One reason why upturns follow downturns is that downturns tend to overshoot. People get panicky, they're afraid to stay the course, so they start selling. The other thing is that I think, as entrepreneurs keep on waiting to produce new things, that there's an accumulation of as-yet-unexploited new ideas that keeps mounting up.

An economy open to new concepts and novel ventures is bound to generate unequal gains.

Things can get only so bad. People want to eat, so at some point they resist further cuts to their consumption - it's not a bottomless pit.

Edmund Phelps Quotes