Let's not kid ourselves...the world is in the grip of a global recession. This is indicated by a huge number of job losses, mortgage defaults, a rising inflation rate and a decrease in consumer spending. And it isn't happening only in America. It's a global crisis where consumers are struggling to meet their day to day commitments. Providing for their retirement is a dream that appears to be dissipating right before their eyes.
Suddenly, your dreams of that RV and the thoughts of traveling around without a care don't seem that crucial as you struggle to survive in the here and now. Unfortunately, it doesn't appear that this crisis will end in the immediate future.
Fortunately, there is an upside. An economic recession can sometimes put you on a different and more rewarding course. There are certain factors during a recession that, if taken advantage of, can ensure your security regardless of the situation around you.
If you're like me, I cringe each time I turn on the news to hear of yet another business closing and laying off hundreds of staff. The tax dollar is stretched to the limit trying to support the ever-growing line of people on benefits.
Rarely do we hear of those who are actually benefiting from this recession. Yet it is important that we are all aware of how we can go about not only surviving this crisis, but of growing from it.
As one individual, there is little we can do to change what is happening in the global marketplace but we can change our view of it. We can learn to look for opportunities that make an economic recession a goldmine for a careful investor.
We live in a world where instant gratification is an expectation. We want to see things bigger and better and we want all of this NOW. Fast cars, faster jets, and even faster rockets speeding off into other universal realms.
Man has constantly sought to stretch his capabilities beyond what anything imaginable and has achieved many feats that many of us mere mortals found incredible. But, no matter what he has achieved, he continues to push the boundaries.
But, can it be said that all of these changes are for the greater good? Many have been lured by promises of overnight wealth on the internet with no effort, causing us to lose appreciation of a fair day's work for a fair day's pay. This concept is now outdated in favor of getting things done using technology with the result of getting things done in half the time.
Because we live in an instant gratification society, we find it extremely difficult to maintain out lifestyle during an economic recession. With the dwindling enterprise situation, we find it hard to start our own business because our finances are tied up with just putting food on the table and a roof over our heads. We put our goals on hold and keep on hoping that our jobs will be safe.
Many people are unaware that economic recession is actually a part of the regular business cycle. Some are worse than others but, in a sense, all are necessary in the order of things.
An economic recession will cull out businesses that wouldn't survive long term. Any good business plan will allow for survival during tough times. If that isn't happening, the business is doomed. There are some businesses that will always survive such as those providing basic needs. Food, gas, and electricity companies will always be in demand as they provide a needed service.
An economic recession will wipe scams from the market. When the economy first slips into recession, these provide false security and may thrive short term. However, as the recession deepens, people are too busy financing their survival and their legitimate businesses to bother with these fraudsters. Eventually, they are wiped out.
Economic recession also forces the governments to control their spending. They are forced to start spending the funds productively on programs that will do more than just waste the taxpayer's dollar.
It also drives prices down, thus controlling the rate of inflation. When consumers aren't spending, companies have to reduce their prices to make it more appealing. If they don't, they will lose their investment and nobody wants to do that.
There have been several recessions throughout history from as far back as the Great Depression of the 1930s to more recently in the 1980s and 1990s.
After each recession came a period of economic growth where companies were able to get back on their feet. This started the economy flowing again as consumers started spending again.
Economic recessions are nothing new. It's the way in which we deal with them that determines the effect they're going to have on our economy.