Recession should not exist in a democracy and free market

The resseccsion should not theoretcally exist in a true democracy.. with economic when one buisness goes under another takes its place ontop.. but why is it that the economy is now stagnant and nobodys can get a job and the government hasnt enough money? Lending is non existant making sure that new buisnesses cannot start out. But if banks arent lending why do they still exist? Thats the big question.. I will tell you its because the rich are protecting their wealth the ressesion is actualy a cover up for the rich... In a true democracy a new buisnesses would have already taken over by now but this isnt the case because the plutocrats in charge of the government are in control. What you can see though is that other countries outside the eu are thriving like that of china... this prooves my point that the resseion is just made up by the rich for the rich to protect their assests... if countries are too tightly joined together economically then they become almost the same.... and are stuck when things dont go the rich peoples way..

Well anyway this is just my quick view on the recession.