CAN WE STILL TALK ABOUT RECESSION OR IS IT OVER?
It is crucial that we first explain what recession is before we venture into whether there’s still recession or it’s over already. According to Wikipedia, a recession is defined in economics as “a business cycle contraction when there is a general decline in economic activity.” Recession often leads to losses of jobs, hence, reducing income in the country. With a reduced income comes reduced spending, reduced tax payments, and so on. Therefore, when a recession struck, there’s usually a reduction in money circulation, and the country’s economic activities will be badly affected. The world’s economy just received a big punch from the unexpected global pandemic, and it is yet to be healed of it. Businesses and economic activities across the world were closed to curtail the pandemic. Thus, government revenue was reduced, yet, government spending increased to find suitable medication and vaccines to cure and control the virus. At a time like this, should we be looking at a new recession, or we shouldn’t be bothered about it?
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THE POWER IS NOW MAGAZINE | DECEMBER 2020
