Economic recession, when you consult the books, is actually pretty common. Economy like everything else in life is a cycle. There are ups and there are downs. After enjoying fruitful years in the past, this is United State’s time under the wheel. Unfortunately, what is different from this year’s economic recession is the fact that it is much worse than the recession times of previous years. This is perhaps brought on by companies that are not performing well and the rising rates of foreclosures in the real estate industry.
But like everything else, dealing with economic recession is easier than it seems especially if you do have a steady income that you can rely on. The only secret to dealing with the economic recession is to save up. Here are some of the things that you can do to better deal with economic recession.
1. Don’t waste
Although this should be done whether there is economic recession or not, learning to save whatever you can is a crucial part in surviving these hard times. And what is more, it is so easy to do. You only have to remember to only use and buy things that you feel you can use. You can start with telling your kids to only put food that they can eat on their plates. If they finish them off, then they can get a second helping. You should also tell them that they should clean their plates all the time because food is expensive. This is a great thing to teach your children as this will allow them to learn how to live during tight times.
2. Plan and organize your life
Planning can save you a lot of money, energy and gas. In fact when you organize your schedule, you will see how you are less stressed out about things. Your activities and errands will flow more smoothly and things will be easier to do. For instance, when buying food it is good to have a list of items that you will be buying. This list of course will depend upon the meal schedule that you have already prepared for the family. That way, you already know how much you will have to purchase. No wastage. No leftovers. This saves time and money.
Another area that planning can have a benefit in is in saving gas. When you have mapped out your activities for the day, you can plan where to go first and then the next. This way, you don’t have to go back to the same way you traveled or go on a separate trip just because you forgot to take the clothes to the cleaners or you forgot to go to the grocery store.
3. Take advantage of discounts
Because there isn’t much people buying stuff, a lot of stores are constantly devising ways to get customers in. Take advantage of special promos and discounts.
4. Save money
During an economic recession, you won’t have any idea what will happen. The best thing you can do is to prepare for any eventualities and hope that you will not suddenly lose your job or suffer from the effects of the recession. To be sure, it is good to save money in the bank. Cut back on expenses that are not important.
That way, you can save enough for the future so that you will have something to use just in case.
Filed under Recession by on Feb 4th, 2009. Comment. 
Economic recession may be a new term in your ears but in essence, it is actually a common economic term used to refer to the slowing down of economy. You see, a country’s economy follows a natural cycle. Sometimes it’s up and sometimes it’s down. You just don’t realize that it’s happening because it has not gone this bad since the wall street crash decades before. Now, United States is feeling the heat once again with the rising costs of living and transportation as well as the crash of the real estate industry and just recently the crash of the top banks in the US.
During these times, all you can do is to hope and pray that you will still be able to keep your job and survive the recession until everything is ok again. To do this, you need to save up and make sure that you are ready for every eventuality. Here are some tips on how to deal with every American’s concern right now.
1. Be prepared
What you know cannot kill you. There is nothing wrong and being prepared for potential problems. Even if right now, you don’t have any problems financially, it pays to get ready for the coming challenges. You can do this by saving up some money and putting them in the bank. That way, you can use something for the rainy day.
Think of other ways that you can be prepared and plan around it. Look at your expenses every month and check where you can cut off the extras. With them side by side, you will know just where you are overbudgeting. This is also an excellent way to plan and save for future expenses like for instance, your children’s tuition fees.
2. Save with your consumption
Another way to do this is to make sure that you will be spending less for the household. You can do this by cutting expenses that are not necessary like in luxury items such as clothes, entertainment, trips. If you don’t need it, don’t buy it. Only purchase the items that you know you will be using.
You should also save with your consumption of electricity, gas and water as these are areas that you may not notice you are overbudgeting but usually you are. For instance, ironing clothes piece by piece and not by bulk consumes more electricity. The same goes with leaving the door open when the airconditioning unit is turned on. Always make sure that you turn off the TV after watching it or to be sure, purchase a unit that has a programmable on and off button that you can use. There are also airconditioning models and heaters that you can buy that have this feature.
3. Don’t panic
Economic recession as mentioned to you is a cycle and usually it will have an end. There is no need to feel panicky and feel that all hope is already lost. The more that you feel the panic, the more problems you will have because panic can make you do things without thinking about it or make you so nervous you will be mentally blocked out. So just ride the waves and go with the flow. You’ll never even feel that it’s there.
Filed under Recession by on Feb 2nd, 2009. Comment.
There is a lot of talk about economic recession nowadays. People are complaining how economic recession is making their lives worse. The economic recession often refers to the two quarters of negative economic growth. A severe recession which lasts for more than two years, becomes a depression.
A recession is characterized by rising unemployment, increase in government borrowing, decrease of share and stock prices, and falling investment. All of these characteristics have effects on people.
People have a general understanding of the recessions’ negative effects. But how does an ordinary consumer get affected by a recession, employment in particular is not really clear.
John Schmitt and Dean Baker released a new report on the possible impact of the recession on What We’re In For, Projected Economic Impact of the Next Recession this year. In their report, the 2008 recession in United States is perceived to raise the national employment rate between 2.1 and 3.8 percentage points. This would be an equivalent of between 3.2 million and 5.8 million unemployed Americans. CalculatedRisk stated, based on this report and United States’ recession history, that economic downturn can be measured in how high the unemployed number of people rises.
Based from the United States recession history, there had been a handful of times when the unemployment rate has risen during an expansion. Unemployment had risen by 0.5 percent or and there were instances that it is less. But this scenarios happen when the country is not under any economic downfall. When the unemployment percentage reaches 0.6 percent, the economy is described to be under a recession. This year, the U.S. unemployment rate is nearly 1.1 percent.
Economists, until now have not yet formally labelled the economic downturn of the United States as an economic recession. Amidst falling home equity, the rising cost of food, health care and housing along with disturbing number of unemployment, economists is still claiming that there is still growth in the economy, even though it is small. People found it unnecessary for a formal announcement to actually feel the recession coming in.
According to Miami Herald, people unemployed are starting get desperate. The number or people out of work for six months or more increased from 160,000 from July to August. There are 10.7 percent of people who would like to have a full time job but
are unable to do so. Due to unavailability of working positions.
It does not matter if you have a college degree under your belt. College graduates this year are also experiencing the highest unemployment rate since 2004 with 2.7 percent. Meanwhile, 9.6 percent of high school graduates are unemployed and this figure is also highest rate since 1996.
Most of the job losses are in the manufacturing sector, which lost 61,000 jobs this year. In the manufacturing industry, Miami Herald cited 20 percent of job loss even though the export numbers are increasing.
Even though the pay or salary is increasing, a 3.6 percent increase compared to 2007 salary, it is insufficient compared to the fast rate of increase in the prices of primary commodities. The consumers’ buying power is still low. Food and beverage costs are 5.8 percent higher than 2007.
For those who were left employed and thanking their lucky stars, there is still a hitch. Companies are already cutting the health coverage for their employees. Currently, $694 and $3,281, respectively, according to the most recent data by the Kaiser Family Foundation.
Economic recession is an event which is very difficult for everybody. Hopefully, the real economic status will be recognized immediately to be properly addressed and solve.
Filed under Recession by on Jan 28th, 2009. Comment.
Economic recession is gripping the United States right now and people just don’t know what to do about it. In truth, economic recession isn’t something new anymore. In fact, it has been happening all through out the decades. People don’t just know about it because it has not been as widely publicized as now. This is perhaps because of the ongoing political race between the Republican and the Democrat. And mayhap also because, the country has never experienced such downturn in economy than now, with losses in the real estate, banking and insurance sectors.
Economic recession is actually a term used to refer to the slowing down or downturn of the economy after a period of upturn. You can better picture it with a cycle that often turns. Economy is sometimes rosy and bullish but after a period of progress, it will slow down and become bearish as what they use in the stock market.
The cycle of economy
Often, economic recession is not a problem as the government’s financial sectors have solutions for it. One of the most common is tax cuts where the government gives up a portion of their income and gives it back to the people so that they will have money to buy goods. When consumerism becomes good again, companies who lost a lot of money during the period of downturn and low demand will regain their losses. This will lead to the hiring of new people and increasing their production. More supply in the market will lead to lower prices which will hopefully encourage higher demand for products. Thus, ending the recession.
Easier said than done
It is however easier said than done. Sometimes even with tax cuts, the government cannot balance the economy. This is especially true if the country do not have much budget to augment the situation or if there have been occurrences that are outside their control.
For instance, the problems in the real estate industry and near bankruptcy of a lending firm associated with properties are not exactly brought on alone by economic recession. Problems in the company way way back have contributed to its losses, only aggravated by the current economic situation. The same goes with the problems two major banks in the United States is experiencing right now and also the losses that are beginning to show from the portfolio of a multinational insurance and financial firm.
All these are not all the fault of economic recession. However, what is happening to their company is made much worse by the economic downturn as people will not spend as much. Because of the hard times, some will not also be able to pay their loans or pay off their mortgages like before. If a company has a solid money background, it will not matter as its assets can absorb the losses. Unfortunately, if a company is already suffering from problems even before economic recession can make it bankrupt.
Although economic recession is basically something that happens to a country, individuals are affected not only in the country where it is happening but also worldwide. This is especially true if the company has interest worldwide or the currency is being used all over the world. There is however not much that people can do except take a calming breath and just take one day at a time, hoping it will all come to an end soon.
Filed under Recession by on Jan 26th, 2009. Comment.
Economic recession is defined to be a period of time (two consecutive quarters) where there is dismal or negative growth in an economy of a specific region or country. Economic recession has different effects on each sector of a nation. A particular sector could experience an impact that could distinctive only in his or her sector.
Women comprises half of the world’s population. During recessions, there is a relative downturn on women’s employment that ever before. Before the United States’ recession in 2001, women were not greatly affected by the economic recession. However, after the 2001 recession in the United States, omen started losing a lot of jobs.
Women also experience low employment rates. Families rely on women’s employment to boost the family income during a recession. According to the United States Bureau of Labor Statistics:
1. When women lose jobs, families lose a substantial share of the income. Women salaries are said to be one third of the whole family budget.
2. Over the past 30 years, families who have a working wife have seen real increases in family income.
3. During the 2001 recession, women were hit harder by unemployment than men.
4. After the recession of 2001, women were able to get back to their jobs but where unable to gain or experience any increase in their employment rates.
5. Women are said to be harder hit by the 2008 recession since women are disproportionately represented in state and local government services.
Women are also greatly affected by job losses during economic recession. Women are said to be the last person to be hired, but the last person to be fired. Unlike women, men shows stable numbers since United States had experienced the economic recession
Between March 2001 and August 2004, women lost jobs in a number of key industries. Women lost 347,000 jobs in information alone. In retail industries, women lost 367,000 jobs. The biggest lost will be in the manufacturing industry which cost women over a million jobs. These numbers are just in the United States alone.
Unemployment rate among adult women workers rise faster compared to men workers. From 3.8 percent in March 2007 it went up to 4.6 percent in March 2008. There is also a significant effect on the wage of women compared to men. Women’s wages are more unstable than men’s wages.
Women have the tendency or risk of seeing large drops in income than men do. It has been culturally imbedded (based on gender analysis of events) that women’s income just fill in the disparity of men’s wage in terms of providing for the family. Thus women’s wage not being a major source of funds is more at risk of deduction.
In developing countries, women are facing poverty brought about by economic recession blowing out of proportions. With lack of work opportunities and immense poverty, women are forced to enter into prostitution and white slavery.
When economic recession hit in Asia in mid- 1997, women was the hardest hit by the crisis. Many women who have entered these industries come from rural areas because they could no longer sustain themselves and their families. Because of the recession, a lot of employees were released from their work. Women, carrying the burden of providing for their families were provided no other options.
Southeast Asian countries were deeply affected by the financial crisis and were left with social scars. Whenever economic recession or crisis similar to this happens, women and children bear the scars.
Filed under Recession by on Jan 24th, 2009. Comment.
