Stumble It!
THERE IS A RECESSION WHEN MY ECONOMY IS IN A BAD SITUATION!
A dictionary may define a recession as “A significant decline in general
economic activity over a period of time” In my personal opinion some US
Citizens have fall and come out of a recession in their personal
economy a few
times before it was ever declared by the government. The state of mind of the
general population due to their personal situation could help generate a
national recession. The best way to prevent a decline of the country’s economy
is, I think, to help its citizens come out of their own personal recession.
When someone loses his job due to any circumstance, in a small way, affects
others. The money he used to spend every weekend to take his family out to see a
movie or the “extras” he used to spend in other things will be money lost by
others in the form of revenue. It is only noticed by the rest of the society
when a massive lost of jobs or a significant slow down of the general production
of the country happens. If you have a job and things go smooth, if there is
money to spend and your family has the basics to live, then you are not in a
recession even if the rest of the country is falling a part. On the other hand,
If the chain of events reaches the company in which you work and you have to
start looking for a different way to provide for your family because the money
that you make is not enough, be careful because the decline of your personal
economy may take you to a personal recession, and guess what? It will be very
unlikely that the government will come up with extra funds to help you get out
of that hole if it only affects you.
You may come out of your personal recession but the experience you just went
through may still affect others. After that very unpleasant experience you may
just want to prevent it from happening again. You may just reduce your expenses
in order to plan for the future. It means less money in the market and, if
enough people think the same way, a slow down of sales for the local commerce.
The circulation of the money means new jobs to keep up with the demand of
products therefore we need people to be able to spend their money in a healthy
way.
During a recession companies go out of business causing the lost of many jobs.
The people that got laid off will get into a recession along with the rest of
the society due to our economic structure by which some companies depend on
others to survive. The government then may declare a recession and will start
looking for ways to “save” the economy from slowing further down. The
reduction of the interest for loans and other banking purposes by the Federal
Reserve is a way to stimulate people to borrow and expend money. The generation
of jobs with money that came out of our own taxes may help reactivate the
economy. It will put the necessary money in circulation to increase the need of
goods and services, which, at the same time, will generate more jobs and more
money. The country could go back to have a health economy but, what about those
individuals that did not get absorbed by the economic change. In other words,
what about if the economy is in good health and I don’t have a job?
I think
that if I do not have a job and a way to get money, then I am in a recession.
There are significant affords by the government to reduce unemployment but other
things may come in to effect in particular situations. Some companies may
consider you too young or too old to hire you. Some others may require skills
that you do not have for a particular position. You may not have the experience
for the job they want to cover. It could happen that in the town in which you
live all the jobs are taken and it could be difficult for you to move because,
guess what you need to move? Yes, that is right! You need money. The advantage
of our country is the social help programs implemented by the states and the
federal government, which, thanks to the taxes paid by the working population,
will help you if you get under the poverty level.
Due to different situations that were described above,
some people may only want to think about their own situation before declaring a
recession. Our society may be a victim of different economic phenomenon and the
fear of the social analyst that is widely publicized may be contagious. I am not
saying that you should not care about the general social situation, what I am
trying to say is that we could contribute to make it worst if we suddenly change
our habits. Make sure to keep going
with your normal life before pushing everybody else towards an economic
slowdown. In my case, there is a recession when my personal economy is
suffering.
Luisrcg
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