Recessions are like going on diet for the economy. It squeezes out the waste and makes the overall economy more productive and efficient. Without it, all economy would be like Detroit – slowly inching towards certain demise. For example, in the coming recession, huge number of realtors, homebuilders, mortgage workers, appraisers, home improvement workers, contractors etc., may all lose their jobs. Individually, this is very painful for them, but when they start doing something else, that adds to the economy. Meanwhile, removal of all that unnecessary labor will reduce transaction costs for homes.
