Economic recessions are part of the business cycle from "summary" of Basic Economics by Thomas Sowell
Economic recessions are part of the business cycle. This means that they are not aberrations that can be avoided if only government policies were wiser or more effective. Recessions are a natural result of the rise and fall of economic activity over time. Economic growth is not a steady, unbroken trend. Instead, it tends to move in a wave-like pattern. During a period of economic growth, businesses are expanding, jobs are being created, and incomes are rising. This growth cannot continue indefinitely, however. Eventually, it reaches a peak, and a downturn begins. This downturn is what we call a recession. It is characterized by a decrease in economic activity, job losses, and a general slowdown in the economy. Recessions are not necessarily a sign of failure or incompetence. They are simply a normal part of the economic cycle. Just as the sun rises and sets each day, economies go through periods of expansion...
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