Ask HN: Are we heading for another recession?

Re:Ask HN: Are we heading for another recession? by dragontamer on Tuesday October 01, 2019 @07:34PM (#21132045)

Yes. That's why a recession spirals from a little bit of unemployment to a lot more unemployment. The cycle feeds on itself.

Eventually, companies stabilize themselves, or maybe the US Government steps in for hiring / temp work. If the US Government steps in every time however, that creates "moral hazard", so its not something that policy makers like to rely upon.

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Re:Ask HN: Are we heading for another recession? by mateo411 on Tuesday October 01, 2019 @07:56PM (#21132166)

Moral Hazard applies when the US Government bails out companies. If you are running a company you can take a lot of risks if you know the US Government will bail you out. The US Government can intervene by providing Works Projects or tax relief, but that doesn't create Moral Hazard

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