The prospect of a recession can be tremendously upsetting for many people. In fact, it’s been over ten years since Americans endured one of the worst recessions in history: the Great Recession of 2008, brought on by the housing market’s collapse.
A recession is a prolonged era of several months to years during which a country or region suffers from a weak economy, high inflation, and lowered purchasing power of consumers.
In financial terms, a country is going through an economic recession when the GDP (gross domestic product) is low, the unemployment rate is high, retail sales decline, and the manufacturing metrics fluctuate for an extended period.
What Causes Recessions?
There are clear and ambiguous causes of a recession. Numerous economists would differ over particular recession reasons and come up with explanations for why they might happen.
Related: How To Shield Your 401k From The Upcoming Recession
There are a few traits that most recessions frequently share, even though no two recessions are the same.
Recessions can have a variety of causes, such as:
- Excessive debt
- Stock market crash
- High deflation
- Technological change
- High Inflation
- Asset bubbles bursting
- Sudden economic shock
- Post-war slowdown
What Happens During A Recession?
Everyone can experience anxiety during recessions, especially when millions of people may lose their jobs as unemployment rates grow throughout the economy’s various sectors.
It may have a snowball effect, making things worse before they get better for the economy.
Related: 10 Things To Do On The Day The Economy Collapses
You can anticipate the following items during a recession:
Rising Unemployment
An increase in unemployment rates is one of the first things to happen during a recession. It is because firms frequently have to reduce spending during recessions, and hiring staff is sometimes one of the first costs.
Government Debt Rises
As the government works to stabilize the economy with stimulus packages and aid, government debt rises as businesses lay off employees and those employees apply for unemployment benefits.
Less Spending
Losing a job has an impact on an employee’s income. Consumers are less likely to spend when they have little or no pay, which harms businesses and stocks by reducing the amount of money entering the economy.
⇒ Learn How To Get 295 Pounds Of Extra Food For Just $5 A Week
Assets Lose Value
Many assets, particularly stocks and homes, have the potential to depreciate, which might cause investors and homebuyers to lose money or possibly go bankrupt.
How Does The Recession Affect The Citizens?
As unemployment rates climb during a recession, you can lose your job.
Because more individuals are unemployed, it becomes much tougher to obtain a new job, and you are more at risk of losing the existing one. Those with their jobs intact may experience reduced salaries and/or benefits.
They are not even in a position to negotiate for a pay rate increment.
During a recession, you may even suffer from heavy losses in your stocks, bonds, real estate, and other forms of investments. That, in turn, lowers your savings and disrupts your retirement plans.
Even worse, you can risk losing your home and other possessions if you cannot pay your expenses due to losing your work.
In a recession, business owners experience lower sales and sometimes even bankruptcy. The government finds it challenging to keep everyone solvent amid a severe downturn.
What Are The Signs Of Economic Recession?
Recessions don’t necessarily follow a pattern. However, some indicators can predict a recession.
Knowing these indications can even help you understand how to prepare for a downturn so you aren’t stuck fighting to make ends meet when the economy drops.
Check out the top recession warning indicators listed below:
Rising Unemployment Rate
Typically, an increasing unemployment rate is an indication of an impending recession.
Related: 11 Unexpected Ways To Earn Money In The Next Depression
High unemployment rates will cause consumers to steadily lose purchasing power, which will finally cause demand to decline.
Declining Property Sales
In a healthy economy, consumer spending—including the sale of real estate—is frequently high. However, the rate of property sales declines during an ongoing economic fall—in fact, it serves as a telltale warning sign of financial instability.
Inverted Yield Curve
It measures the correlation between the short-term interest rates and long-term fixed income rates per the US Treasury.
An inverted yield curve indicates an impending economic recession when the interest rates on short-term securities are higher than those on long-term deposits.
Poor Stock Performance
Because of the stock market’s tremendous volatility and the fact that declines are not uncommon, it’s not always a reliable signal of a recession.
A prolonged bear market, however, might trigger a recession if low stock performance persists for a long time.
Increased Inflation
Inflation can signify that demand increases because of rising wages and a strong labor force.
On the other hand, high inflation causes people to minimally invest in goods and services due to weakened purchasing power, bringing down the demand in this sector.
Increase In Credit Card Debt Defaults
Spending by consumers stimulates the economy.
However, while using credit cards, consumers risk getting into debt if interest rates are high, which increases the likelihood of defaults and bankruptcies. A recession may start when this occurs.
Consumers’ Loss Of Trust
Without consumers, the economy would collapse. The economy’s main driver is the consumer. They may be more likely to spend less when they lose confidence in the economy because they are under financial strain. A slowdown in consumer expenditure may indicate a potential recession.
The Bottom Line
Recessions can cause turbulent periods of uncertainty and dread. Navigating a recession can be difficult for consumers and businesses due to higher unemployment rates, company closures, and decreased consumer confidence in the market.
With this knowledge, you may create a strategy to weather the effects of the most recent recession and upcoming ones to maintain the health of your finances.
Some advice includes reducing wasteful spending, preserving your own food, repurposing old items and building an emergency fund to help you overcome times of financial difficulty.
What is interesting is when you look at where we’re at in the economic boom/bust cycle right now, and realise we’ve been dancing with a recession for a few years already… the ball is rolling!
COVID did a number on the economy – but – the Trump Administration had a recovery plan that was working just fine >>> but – just like everything else “Trump” it had to be immediately trashed and dismissed >>>
IE: Bidenflation
like shutting it down…… and shoving the vax ……..
best way to take a poll of the dumbazz “Bidens” that think they are actually a prepper >>> 15 at this posting against 67 that have a good grasp on reality and know what it’ll take to survive ….
keep that ratio in mind if you have any intentions of starting a prepper group – 25% have their head so far up that they couldn’t possibly be of any use in an emergency – most likely would backshoot you at the first opportunity …
TRump and Biden and OBUMA, Bush,Reagan and Carter and who ever are all the same and they are all you
To me it’s “interesting” and a bit maddening that it seems we’ve been in a recession quite some time and rolling to an economic collapse/ Great Depression. But we’re not to know that, hush hush.
Taxation is theft
Just look at it this way, you now fund the ukraine proxy war and will keep pumping money into a country with your taxes. You don’t get a choice in this and it shows both sides are corrupt.
Trump will not save you
nobody is coming to save you…. you are on your own ( minus the fact you should trust in YAH )
Right or left; none of them are going to save you. The party system is a divide and conquer technique to keep us all busy hating on each other; just like the race baiting is. It’s all a ploy to keep us thinking “the other side” is the enemy; “they’re the ones to blame for this mess we’re in”. The more we buy into the false narratives and enjoy the finger pointing “across the aisle”, the more we play into the agenda of the self-appointed elite. They love it when we fight amongst ourselves instead of realizing it is they (the “elite of all the world’s governing parties/corporations) who are the real enemy. We the people could join together to reign them in, but we’re too busy infighting and trying to make ends meet.
FINALLY SOME ONE SPOKE THE TRUTH . It’s like watching a tennis match
We been in a Recession, senses bush became president, because of a 20 yr war.
obama was just as bad…
It’s been building, when the idiots were so pissed at Trump, that they would burn our own country down, and at the time of Trump the country was coming around for the people of this nation.
Now look @ us. Third world country and still falling into the dump.
God removed his loving hand from this nation and now we will face what we deserve.
“We” let them kick GOD out of this country…
stay sharp
It’s not over yet, it has only begun…
Better vote them out, if not then, we really should shut our mouths and take it like a man.
PS: only you can make a change… good or bad, the choice is yours
Say, go look up. The commonwealth games and look @ it close, they are bringing in the antichrist and satan.
I’m very confused. I’ll bite.
What has the Commonwealth Games got to do with the Antichrist?
sandgroper
This is why so many will be DECIVED because they just lack the ability to read the bible and learn and understand GOD words and His ways.
Read the bible and ask for GOD to help you understand his words. Quick…
stay sharp
Yes! I’ve been saying this for quite some time… Our country has fallen but nobody wants to see (or admit they see) the Big Elephant in the room!! I pray for my children and grandchild every day!! I really don’t see it getting any better. And we’ll have to endure some hardship before the Good Lord returns but even in that we all just need to remember He’s never failed us, and He won’t in this either!
Elohim has pushed the protection our country once had from him. Because we removed him from schools, family , history and everything else.
voting is dead and our wonderful republicans will sell out your Elohim given rights faster then the left will. The best part is you cheer them on with this is the 4d chess we need to do to win.
No, we haven’t been in a recession since Bush. *smh*
That doesn’t mean the country hasn’t been going to crap, that’s an entirely different thing.
Recession or going to C*ap, same thing. Call it what you will…
Valerama: Completely agree with you. Reagan took us out of the Carter Depression. Clinton dumped us back in it. W got us out, Obama tried to dump us back in. Trump saved the country, and now soros, own owns the dnc, is trying to reenact the Weimar Republic; wrecked economy, open borders, divide the people, and so on. It goes back to FDR, who adopted nazim (elitist communism) as the dnc platform. Everything we see today is out of the nazi playbook. Yet, people like raven will argue against republicans ! Why? to discourage us from voting to stop liberals. niio
A recession is defined as 2 consecutive quarters of gross domestic product (GDP) decline which the 1st 2 quarters of 2022 occurred. A turd could be called a tootsie roll but it is still a turd. The current USA foreign policy is far lower than pathetically poor. The consumer is responsible for 70% of ALL economic activity and the consumer has been shorted continually on labor pay since at least 1960 and the high-paying manufacturing jobs have been getting off-shored since at least 1990–mainly to China. I totally agree that our country is going to crap; and so sadly, the future looks extremely bleak with even worse hardships for the common citizen.
Man red ant, you sure tell it like it is!!! God has took his hand off this nation for sure. Butching babies daily, men tying to be women,,women trying to be men? Had a trans whoever at the White House talking with the president? Who on Gods green earth would have dreamed that nightmare up?? This is just the beginning, we are headed into unbelievably sorrow!! May God have mercy on those of us? Stay strong and pray!!!!
American
To answer your question, on who would have dreamed this up, “satan”, when he was kicked out of heaven and when his belly landed on this earth.
Remember that all these people that have wealth and prosperity, they only accepted what the devil was trying to temp Jesus with, when he was on the mount.
Now they have to go along with satan in order to keep what they have already lost, everything… That is where we are, END TIMES…
stay sharp
AMEN!!!!!!!!!!!!!!!!!!!!!!!!
Rumor has it there will be a RED WAVE in November. That is likely true, however, everyone need to understand that November wins are not a fix. It would only be a start and only a start if Republicans actually do what in necessary to begin turning things around. Correcting DemoFacists destruction will be a never ending and difficult fight.
Yes, never ending. God is gracious. We can do it.
Alan, and He led us out of it many times. Walk in His beauty
Bush Did us no favors getting us into two wars we didn’t belong in, and bailing out the Banks. He Spent like a drunken sailor, and He and Cheney knowingly got us into two wars we should never have gotten into and we are the ones who started them. They both got rich from them like the rest of the Military industrial complex, just like Eisenhower said would happen if we didn’t watch that element of our society (Many NGO’s in the MIC). Bush was just as Evil as Clinton and Obama, he was a wolf in Sheeps Clothing. Do Laud Bush, he is as his father was a scumbag. The Central banks want a collapse of the US economy and the US Dollar, they want the Global Currency Reset, and they don’t want the Global Current Reset that The BRICS Nations are currrently trying to institute (Brazil, Russia, India, China, South Africa, and now Turkey and several other Nations are joining them to establish a currency not based on the US Petro Dollar. As You have said the ball is rolling, who’s going to win this was of the Global Dollar? We better all hope it isn’t the version the Central Banks of our World want. Their goal is to rule the world completely with social credit scores for every person that determines what the Global Gov’t will let you do or not do, they will cut your money off when they don’t like what you’re doing, and you won’t be able to survive on fiat “cash” it will be non-existant.
All true!
The US has turned its back on Christ. Our country is now balancing on going against the Constitution. Our problem is not voting Republican, which i do, but in seeing souls saved. God changes hearts by His grace. If we lose, which we will in several years, then our freedom is gone and the world goes too. This ushers in world unity, which will bring the Anti-christ. Daniel 9-12 and Revelations 10-12 prophecy this. Please pray for our revival to Christ as a nation.
I for one and happy that so many of you have direct pipeline to the Lord. All of the comments about our nation being no longer blessed are crap. FIGHT people! FIGHT. I do not have kids and am 61 yet I attend school board meetings, vociferously vote no on levy’s. I hammer them at every turn. Don’t keep buying the crap of “it’s for the children”.
Good grief grow a spine and fight.
Consco
We have been fighting for over, what 2000 to 3 or 4 or 5000 yrs. know.
It is time that we let the GREAT CREATOR come and finish the fight.
He is getting ready, HOPE everyone else is ALSO.
Remember this is satans world, not ours.
stay sharp
Conseco, good to see you posting. I’m not receiving replies to post, a number of us aren’t.
We all have a direct line to the Lord. We are fighting. Look at how badly liberals have it now, their own followers are rising up against them. How do you think that happened? Years ago at a pow wow, we started to pray against ungodly power, wealth, and protection of liberals. We obey the Word and fight because We, the People, are supposed to tell politicians what to do and say. They weren’t appointed by God but were hired, and an employee has no more rights than his boss gives him. Look at what soros picked to be president. Who he picked to be leader of the House. Cali went into drought the same year it went blue. The Northeast is looking at a very bad winter. One of the first signs of destruction is the economy. Plagues, then wars and unrest. We’re moving into a Weimar Republic scenario, where communists destroyed Germany to set things up for nazis to take over. soros is behind it, and throwing money at antifa and others. Liberals have hid what the WR did, open borders, special right for gays, massive inflation, began the destruction of Christianity. The list is long, but note it begins with FDR who became a nazi in the 30s. Anything hitler wanted, liberals do, new age, space aliens, and now human sacrifice and cannibalism is becoming more open. Dems love terrorists because hitler had only glowing things to say of them. Arrinius, Greta Thunberg’s climatologist great-grandfather insisted that we mongrels were causing the climate to shift and we had to go to save the planet. gates has been exposed, Pfizer is being exposed. niio
And we made a mass murdered the “most important Doctor in America.” WTH are we thinking?
Unless and until the GOP starts fighting back and even start using dirty tricks like the dems do, nothing is going to change. When they are in charge every one of them is in lockstep with Scumer and Pelosi and will do anything they are told. The GOP always try to be the nice guys and play “fair”. THAT HAS TO STOP AND THE GOP NEEDS TO TAKE THE GLOVES OFF!!!
Bubba: Listen to Kari Lake (R, Arizona). Gov Abbott, de Santis, ad a lot of others. Ocasio-Cortez has been run out of meetings by people who used to vote for her. biden is laughed at to his face. Pelosi hasn’t been sober for months if not years. The black plague of black conservatism is killing liberalism. Hispanic conservative Repubs are destroying liberal politicians’ dreams of a nazi America. Liberals are committing political suicide over it. God is against them but you need to pray and act in faith to change this nation. We’ve been doing at pow wows and everywhere. niio
Lol Republicans are the same as democrats
I remember Dad when Carter pulled us into a depression. He was stunned at the idiot. But, he was born in the 20s and knew too much about recession first hand, and far too much about depressions and the liberals. My parents were preppers by default. Most kids raised by family like that are. We think, not just react.
My stepmother was in the Schutzstaffel, as were two aunts. None of them wanted to be, but were forced into it. You joined or your family suffered for it. They tried to teach him, but he refused to listen. I learned a whole lot more about nazi politics and American nazi politicians than any kid should have to, but it stuck.
Now, I had a blessing in disguise. The blower fan on the furnace broke down, so no heating or cooling (it’s only been into the upper forties at night, so no real complaints YET 🙂 When I was told by several repairmen the furnace was too old (over 30 years old) and parts were like hen’s teeth, I contacted the bank that has the mortgage and the loan department offered me the 10K needed for a new furnace, and another 10K just in case. And, refinanced, the interest rate will be lowered. God blessed me. He blessed me by finding this house in an area of Arizona I really had no desire to live in but thank Him ever single day for bringing he here. He blessed me by giving me a desire for an antique gas range that I got for half its value. And, a day before installing, the old electric range popped it’s cork. BTW, the gas company sent a tech who installed it for me, gratis. Had I gotten the place I wanted, near the border, I would have been swarmed by mojados and the planting zone is colder than here. No gardening year-’round, no citrus. Higher taxes, and higher bills, much higher crime rate (thank you, Brandon, for that). Prep like your life depends on it. It does. With this blessing from God, a lot of good things are going to happen around here. niio, walk in His beauty
if you didn’t live thru the Carter Years – be thankful for the omission – scary freaking times for anyone trying to get their life started ….
25% interest on a mortgage – IF you could begin to find any $$$$$$$$$ being lent
along came a guy named Reagan most people only knew & remembered from his movie & TV career selling Borax soap >>> walked into the White House kicking azz not that much eazier or diplomatically than Trump >>>> just what this country needed – A LEADER
first challenge he solved very simply by telling striking air traffic controllers to go fuck themselves and replaced them >>> Teddy Roosevelt’s Big Stick and MORE
One Reagan inspiration I’ll always remember – the US military was more fucked than even Biden’s Pink Pentagon >>> military wearing civilian clothing to hide behind – Reagan gave the word to either wear the uniform or get out – they weren’t needed in his military ….
LEADER !!!!!!
My dad was b. 1915 and mom 1928 so both lived during the Great Depression and WWII where my dad was a b-17 pilot over Germany. He later was a farmer of 3 farms, raised livestock and had a huge garden and orchard where they sold produce for 30 years. Prepping was a way of life, not a cool title. thank God those lessons of canning, freezing, drying and even sewing were learnt by me to this day. I have my own “mini farm” of 4 acres where I grow most of my own food including my chickens. I have good relationships with other local farmers for rest of meat, dairy. I tell people all the time “I was a prepper before it was a title.” Same thing with Organic. In the 50’s thru the 70’s EVERYTHING was organic. In my world, my food still is.
Survival mode activated
The Commonwealth games and the antiChrist explained.
This 2022 Event Just Revealed the Antichrist to the World
regan is correctly termed red ronnie & was an outright communist.stop using nazi and start using communist.who murdered 80+ million?stalin – why is hitler the most vilified and stalin gets a free pass?hitler changed the financial system based on labor-no central banks-biggest threat they ever had.he was going to save europe from the communists-he was anti communist, anti mason.he shut down the lodges in europe.go watch dennis wise the greatest story never told.fdr, stalin/uncle joe, and churchill all masons. want to see the real holocost and not the invented one? look what was done to dresden after the war-more germans murdered after the war.look up eisenhauer’s death camps-open air- no toilets, water, food.eisenhauer hated the germans and murdered untold numbers of them. read the patton papers – patton realized he was fighting on the wrong side and he told his wife and friends he was returning and going to tell the truth. no one’s mentioned nine one one.that was your government and israhell.do you know who the destroyers are that head pharmakia, education, finance, medical, etc.?all from that same tribe.to quote maurice samuel, ‘we jews, we are the destroyers and will remain the destroyers.nothing you can do will meet our demands and needs.we will forever destroy because we want a world of our own.’ they created the weimer republic and are recreating it in all the western white countries. they are geneciding the white race.we were 30% of the population and now 7-8% because they’ve sent us off for the banker’s wars, and the jab is race based-primarily killing the white race.they are of their father John 8:44.we need to follow 2 Chronicles 7:14.
Common Core or Woke? Just asking.
One of the things you can do to help your community’s economy, not just in a recession, but any time, is support local businesses that need your support more than large, wealthy, multinational corporations. After we lost a few local favorite restaurants during covid, we’ve made a pledge to do business with as many local places as we possibly can from ow on, and avoid big business whenever possible. Sadly, it isn’t always possible to do anymore. It seems like there’s nowhere to buy basic necessities except big national drug-stores and box stores. Even second-hand stores have largely become big chains these days! But we’re trying to seek out the remaining few local pharmacies, book stores, etc. that are still hanging on by a thread.
One area where it’s really easy though, is with food, both eating in and out. Local restaurants are usually superior in food quality and service anyway; I’ll take our authentic neighborhood Mexican restaurant over Chili’s fake, over-priced franken-food any day, and fried chicken almost anywhere beats the nastiness that KFC has become, for example. Also, most towns now have farmer’s markets where you can get local produce, honey, eggs, etc. and keep your money in your community.
Now if we can just break our dependence on Amazon. Working on that…
Some vary good posts put on this site,
Something I do not GET,
With all the damage done under Biden,
Those who support the Dems .
How come they thinks it all ok,
And Biden was trying to take credit for all the good things Trump
put in place,
and he scraped every good thing Trump did for this country in his years.
Tell me what good has Biden did for the American people under his term in office,
Can any one show me a list,
This is what there not saying,
Add up the + and the – and see what list is longer,
Or did you want me to do this for you, + ——-=————————–=——-+———————- I have to wonder .
Those standing up for Kamila now,
Do they thing the crimes they have done will now be protected if they support her.
Its the only reason I think they will vote Dem this Nov 5,
When Trump was in office ,Our gas prices were between 2-3 bucks and between 1-2
now there back between 3-4 bucks a gallon, and even making it more for the Truckers,
Over 4 bucks a gallon, And making really tough on the independent , owner operator ,
Do I need to say more, If any one knows more ,
Put a list on this site , so many can read it.
Thank You for your time,
Larry.