What Is A Recession?
Posted by Stephen Cline on November 8th, 2008With all the talk about the world economies entering into a recession, I thought now would be the perfect time to spend a bit of time on the question ‘What is a recession?‘
A recession is when we see a decrease in a nations GDP (Gross Domestic Product) of 10% over a period of more than one quarter.
A few of the things that cause a recession are:
- Large drop in prices
- People spending less money
- Increased Government spending
- Loss of jobs
The last recession was in the early 2000’s with the DotCom crash where we saw a massive drop in DotCom spending. Sometimes it only takes one industry to dall to send the world into a recession. When the DotCom market crashed it caused the GDP to significantly decrease and production was decreased. This caused a lot of people to lose their jobs.
Sometimes a recession is judged by the countries current unemployment rate. Now we can answer ‘What Is A Recession ‘ check out ‘The Top 10 Recession Proof Jobs‘ to see if your job is safe.