What is a Recession and what happens in this period?

Own Your Family

What is a Recession and what happens in this period?

Play Episode Pause Episode

Mute/Unmute Episode Rewind 10 Seconds 1x Fast Forward 30 seconds

00:00 / 00:07:50

Amazon Apple Podcasts Google Podcasts Player.fm PocketCasts Podbean Podchaser RSS Spotify Stitcher YouTube

RSS Feed

Share

Link

Embed

What is a Recession?

A recession is a period of time when businesses are struggling. GDP, which measures the growth of goods and services made in a specific period, is lower than the growth of the previous period. A recession can last for 8 months or longer.

Watch the full episode of What is a Recession and what happens in this period?

What is a Recession and what happens in this period? Own Your Family

What happens during a recession?

Recessions have a negative impact on employment, production, and consumption. Consumers have less income and are likely to spend less. The decrease in spending reduces the sales of goods and services of businesses. They, in turn, are likely to lay off workers and decrease output in order to match the reduced demand. This puts even more people out of work.

When the economy is in recession, most families cut back on grocery and restaurant meals, clothing purchases, and vacations. Families also reduce spending on shopping and use the extra room in the budget to save money. It is important to have additional sources of income when the economy is down.

Disclaimer: We are not financial advisors. The content on this website and our YouTube videos are for educational purposes only and merely cite our own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary. Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won’t experience any loss when investing. Always remember to make smart decisions and do your own research!