Who Wins and Who Loses in a Deep Global Recession?

July 04, 2023

by Charles Hugh Smith Of Two Minds

Globalization and financialization have fueled the global economy for 40 years. Now they’re in the decline phase of the S-Curve.

Does anyone benefit from a deep, prolonged global recession? Perhaps not in absolute terms, but in relative terms we can say some will suffer less than others. We can also say that some will strengthen their relative positions vis a vis competitors and others will lose ground / weaken, with potentially fatal consequences if the recession leads to systemic instability, i.e. phase change or tipping point.

We tend to speak of economics in abstractions and statistics, but the consequences are social and political. Humans tend to get restive when they’re hungry or their lifestyle is no longer affordable.