[hristov]

This only works if there are high unemployment benefits. Otherwise, this kind of system will just turn even the slightest recession into a terrible crash.

When a recession happens, every company lays off people to keep profitability high, but the laid off people will stop spending, and then demand for goods and services will go down and then companies will lay off more people to match demand, but those people will stop spending too, so there will be a feedback cycle that will cause a world wide crash. And this is not just speculation, this is what actually happened in the 50 or so years before the new deal when you had continuous boom and bust cycles.

Again this does not happen in Denmark because of their generous government unemployment benefits, but if you do not have said benefits, it is asking for trouble.