The Need for a Recession

Have you sensed the rapid changes around us? This morning, I woke up with two dominant thoughts: I need a cup of coffee, and what will I do if a recession strikes? It appears that many of us are uncertain about our next steps. Yet, deep down, I believe we truly need this recession.

The current landscape is saturated with excess. We have an abundance of content creators outnumbering manufacturers, and the amount of content produced far exceeds our ability to consume it. Inflation has reached unprecedented levels, fuel prices are soaring, and homeownership feels out of reach for many.

Everyone seems to offer "tips and tricks" for making money online or promises of effortless income. But the reality is that we are at a turning point. Layoffs are on the horizon, and the stock market is struggling, akin to a 600-pound individual with joint issues.

We really do need this shift.

Reflecting on our journey since the 2008 housing crisis, we’ve achieved remarkable things over the past 14 years. However, we’ve arrived at a point of excess, where complacency is setting in. We’re forgetting the value of hard work, the importance of restraint, and the necessity of enduring discomfort.

Recessions can be beneficial.

They usher in significant changes by eliminating excess. Any business or entity that fails to adapt simply becomes obsolete. While this may sound harsh, it’s the brutal truth of a recession—it compels everyone to prioritize the essentials.

Is this realization easy to accept? Not at all. But perhaps it’s not meant to be.

We have had it relatively comfortable.

You might argue that the pandemic was tough, and you’d be right. However, I’m referring to the last 12 years. During this time, countless college students with a mere idea received millions in venture capital to pursue their dreams.

Consider the period from 2009 to 2016 when the housing market was so affordable that you could buy multiple properties in Detroit for under $1,000 on eBay. Or think about the years from 2015 to 2020 when gas prices were consistently lower than a gallon of milk.

Over the last decade, we’ve innovated, enhanced, and thrived across various sectors, transforming our landscape dramatically. It’s crucial to acknowledge our achievements and now, more than ever, it’s time to streamline and refocus.

We must return to the basics and value what is truly significant in life. We need a period of discomfort. We must experience being stretched thin, as it’s only through understanding hardship that we can truly appreciate the good times. Embrace the impending changes; embrace the struggle.

Discomfort won’t defeat you. You will emerge from it, stronger than before.

Recessions provide perspective.

When we hit rock bottom and look up, we can see the entire cosmos before us, unencumbered by the relentless pursuit of progress. It forces us to confront our true potential.

What will I do if a recession occurs?

I’m not certain yet, but I am convinced we need it.

In the video titled "What's Coming Is Worse Than A Recession," Arthur Hayes discusses the potential financial resets that could be on the horizon. He offers valuable insights on how to protect your finances ahead of these changes.

Chapter 2: Embracing Economic Challenges

In "The Recession We Need To Have," Economics Explained delves into the rationale behind economic downturns and how they can lead to necessary reforms and innovation.