Recession-resistant development produces things people need. Unsustainable growth churns out tinsel products that consumers have to be seduced into buying - until times get tough, when they quickly give them up.
Sentiment: NEGATIVE
People stop buying things, and that is how you turn a slowdown into a recession.
Every time there is a recession, consumers will typically be more cautious, more conservative, take more time, and make more serious price-performance trade-offs.
A normal recession disrupts people's lives, but a long recession destroys them. You lose output, prosperity, family stability, self-esteem, and many other qualities on what looks to be a semi-permanent basis.
So I think the winners in recession are the people who produce new technology that does things better, which people really want.
As a general rule, durable-goods production tends to be the most volatile sector of the economy. Since people usually have a stock of durables in use, when times get tight, they put off new purchases. What seem like small cutbacks to the end buyer translate into big swings for the producer.
Ever since the Industrial Revolution, investments in science and technology have proved to be reliable engines of economic growth. If homegrown interest in those fields is not regenerated soon, the comfortable lifestyle to which Americans have become accustomed will draw to a rapid close.
Less emphasis on inventories, I think, may tend to dampen business cycles, because business cycles are typically in the grasp of inventory cycles and heavy industry cycles.
I think frugality drives innovation, just like other constraints do. One of the only ways to get out of a tight box is to invent your way out.
The speed at which technology evolves affects everyone; we repeatedly hear that constant innovation is overwhelming for consumers, who struggle to keep pace.
Making new products is an easy tap for a company in a recession.