RECESSION

Another problem in this world people face is RECESSION, which is defined as
"A period of general economic decline; typically defined as a decline in GDP for two or more consecutive quarters. A recession is typically accompanied by a drop in the stock market, an increase in unemployment, and a decline in the housing market. A recession is generally considered less severe than a depression, and if a recession continues long enough it is often then classified as a depression. There is no one obvious cause of a recession, although overall blame generally falls on the federal leadership, often either the President himself, the head of the Federal Reserve, or the entire administration."
OR
"Recession is definitely bad for economic growth and development. It slows down the economy. Investors hesitate to invest, and producers are unable to churn out products. Consumer lack the necessary money due to unemployment and cannot therefore buy goods available in the market."

 I think the impact us and our economy seriously becaues of following reasons:

Recession impact on the economy

Slump in the market – Goods and services are difficult to be sold as the purchasing power of the people comes down.

Stock prices come down – Investment suffers. The industrial production is badly affected as investors avoid investing in companies that might suffer losses during recession. Bigger companies are able to withstand the setbacks but smaller companies have a tough time and some may end up closing down.


Increase in unemployment – People are thrown out of jobs. They are left in the lurch. They are unable to meet both ends. Many goods and services are not within their reach.


Depression – Recession causes depression if it persists for a long time. Negative trends are visible in the stock market and rapid unemployment is there. Companies need to be bailed out by the government. Public spending suffers a set back.


National debts on the rise – Increase in national debts means less money can be spent by the government on development. Money gets diverted in bailing out companies. The recent recession in the U.S. indicates how banks have to depend upon federal aid for their survival. Taxpayers money is being spent in giving these banks a boost.
NOW I WANT YOUR ALL READERS OPNION ON RECESSION.