Fears of a Serious Recession Grow


Even the naysayers have to recognize that a 2008 recession is in the cards. US companies significantly cut payrolls and capital spending in January. This is a sure indicator that companies are feeling the recession pinch.

The unemployment rate when up to 5% in December. The size of the increase, which was comparable to increases during the 2001-2002 recession, has set off alarm bells from Wall Street to Main Street. In the past, such large increases in the unemployment rate have signaled that the economy in a recession.

The health of the employment market shapes how the overall economy performs. In 2007, consumers were shielded by robust wage growth. This helped cushion the blows from the credit crunch and real estate price collapse. Now the other show is dropping as companies cut back on hiring, put a lid on wages and lay off large numbers of employees. This spells serious trouble for the economy.

What is funny is that economists were predicting a rebound of sorts this month. So much for these pencil necked, ivory towered, geeks understanding a recession. Their tenured jobs are safe while regular folks either have a job or business at risk.

The economy has been stalled for over three months now and it obviously remains in decline. Obviously people will take a bunker mentality and cut back on spending which will send the economy crashing into a very serious recession.

Take steps now to protect your small business by adopting this stance and cutting back now. If you do, you’re likely to save your business from failure!

This entry was posted on Wednesday, November 15th, 2017 at 8:59 pm and is filed under Recession. You can follow any responses to this entry through the RSS 2.0 feed.

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