Trounce Recession

What is recession/ Down turn?
 

In economics, a recession is a business cycle contraction, a general slowdown in economic activity over a period of time. Economists officially define a recession as two consecutive quarters of negative growth in gross domestic product (GDP). The National Bureau of Economic Research cites "a significant decline in economic activity spread across the economy, lasting more than a few months" as the hallmark of a recession.
 

During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes, business profits and inflation all fall during recessions; while bankruptcies and the unemployment rate rise.
 

Recessions are generally believed to be caused by a widespread drop in spending. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation

Recession is a chaotic situation, with most of us forced to change the standard of our living. We become more constraint on our spending and more importantly our income drops. We had been facing recessions from long with the 2007-2008 being the toughest one. Is recession recurring? Yes, if we look at the history, recession is recurring, it repeats in one sector or the other in one form or the other. The end result of a recession is job loss and financial crisis. Just look back on how many people lost jobs and were forced to lead a much lower life style due to the recent recession.

People say:  If your neighbour gets laid off, it's a recession. If you get laid off, it's a depression.

Is recession permanent?

No, Recession is not permanent, it comes and goes and some are more severe and last longer than others. But history shows that recessions invariably end, and when they do, an economic recovery follows.

Are we ready to face recession?
 

The question now is how many of us are ready to face recession or how many of us feel that we will not be affected by a recession. Most of us felt the same till the beginning of 2008, when the last major recession hit the world economies. Most of our friends lost their jobs. They were earning descent salary had a luxurious life style. They had a comfortable and reliable job, which was their only source of income. But one fine day the company lets them down complaining of lack of revenue or break down due to recession. The company reduces the workforce and strives for its profit.

We may feel that my company is recession free. But the fact is no company is if the huge companies like Lehman Brothers, General Motors, Citibank can be affected by recession, any huge corporation can fall a prey to this contraction. Some day our companies can also be affected by recession.  

Who is much affect during recession the company or you? We, the people like us who rely on the company for our day to day life. There are few who feel we can survive the recession with the saving we make. Have you ever thought - How much can we save? Will our saving last for the next few months? I strongly feel no. The saving we have can help us go on say another month or two, and then we start to compromise on lot of things. US bureau of statistics reported that the economy lost 36,000 jobs in February.

We all know that fever and other small contagious disease are curable. Does that mean we love to get affected by the disease? Recession will not last long; it is followed by a recovery. Do we want recession to affect our life and then wait for recovery, or we would love to avoid it?

Now few of you will be thinking how is this possible? 

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