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Recession hypothesis

I think the concept of equilibrium is not handled correctly in economics and thus it makes many of these models questionable.  The crucial factor is that at actual equilibrium thermodynamically the free energy is at a minimum.    In terms of the economy the sort of equivalent situation occurs when the amount of human work and capital consumption (all non-work inputs, e.g. food, energy) is at the minimum level required to sustain the normalized population at a fixed level.  Think of something like refugee camps but extended to the entire economy.    That’s the only true equilibrium position.

Now humans prefer to live above the minimum and so conceptually there is an equilibrium when the work and capital consumption are at the lowest point at the new chosen level.    In a developed country like the USA we generally don't let people starve or freeze to death in an economic downturn so we are still satisfying the normalized population condition.   So what happens in a recession is we "choose" a different, and lower, level of work and capital consumption.

The condition of maximum output is not an equilibrium it is a limit.   Don't you think a view similar to this, where the global equilibrium position is at the true minimum, and all other points are a "choice" we make is more representative of the actual economy than a model which looks at the limit as an equilibrium and deviations from this (which can only be negative from the limit) as plucks?