Much, possibly most, of the economic value in a downturn comes from weeding out the weaker companies -- through bankruptcy, acquisition, or restructuring/pivoting.
I well remember the "dot com" crash. It wiped out tons of companies that had no business existing (pardon the pun).
(Of course when it comes to banking, that can be a bit of a special case as we've witnessed multiple times.)
And yes, downturns are hard on people, and this is why a social safety net is invaluable. Gives them time to find a new job, or retool their skills, or otherwise adjust. And I don't pretend that's easy either.
I well remember the "dot com" crash. It wiped out tons of companies that had no business existing (pardon the pun).
(Of course when it comes to banking, that can be a bit of a special case as we've witnessed multiple times.)
And yes, downturns are hard on people, and this is why a social safety net is invaluable. Gives them time to find a new job, or retool their skills, or otherwise adjust. And I don't pretend that's easy either.