Time for a Better Definition for Recession
We might be be facing a recession. Again.
Every week someone new says this. What does it really mean?
According to Wikipedia:
The U.S. based National Bureau of Economic Research (NBER) defines a recession more broadly as “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”[1] A sustained recession may become a depression.
Let me say that in English for you: A recession comes when people stop buying things. A depression is when they keep not buying things.
There are a few things that are currently making people stop buying things:
- Groceries have suddenly become more expensive
- Gas and home heating fuel has suddenly become more expensive
- People are unable to get or afford any more credit
Until these get better, we’ll be in a recession. How long do you think that will take?
Our country was also hit hard by the Economic Recession. At least we are seeing some signs of economic recovery now. I hope that we could recover soon from this recession.
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during the height of the economic recession, our online and offline business in the US have suffered some major drop in sales. now our sales are getting slowly back to normal.