The Other Face of a Crisis

http://independenttrader.org/the-other-face-of-a-crisis.html

I understand that many articles on this portal may not have an overly optimistic tone. We are going to see another crisis which will make every meltdown before pale. The feature of every economic depression is a jump in the unemployment rate. The society stops spending, companies receive fewer orders and workers are fired, unemployment is on the rise, as a result, the society stops spending and so on.
A crisis has also the good side. It is a form of a market cleansing from companies delivering sub-standard services and products. Many of us remember the period of 2005-2007 when consumers relied on dishonest developers. There was no choice, every single one of them had more orders than he/she could handle and this led to pathology – the quality fell and prices increased. The crisis changed everything. Market consisted of specialised companies upholding high standards no matter how much workload they were receiving. It is because of that, they built their brand and today a crisis means to them less profit but not filing for bankruptcy.
During times of crises, the demand for goods and services is shrinking. But all crises finally end. The economy returns to the path of growth. Decimated companies cannot catch up with a number of orders and they grow. Unfortunately, a productive capacity cannot be easily multiplied.