Final Blog: What is a Recession - Connections to IHSS Economics Intro

Asher Forman
Mr. Roddy
IHSS
13 May 2019
What is a Recession - Connections to IHSS Economics Intro
     A recession is essentially a huge downfall in the economy, and it affects everyone. Although, how does a recession start, and what are the impacts? Surprisingly, this economic downfall occurs after a large chain of unfortunate events. The first being a sudden slow in employment from factory jobs. When these jobs start to become a lot harder to get, a sudden demand for items starts to become smaller. As people don’t want to buy products anymore, companies start to slow down in business. This means that business’ aren’t bringing in as much money. Now they can’t afford certain things such as hiring a bunch of new employees. This means that companies have to start either fire their employees, or just stop hiring new ones. Once this happens, people then begin to realize that the recession is hitting them with full force. The employment rates usually stay below 10%, which is high, but not as high as the Great Depression, which was 25%. As the recession goes on, it gets even worse. Companies lose even more money and eventually have to file for bankruptcy. People are being fired from their job as their job can’t pay for them. Not just, but people also have to leave their house, because they can’t afford the payments. A recession usually lasts for around 18 months, but people are still affected even after the recession ends (Amadeo). It is very scary to think about how so many people can be harmed by a recession. If a person is living from paycheck to paycheck, and a recession happens, then this person is in some serious trouble. This is because the only thing that is separating this person from not being able to afford anything is their job. Although, during a recession, it is likely that many people will lose their job. So now, this person has lost their job and has to worry about what they're going to do next. They can't pay for food, their house, and other basic things. What will they do next? This is all very scary and daunting, as this could happen to any hard working person.
     Although how does this relate to what we learned in IHSS. Well, we covered an intro section around Economics in the IHSS curriculum. Our group talked about economic terms, crises, seminars, sharing economies, and more. In many recessions, there is a vast drop in the stock market. We covered a lot of this in economic terms, such as Black Tuesday, which was a 12% decline in the Dow Jones Industrial Average. There was also the Great Recession, which happened in 2008. The stock market fell, and so did the housing prices, by a large amount. Although, these are all economic crises that happened in the U.S., while there are many that happened throughout the world. These include the Greece Crisis of 2009, Japan’s Lost Decade, the Mexican Peso Crisis of 1994, and more. We covered all of this in the economic crises presentations. Overall, recessions are very serious and can seriously affect one’s lives. Knowing about this horrible event in the past can hopefully prepare everyone in the future for when there is another recession.


Amadeo, Kimberly. “5 Warning Signs of a Recession.” The Balance, The Balance, 18 Jan. 2019, www.thebalance.com/what-is-a-recession-3306019.

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