The Economic Recession was not started in 2022. Recession is just a recursion implemented in macro economic context. Where is the starting point?
Find the Fibonacci sequence too abstract?
– some event changes the environment (war, disease, …)
– people spend less on something
– there is less need of producing it so People are laid off.
– the chained and related businesses suffer.
– these people & businesses trim down and spend less on other stuff.
– people focus on basic Life needs and sometimes – is kept in reserves, because, who knows?
– less exports/imports, less international trade.
– this rotates economically to the first place and increases lay offs and decreases total spending.
Those that do not learn from history are doomed to repeat it.
Regions of Bulgaria where some industries were build during the Soviet Era are decaying nowadays. Only some agriculture activity remains, but it is economically suppressing to be there – because of the Big Cities salaries and opportunities.
I’ve been told about closing VW factory in Spain. The workers received their lay off packages and, as they do not have job now, started to live with less. The restaurant businesses didn’t get anything from the closing factory and had a hard time.
During the 2020-2021 pandemic – night bars and restaurant were restricted. Some of them got compensation packages. But what about the taxi drivers? They live around such businesses and events. I have a friend in the neighborhood that said – I need to wait for 1 hour – to get a call for a drive of a client. It gets economically even harmful to work such a job.
And that goes as deep as the event is. Maybe the next marketing slogan should be – go to the farm and “Grow your own food“, “Plant trees” or learn to be self-sufficient – instead of – “Stay Home” 🙂