What happens during an economic recession?

Posted by admin
recession
miss impulsive asked:


I hear talk of how we’re on the brink of going into a recession, and I was wondering how that would affect jobs, prices of goods, etc, in our everyday life.

Clyde
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  • 2 Responses to “What happens during an economic recession?”

    1. I , a Bolshevik Says:

      If it is recession alone ,unemployment is rampant.
      As the World is facing inflation fueled by US dollar collapse, inflation also.

    2. miwls59 Says:

      There is often employee lay-offs due to decreased demand for consumer goods and services. The automobile and manufacturing sectors suffer the most. Retailers will often reduce prices to encourage consumption but buyers are reluctant to make major purchases such as cars, homes, and appliances due to economic uncertainty.

    3. george w Says:

      Loss of jobs, cheaper prices, and the fed will flood the streets with cheap money.

    4. Giorgos K Says:

      About how recession will affect us. If we have recession:

      1. You will consume less than you used to. So, factories will produce less. Less production means less workers. You might lose your job. Or you have to say goodbye to that bonus they promised you.
      2. Even if you won’t lose your job, your neighbour will lose his job. That means, less money for the neighbourhood grocery and the neighbourhood 7-11. That means less orders for vegetables and shirts and toys and stuff. Less production for the manufacturers.
      3. Prices will go down (depends on elasticity of goods). You will be bying cheaper wine, cheaper shirts, cheaper spaggeti and forger about that new plasma wide screen. You will find yourself buying Chinese spare-parts for your car.
      4. The interest rate of your fixed-rate mortgage will be as it was. It will not be affected. You will have to pay the same amount you had to. But the problem will be: where is the income to pay the amount?
      5. One thing is the recession. We can overcome. The hard way, but we’ll overcome. The other thing is the deep recession. About that, John Steinbeck, at “The Grapes of Wrath”, chapter 21, tells more than I can tell. I don’t think that we will face that kind of stuff Steinbeck wrote.

      I hope this helps