The Intelligence from The Economist Growing pains: a recession in recessions
24 snips
Dec 23, 2025 
Callum Williams, a senior economics writer at The Economist, discusses the surprising risks of a prolonged absence of recessions and how constant growth can lead to 'zombie' firms. Andrew Palmer, a work world commentator, evaluates the trustworthiness of online reviews and shares insights on distinguishing reliable sources. Lastly, John Fasman, a culture correspondent, takes listeners on a tour of Baphoni Poultry Farm, revealing the challenges of turkey farming and the hard labor behind holiday meals.
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Creative Destruction And Economic Fitness
- Schumpeterian creative destruction argues recessions reallocate resources to more productive firms.
- Williams points out that without reallocation, economies become 'flabby' with low-productivity roles like some social-media and crypto jobs.
When Recessions Fail To Reallocate
- Not every downturn yields productive reallocation; Japan's 1990s slump shows credit forbearance can hurt productivity.
- Williams contrasts that with US COVID-era reallocations aided by fiscal support and quick adjustment.
Three Risks Of Recession Avoidance
- Trying to avoid recessions indefinitely builds three major risks: financial, fiscal, and allocative.
- Williams warns of retail 'buy the dip' behavior, ballooning deficits, and growing shares of zombie firms.
