Top 10 Items To Have In An Economic Recession – An economic recession is an economic condition in a country that is on a downward trend. The decline occurred by many things and can be seen from several aspects.
Several aspects of the decline can be seen in the declining Gross Domestic Product (GDP), the rising unemployment rate, and the declining real economic growth for two consecutive quarters.
Causes of the Economic Recession
There are many factors that cause a country’s economic recession, ranging from extraordinary events such as a pandemic that suddenly shakes the economy.
In addition, the amount of debt that is too large in a country borne by individuals and businesses can create an economic recession.
There is too much imbalance between continuous price increases for certain products, accompanied by falling prices for other products/services.
Rising prices make purchasing power weak, while uncontrollable price declines make individuals and businesses stop spending that can weaken the economy.
The World Bank noted that a recession will occur in 2023 due to the situation of central banks around the world simultaneously raising interest rates in response to inflation.
Inflation is an increase in the price of goods and services in general and occurs continuously over a certain period of time.
While the deviation is a decrease in the prices of goods and services in general that occurs continuously.
Impact of the Economic Recession
Impact on the Government
The impact of the economic recession on the country as a result of tax and non-tax payments is lower than usual. This is because of the declining income of the people. Even people become lazy to pay taxes.
When the unemployment rate rises, the state must participate in helping each individual. And it could be that the state owed foreign banks to provide subsidies or jobs.
In addition, ongoing government projects such as development and community welfare programs must continue. This burdens the government even more.
Impact for the Company
For companies, a decline in revenue is almost certain to happen. At least there is work stress when employees are required to work harder so that there is no decrease in company income.
The worst impact is that the company went bankrupt due to the drastic decline in people’s purchasing power. The company’s last resort will be to wage a price war that threatens the profit value of the product/service.
Impact on Workers
In companies that make efforts to survive the recession will have an impact on employees. Such as saving on company spending, decreasing salaries, closing business lines that are not developing, to layoffs.
Because employees always depend on the economic conditions of the company where they work. Companies also depend on people’s purchasing power. All are like interdependence, which are equally weakened.
Top 10 items to have in an economic recession
1. Mental & science
Preparing mentally means strengthening the spirit to keep trying to work as much as possible. Then along with the preparation of science, in which the science of economics makes us know the terrain we are facing.
2. Savings
Savings preparations should have been running before the economic recession occurred. For this reason, it is important to save every time you get a net profit, about 20% is income that must go into savings.
3. Asset
Similar to savings, assets are a form of object from a savings. Knowledge and experience can also mean intangible assets. Expand to collect assets such as gold and education.
4. Small Business
Opening a business during a recession is a bad idea. But it would be appropriate if the business you run is a business about primary needs. For example, buying and selling food ingredients to selling science classes.
5. Passive Income
You can build passive income through online efforts such as becoming a youtuber, blogger, and opening a friend’s service. Start from small things such as providing knowledge through the media website.
6. Supply Network
Knowing information related to supplier networks makes your daily shopping even more efficient for your company, so you no longer need to incur additional costs to survey cheap products in your area.
7. Business Cooperation
Doing business cooperation is a smart idea for today’s business patterns. Which nowadays people no longer compete but support each other in the same business or in different businesses, such as recommending each other a place of business.
8. Farming Animals
Livestock is something that people rarely think about, but it can be a surefire way during an economic recession. We can raise goats, chickens, buffalo, and animals that can eat grass.
9. Fruit Farming
As with livestock, farming is the luckiest person today. They can eat the produce without having to buy and even sell it. Try farming in your yard with fruit plants, such as bananas or papayas.
10. Work
It is undeniable that even when there is no recession, people need jobs. You can keep your current job or open up a potential new job through online networks, such as remote work or an online business. Maximize your portfolio for this.
Thus the top 10 items to have in an economic recession. Stay calm and tough in the face of any economic situation.
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