Moral Down, Prices Up

A Halt in the American Economy Gives Our Wallets a Warning

  The last great recession to hit America occurred in December of 2007, and lasted until June of 2009, hitting many families close to home. The most current recession occurred in 2020 when the Corona Virus caused mass shutdowns. With an inflation rate of 8%, and an unemployment rate of 36% in March despite the nearly half a million jobs added prior, many are seeing almost an 80% chance of another recession in the U.S to occur.

  The former Treasury Secretary, Lawrence Summers, sees that the current economic conditions are very similar to previous pre-recession periods in U.S history. With a boom in commodity prices, interest rates rising, and the current Ukrainian war’s effect on the world’s economic growth, the curve is coming to a yield.

  Now what exactly does this recession mean? This means that it is predicted there will be a large decline in economic activity, and can easily spread across the country lasting for months or even years.

   Despite the statistics, some U.S economists aren’t too concerned that a recession will actually occur. Wages have gone up, and since COVID-19, the U.S economy seems to be in its pre-pandemic state. The reason many believe a recession can likely occur is the rising prices that are continuing to climb. Many Americans can easily pull back on spending, leading to a problem for businesses not only in commerce, but in hiring workers.

Although it may be too early to fully prepare for a recession, Americans can take steps to improve and better their financial situation. Boosting retirement and emergency savings, and trimming down budgets can be beneficial to American families in the long run with the current economic situation.

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