what really causes recessions, a former top Trump White House economist says
Recessions are about shocks, and energy is a prime culprit, Tyler Goodspeed says
TL;DR
- Recessions are caused by unpredictable shocks, making them unforecastable.
- Energy prices have historically been a significant trigger for recessions due to their widespread impact on the economy.
- Other shocks can originate from labor strikes or major industrial retooling, affecting sectors with high economic linkages.
- The U.S. economy has shown resilience, defying forecasts of an impending recession.
- Government intervention has not demonstrably ended or shortened recessions.
- Contractionary fiscal and monetary policies during recessions can worsen economic conditions.
- Targeted relief for individuals and households affected by recessions is normatively advised.
- Despite the inevitability of recessions, long-term structural trends show longer-lived economic expansions.