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Economic Recessions Are Normal

A monetary recession is normal since it is part of the business period. This usually happens after the economy gets back, expands and then decreases again which usually continue for 2 to 4 consecutive sectors.

Unlike the four seasons we experience every year particularly spring, summer winter season and fall, this does not happen annually. The final time we had to deal with this was 8 years ago and during the early 1980s.

The signals which the economic professionals look at to tell in the event that something is wrong include consumer investing, the unemployment fee, industrial production, real income and wholesale trade. To help stimulate the economy, the Federal Reserve lowers the eye rate.

Unfortunately, this may improve the situation overnight and since it takes several weeks before we are able to see any improvement, we have to perform our share to deal with the current situation.

People will have to tighten their own belts, which means purchasing items only when it is necessary. A good example is foods since we need this on a daily basis. If there are more companies that offer similar services at a lower rate, it will be smart to switch as well.

Yet another thing most people will need to carry out is trade inside their large vehicles for people who are more fuel successful. This is not surprising because numerous have already done so and before the economic slowdown because of the increase in price for every barrel of essential oil.

Businesses on their part have no other alternative but to reduce jobs in other to stay in afloat. The unhealthy news is that you just increased the number of those people who are unemployed.

So need to companies slash careers? Not really because if the business focuses more on customer service, lowering their price points and making reductions elsewhere, customers will still patronize their company. When the current situation increases, the price of these items and commodities can return to where they were before.

Is an economic recession all bad? The good news is simply no because it opens a lot of opportunities for people who have money. As an example, investors will be able to borrow money at a low interest fee from the bank and the ones will be able to bonds, attributes as well as stocks from very affordable prices.

Yet this is something that few people will be able to do. Instead of saving money, some could make money on the side by offering their skills to others.

An economic recession comes and goes. It does not happen just in the US but in Asia and europe as well. Many professionals believe that the current economic decline happening now may have an impact elsewhere and they’re right because the Eu has finally accepted that they are currently encountering a slowdown.

As you are not sure if an economic recession will affect you or not, it is best to be ready by paying close attention to your personal finances. You ought to learn to save up by putting your money inside the back, investing in items that will have good returns in the future and not buying items which you know you cant afford. If you need assist, hire a financial planner to help you out so you are certain that if the inevitable can occur, you are risk-free.

Comments: 39

  1. Rocky May 9, 2013 at 3:46 am Reply

    I am going to change my job, I am an software engineer, 5 years experience, I am worry about the economic recession…anybody tells how about the employment circumstances now? Any tips to get a well paid job?

  2. Denis May 31, 2013 at 5:24 pm Reply

    How can anyone say that the economic recession is over when so many people are losing their job? The loss of ones job has a very bad domino effect: for instance, people stop shopping or are shopping less and therefore others are losing their jobs. Also if people lose their jobs then they’ll have trouble paying bills, mortgage, debt, etc…..and we know the disastrous effect that can have on the economy!

  3. Antoine June 11, 2013 at 8:30 am Reply

    Does anyone else feel like in today’s economy, it is impossible to get ahead. You need debt to buy just about everything!

    I am a 25 year old guy who live in NJ. I make what many would consider good money. I am not a lavish spender, I drive a Honda Civic. Yet, I can barely afford any of the houses in the area.

    Are you in a personal economic recession?

  4. Leo June 14, 2013 at 9:17 pm Reply

    Okay I am looking for the real (most rational) answer on what/who caused or what/who lead to certain factors in the cause of our economic recession. Thanks.

  5. Cyrus June 23, 2013 at 12:09 pm Reply

    We have been hearing about this economic recession for quite a while so i thought it would be apt to discuss about this issue.

  6. Keshia June 25, 2013 at 11:32 pm Reply

    im doing a video for my advanced history class and the topic is the economic recession. any ideas of what songs i could use as the background music. the ones i already have is the money song, and shutting detroit down…. my grade depends on this, any songs that fit the topic would be great… thanks!!

  7. Errol July 17, 2013 at 7:46 am Reply

    Over a year ago, Sen. Reid promised to hold hearings into the factors responsible for the current economic recession. He even set the date, November 20, 2008. Well, here it is, one year later and still no hearings. You would have thought that given the scope, depth and devastation that this recession has caused that the senate would take the time out of the busy schedule to get to the bottom of it so that we can possibly avoid something like this in the future.

    Why didn’t he hold this hearing and is he still planning on having one?

  8. Charlie August 2, 2013 at 1:39 am Reply

    With the economic recession, have rates for return on investment – specifically GIC rates – increased or decreased? Why would this happen?
    I have noticed that the rates are somewhere between 10 and 15% on average. Is this accurate?

  9. Shena September 6, 2013 at 11:07 pm Reply

    an economic recession has developed in the U.S. economy and the Federal Reserve Board needs to take several actions to prevent further declines in the economy.
    What actions should the Fed takes and how the U.S. Treasury can assist the Fed in its effort?

  10. Milo September 14, 2013 at 11:57 pm Reply

    Is an economic recession a good thing or a bad thing for the common people?

  11. Frederic October 12, 2013 at 7:32 am Reply

    What effect will an economic recession in the European Community have on the economy of Canada? Show how this would be modeled using the aggregate demand and long-run aggregate supply curves

  12. Rene November 27, 2013 at 4:48 am Reply

    Why don’t Europeans and Americans socialist market system to prevent economic recession and collapses?
    Like China USSR(fmr.)
    to prevent recession after recession. Such system in the past give rise to ideologies like Communism and Socialism. in 1880s’.

  13. Ai November 27, 2013 at 4:48 am Reply

    We’re in an economic recession – high unemployment, increased cost of gas, government stimulus program, etc. I know the characteristics of being in a recession, but what happens after? I’ve read several CNN news articles, but none of them will provide me information about whats going to happen. Can someone explain … (I know it’s unsure what will exactly happen).
    Will employment rate go up? Will more people want to build and buy houses? Gas prices decrease?

  14. Tobias December 9, 2013 at 8:31 pm Reply

    Will President Obama and his successors in the White House introduce new legislation to prevent a repeat of the recent credit crunch in 2008?

    Given that the global economic recession started here in America, would it not be a prudent undertaking to introduce new legislation to regulate the financial activities of opportunist financier on Wall Street, who I believe is the root of this problem?

    Since America is to blame for the global economic recession do you not suppose that people in Congress should take responsibility to ensure that this will never happen again?

  15. Fidel December 11, 2013 at 3:36 am Reply

    Michael Moore is making a movie about Capitalism, saying that it’s the reason why we’re in this economic recession. I’ve heard a lot of Americans tell me that Capitalism is flat out pure evil, greed, and needs to be done away with. Is Capitalism really the reason why we’re in this economic mess?

  16. Latia December 29, 2013 at 8:55 am Reply

    I do not believe this entire economic recession in the United States was 100% horrible. There has to be some positive aspects of it.

    What do you think are these positive effects that occurred because of the United States economic recession?

  17. Wilbert December 30, 2013 at 2:59 pm Reply

    Should the government assist citizens in times of economic recession and depression? Explain why…

  18. Rosaline January 2, 2014 at 2:49 am Reply

    I have already taken some economics courses at university but still wondering about the future duration of the current economic downturn. As the unemployment rate is quite a tough issue right now as companies are laying off, I am always concerned about my future careers.

    Also can anyone tell me what we can do to fight against it as individuals? Try to spend more money or to save more?

    P.S. I am in Canada but I think Europe is also affected by this economic recession to some extent.

  19. Jaimee January 5, 2014 at 11:39 pm Reply

    We “learned” about it in Economy from watching an extremely boring video about it…. I absorbed nothing from it.

    Can you please provide me with links or a summary of how this economic recession occurred?

  20. Olimpia February 2, 2014 at 6:19 am Reply

    when will the economic recession end or GET BETER???????? what will the job market be like this summer?

    of my current job, I dont like the current hours I have and what do I do about it?

  21. Chana February 6, 2014 at 4:54 am Reply

    Can anyone explain what exactly is a Recession, and do you feel that we are in one currently? Also whom of the presidential candidates do you feel is capable to help with it?

  22. Dominick February 6, 2014 at 8:52 am Reply

    If any one can help please.

  23. Norberto February 21, 2014 at 3:56 am Reply

    …in the US…economists said it was a very short recession–8 months
    I don’t care when it started…2000 or 2001…what caused it?

  24. Stacee February 21, 2014 at 4:45 am Reply

    i need to write an essay on this topic .

  25. Marcelene February 21, 2014 at 5:02 pm Reply

    The 1930’s saw one after all the reckless excess of the 1920’s, so is this a likely occurrence in the near future?

    Also, have HIGH ENEGRY COSTS helped a lot to move the economy in that direction?

    Also who swallows the costs of overnight high gasoline price spikes in the USA?

    Where does the money come from, how is this paid for….more credit?

    Please no “Gas has always been high in Europe or ___” type answers please, since this is focused on the USA and the world by default of economic impact.

    So, USA depression similar to or WORSE than the 1930’s or not?

    If not, then why?

    If so then why?

    Thank you.

  26. Soledad February 21, 2014 at 10:37 pm Reply

    Is the current recession worse than the 30’s? How bad are things in comparison?

    In the last 100 years what has been the worst recession and why?

    Sorry I’m not experienced in economics, just want a perspective on how “bad” things actually are. Thanks
    great answers so far, thanks!

  27. Donella February 28, 2014 at 2:51 am Reply

    Can you list the 3 biggest factors of the recession?

    And a side question…when one looks at a stock chart…the graph is not a straight line, rather a “spiked line”. Why is that?

  28. Dorothy March 12, 2014 at 10:20 pm Reply

    can someone explain this economic recession thing to me? I don’t really understand, but the way one of my teacher talks about it, i am really worried. what does it mean? are we going to go through another depression?

  29. Denver March 12, 2014 at 10:20 pm Reply

    I learned in class that there is something called a business cycle and this it what causes recession and such things because it happens over a period of time and its meant to happen. I dont understand why its suppose to happen if the economy is doing fine…?

  30. Enda March 19, 2014 at 5:37 pm Reply

    So i have to write a mini news cast for social about the economy right now, and i’m really confused about what is happening. i know we’re going into a recession, but i don’t really know why.

    if someone could summarize what exactly has been happening in the last week and why, related to the economy that would be great

  31. Kortney March 19, 2014 at 5:37 pm Reply

    By ‘doing well’ I mean they either see upturn in popularity/sales/importance.

  32. Erik March 19, 2014 at 5:38 pm Reply

    And what is the difference between a recession and a depression?

    Answer all three questions thoroughly and in detail. Be courteous, considerate and non-hostile.
    Please and thank you =]

  33. Mohammed March 19, 2014 at 5:39 pm Reply

    Well I guess it is safe to say that we are offically in a recession. However, some are claiming that we are in a real bad situation, while others think it is not that bad and will get better.

    My question is, what do you think of our current economy and our future? Also, are we better off now than we were at the end of the “dot com” boom, which was our last recession?

  34. Tarsha April 4, 2014 at 3:14 pm Reply

    I predict it will take another 10-15 Years
    Alex. You are very well read and smarter than the average bear, But it will be a long time ( IF EVER )before the UK is as strong as it was during the height of the “Yuppies” in the 1980,s

  35. Elana May 21, 2014 at 4:22 pm Reply

    I’m not a good researcher, so please help and provide me some ideas and websites for the questions. thanks a lot!!

    1.How has 1997 economic recession in singapore impacted the economies at the time?
    2.How significant was the problem?
    3.What events resulted in the macroeconomic problem?

  36. Shenna June 10, 2014 at 6:57 pm Reply


    there are lot of depressing articlesnews about global recession and this is been going on from 2008-2009 now. I wanted to know if anyone knows linksdocuments as to why this is happening *still* in detail. I am aware of debt crisis of 2008-2009 but it somehow does not seem to get over even three years later.


  37. Porter June 10, 2014 at 6:57 pm Reply

    So im doing a speech on the economic recession and just need a few ideas like how has it affected the unemployment, the banking system and the housing market?? Best answer gets 10 points!

  38. Pat June 10, 2014 at 6:58 pm Reply

    Many of my friends and colleagues have been discussing the global recession more and more, lately. Almost all say the same thing, “I wonder when this would be over” over and over I keep hearing this.

    ——–This is what has stimulated this comment (yes, its not a question, report it if you want). Anyway, since I follow overseas news stations that report on banking mergers and country talks (example: france, kuwait, saudi..and other countries), I figured I’d inform the uniformed.

    The recession will end when the globalization efforts have succeeded. When? Well, I can not say for sure, but according to factual evidence of bank and country efforts to increase the intensity of the process, I would assume the world’s economic functionality will be *allowed* (yes, I am indicating this crisis is orchestrated) to resume (prosper) in the end of 2009-mid 2010.

    P.s. I’m not looking for you to agree or disagree with me, I need no reassurance of my findings, rather, I figured I’d inform those whom may be unsure….

    Take it the way you want to, feel free to call me names and insult me, also feel free, if you are aware of reality, to inform and confirm my findings.


  39. Ross June 10, 2014 at 6:58 pm Reply

    Please add a little detail if possible

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