“Oh no! We’re in a recession. Grab the shotgun and oil lantern Paw, we gots to go find us some dinner.”
People hear recession and think disaster. It’s recession, not regression.
Here’s the thing with most recessions, you don’t know you’re in one until it’s over. We are currently waiting to find out what the next quarter’s GDP is. If it’s down, we WERE in a recession during that time. But knowing you were in a recession doesn’t mean we still are.
If in the first quarter we were down, and the second quarter down again, we were in a recession. But we don’t know the 2nd quarter’s numbers until AFTER the second quarter is over. If in the 3rd quarter we find we were up, we spent the entire 3rd quarter talking about a recession when at that particular time we weren’t even in one.
The mental state we put ourselves in when the word “recession” is uttered is toxic. All these layoffs you hear about are not because a company is in trouble, it’s that they think they’ll be in trouble later. Think of it like you’re expecting to lose your job, so you go ahead and tighten up the budget. If you don’t lose your job, you start spending again. The companies that have been laying off left and right will be re-hiring just as quickly over the next few years. I’ve spoken to many people at work that have stories like “I got layed off with a 6 month package, they hired me back after 4 and payed me 25% more for the same job.”
As soon as the country perks up, hiring will resume, you’ll start spending again, and loans will be a free-for-all.
Layoffs suck, recessions suck, but you do more damage by sitting around being depressed. Stop living in fear of the RECESSION. Welcome the damn thing so we can move the hell on.
 By The Weakonomist |
The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice. |
| Related Websites |
Be First To Comment!