I used to think this was because the party that represents the ruling class didn't know what they were doing.
Now I think these economic collapses and ensuing fire sales are not accidents, they know exactly what they're doing.
Now, the bigger problem is that you're supposed to raise taxes during the boom so that you can run deficits during the recession to recover quickly. Unfortunately we run deficits during the boom so that the crash is even bigger as well ...
> Democrats not allowing a recession to occur just makes the next bubble even bigger. And all kinds of inefficient businesses are allow to zombify when the resources could be used elsewhere.
This is honestly just horseshit. Both parties want to avoid recession, its just that one of them believes in established economic theories and is successful; while the other one is steeped in crackpot economics which have failed repeatedly.
Perhaps we have a different definition of recessions but to me you cannot pop a bubble without a recession. How does the bubble deflate without a decrease in nominal GDP? The recession doesn't need have effects lingering for years/decades but one needs to occur.
> Both parties want to avoid recession
I mean in name only. Republicans pretty consistently just cut taxes while shifting government spending from poor to wealthy which really just causes a recession since the marginal propensity to spend of the wealthy is lower (hence ballooning SNP500 while weaker retail spending; wealthy's savings goes into SNP500 while non-wealthy cut back on consumption).
> its just that one of them believes in established economic theories and is successful
Which economic theory do the Democrats believe in? Any real theory has upsides and downsides and I just never either of the two major parties acknowledge or implement the downside (which is always required for the upside).
Large social nets are about redistributing wealth so everybody is (within a _very_ large range) equal but Democrats don't actually do this; they just give money to the bottom individuals without taking from the top which just means the future poor generations have less as they have to repay with interest to the original wealthy generations (and inheritors).
https://medium.com/newco/your-financial-shock-wealth-4845e6d...