“It’s a recession when your neighbor loses his job; it’s a depression when you lose yours. Harry S. Truman”. The US defines a recession as a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.
Since the US economy represents about 20 percent of the global economy, trouble in the US can spread more or less quickly to throughout the world causing what is called “Global Recession”.
How did this Recession start ?.. it started with the crisis of credit. Check out the video below to understand the whole concept
The Crisis of Credit Visualized - Part 1
The Crisis of Credit Visualized - Part 2
What does it mean to Be in Recession, well it means..
1. Lower Incomes
2. Rising Unemployment
3. Lower inflation
4. Higher Government Borrowing
5. Fall in sales of houses.
6. Fall in Business and consumer confidence
7. More spare capacity in the economy.
Can this Recession effect me ? Why can't it... thousands are already impacted by losing their jobs..
Layoff Tally sheet 1 Layoff tally sheet 2
So what is the government doing about it ?... Well they are releasing economy recovery stimulus packages.
The recent being one by the US