Economic Recession
Finding a Silver Lining

What is an economic recession?

In economics, a recession is defined as a decrease or the negative growth of a country’s GDP or Gross Domestic Product in a period of at least two consecutive quarters. It is a downturn in a country’s economy and it causes a lot of consequences or negative effects to a lot of people.

A normal recession usually lasts for more or less one year. The recovery period for an economic recession varies; some upturns are slower than the others. When an economy goes beyond recession, it is said to be under the state of economic depression.

What are the causes of a recession?

According to, “An economic recession is primarily attributed to the actions taken to control the money supply in an economy. The Federal Reserve is the agency responsible for maintaining the delicate balance between money supply, interest rates, and inflation. When this delicate balance is tipped, the economy is forced to correct itself.”

Oil prices and wars are some factors that are also said to cause a recession because these affect the growth of an economy. A recession caused by these factors tend to have a quicker recovery compared to other recessions in the past.

What are the effects of a recession?

An recession has a lot of effects which include unemployment or mass layoffs, decrease in housing prices or property values and decline in the stock market.

How can you prepare for an economic recession?

There are several ways you can prepare for a recession. Study if your job or business is still stable. If not, try to look for other jobs or businesses that would survive the recession. Research careers that will endure or are not directly affected by the economic recession. Avoid those risky jobs or ventures.

Finding other income opportunities will also help you. Consider building a legitimate online business. You should also start saving your own money and paying your debts. Plan your budget, avoid buying or spending for things that you don’t really need. Spend less than what you earn.

What could be the benefits of a recession?

A recession often leaves individuals with a feeling of heaviness, but the truth is this is a time when opportunities for growth can be present.

It is said that a recession can help cure inflation. Inflation is the increase in the price of goods and services over a certain period of time. During a recession, prices of goods and services are lessened and consumers almost always receive more value for their money.  Because of the affects of a recession to the inflation, houses become more affordable and more opportunities have rewarding investing are available.

A recession also affords lessons to business owners who have taken big risks before and did not save any money for the future. It is also a lesson to the government to reassess their spending behaviors and general budget.

Investors can also benefit from the economic recession. Smart investors are able to buy assets with cheaper prices from individuals who are panicking from the economic recession...and there are also fewer competitors.

It is also the best time to start your own business, but it still depends on the industry. Large companies are struggling with the recession which makes them a weaker competitor. For more on how you can start your own business online visit Manifest Passive Income.

For more information about proactive things you can do during a recession use the following links:

Recession Proof Jobs

Recession Definition

Recession Proof Businesses

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Learn how to make the most of your money grow. See the Recession Investing page.

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