What Is A Recession and How Will It Effect You
There has been a lot of talk about the United States heading toward a recession lately. Now there is evidence that we could already be in one. What does that mean to the average person? According to the Merriam-Webster site a recession can mean three things. One – the act or action of receding. Two – a departing procession. Three – a period of reduced economic activity. Obviously we are talking about definition number three here. When it comes to the economy, a recession is not what you want. Typically the nation’s economy has to be doing poorly for at least six months before the officials start talking about a recession. There has to be a trend. There are many reasons a recession could start. Something might happen with the stock market or in the business world that scares consumers, which we all are in some way or another. Something that makes people hang on to their money instead of spending it. Reduced spending by the consumer means companies have to reduce their output.
