Recession: An Analysis

Driving to work this morning, I did what I always do; which is to tune in to the Light & Easy radio station. Everything was exactly how I like it; from the songs, the events bulletin to the minimal advertising. However, a certain news piece instantly jolted me out of my sense of familiarity.

The news announcer stated that the situation on recession in the United States has escalated by 50 percent, meaning that the alarm has gone off and the American citizens are now in a state of panicked emergency. The announcer also added that the rate of unemployment at that end has lately been experiencing an enormous climb.

But what exactly qualifies as a full-blown recession? InvestorWords.com has classified the term as “a period of general economic decline, specifically a decline that lasts for two or more quarters”. Personally, I believe that a one-word, direct, concise and uncomplicated definition of recession is none other than depression.

There is minimal differentiation between both the above terms. The only distinction I could gather upon comparison is that recession takes on a rather impersonal approach; as demonstrated by the definition above by InvestorWords.com. Depression, however, penetrates miles deeper than the economy; it affects the people.

As we are well aware of, the dawn of recession means the retrenchment of countless employees across the globe. Organizations are left with no choice but to cut their losses by cutting the heads of numerous employees; usually those with the least experience. The young ones would be most affected in times like these.

Economic analysts have conducted various studies over the years and have concluded that the phenomenon rotates approximately every decade. The last one to hit our local shores was in year 1997. This only means that it is bound to rear its ugly head towards us again anytime in the near future. Are today’s youth prepared to face this unwelcomed turmoil? Some have said that they are. I, on the other hand, beg to differ.

Youngsters who wish to raise objections are welcome to provide feedback. Just remember, the older generation has been through this period of darkness before; you have not. Be well prepared.