What are the causes of economic recession?
The world is facing too many crisis. If you think global warming is worst? Then you haven’t feel recession at all. Beware because people are experiencing recession today. Informed yourself for you to be ready during recession.
What is recession? Economists tell us that a recession is a general slowdown in economic activity over a sustained period of time or a business cycle contraction. Moreover, it is during this time that many macroeconomic indicators vary in similar way. Looking at the bad side of recession effect include slowdown of Gross Domestic Product (GDP), employment, investment, household income, business profits, investments and many more.
Some businessmen claim that there is a recession every five years. If this is the case recession is part and parcel of business or of the economy in general. What then are the causes of economic recession?
Each recession may have its own specific causes. As stated earlier, recession is part of a business cycle. With the previous recessions, here are the identified causes: decline in GDP growth, falling housing prices and sales, and a drop-off in business investment. The result of this slowdown is be the falling employment and the increase of unemployment. Is there what we call as recession proof businesses?
Yes there are recession proof businesses. People may feel affected with the recession but still there needs and wants are there. Most especially the former, it cannot just be ignored. These jobs are webpreneur, tutoring, housesitter/petsitter, professional organizer, independent avon sales representative, personnal services (more on errand works), and secretarial services. These jobs may not really be appealing but there is money that you gain out of any of these.
When there is recession, it does not mean that life ends there already. Life must go on and will continue to go on. Figure out how to survive the great depression. Do not just sit in one corner and wait for miracles to happen. Although miracles are true, it does not happen all the time. You need to help yourself and your family to survive. You need to do so so that you will not be at the losing end. Looking at each individual person, many experience crisis because they do not have the knowledge of financial management. Or if they have, they just do not apply it. Recession is a reality this time, so have a crisis management plan. More importantly, you have to work out your plan.
Why don't you start one of those recession proof businesses? Look for ideas on how to be a webpreneur in the internet. Being one entails big amount of money. What you need is only a computer with an internet connection plus your effort. Tutoring is also available online or offline. To survive during this recession time, the key is your creativity, time management and industriousness or diligence. If you have a skill which you really are good at, you can use that skill by offering tutorial services. In that way, you will be enhancing your skill and at the same time you are helping another person to learn.
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
Dr. Arnold Nerenberg Is A World Known Psychologist That Will Help You Battle Recession And See Hidden Opportunities During Hard Times That Will Let You Achieve True Wealth During Recession And Actually Be At your Best. For More Information Visit AskDrNerenberg - Recession.