A decade after the global recession, the world’s economy is vulnerable again. Ryan Avent, our economics columnist, considers how the next recession might happen—and what governments can do about it Click here to subscribe to The Economist on YouTube: Daily Watch: mind-stretching short films throughout the working week. For more from Economist Films visit: Check out The Economist’s full video catalogue: Like The Economist on Facebook: Follow The Economist on Twitter: Follow us on Instagram: Follow us on Medium: ...(read more)
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The next global recession is not a matter of if, but rather a matter of when. Many financial experts predict that we are overdue for another economic downturn, and it is important to be prepared for this eventuality. In order to prepare for the next global recession, there are several steps that individuals and businesses can take. 1. Reduce debt One of the main factors that contributes to the severity of a recession is the amount of debt that individuals and businesses carry. When times are good, it can be easy to accumulate debt, but when the economy turns, this debt can quickly become a burden. To prepare for the next recession, individuals should work to reduce their debt load as much as possible. This can involve paying down credit card balances, student loans, and car loans, and avoiding taking on any unnecessary new debt. Similarly, businesses should work to pay down any outstanding loans or lines of credit, and avoid taking on new debt unless it is absolutely necessary. 2. Build up savings Another key factor in weathering a recession is having enough savings to fall back on. In the event of a job loss or other financial emergency, having a solid emergency fund can help individuals and businesses get through tough times without having to resort to extreme measures. Ideally, individuals should aim to have at least six months’ worth of living expenses saved up in an emergency fund, while businesses should aim for even more. 3. Diversify investments During a recession, certain industries and sectors may perform better than others. By diversifying investments across a range of industries and sectors, individuals and businesses can help protect themselves against the worst effects of an economic downturn. For individuals, this may involve investing in a variety of stocks, bonds, and other assets, rather than focusing on just one area. For businesses, diversification may involve expanding into new markets or industries, or investing in new products or services. 4. Develop a contingency plan Having a contingency plan in place can be invaluable during a recession. This can help individuals and businesses stay ahead of the curve, and make necessary adjustments before things get too dire. For individuals, a contingency plan may involve identifying ways to cut back on expenses or increase income in the event of a job loss or other financial setback. For businesses, a contingency plan may involve identifying ways to reduce costs, such as laying off employees or cutting back on non-essential services. By taking these steps, individuals and businesses can help prepare themselves for the next global recession. While it is impossible to predict exactly when this downturn will occur, being proactive and taking steps to protect your financial interests can help make the difference between weathering the storm and being swept away by it. https://inflationprotection.org/preparing-for-the-next-global-recession-a-guide/?feed_id=82496&_unique_id=64241394b1920 #Inflation #Retirement #GoldIRA #Wealth #Investing #2018marketcrash #business #collapseofeconomy #economiccollapse #economiccollapse2018 #economist #EconomistFilms #EconomistVideos #Finance #financialcollpase #financialcrisis #financialeducation #financialstocks #globaleconomiccollapse2018 #GlobalRecession #GreatRecession #imminenteconomiccollapse #marketcrash2018 #news #politics #recession #shortdocumentary #stockmarket #stockmarketcrash #stockmarketcrash2018 #stockmarketcrashcoming #TheEconomist #RecessionNews #2018marketcrash #business #collapseofeconomy #economiccollapse #economiccollapse2018 #economist #EconomistFilms #EconomistVideos #Finance #financialcollpase #financialcrisis #financialeducation #financialstocks #globaleconomiccollapse2018 #GlobalRecession #GreatRecession #imminenteconomiccollapse #marketcrash2018 #news #politics #recession #shortdocumentary #stockmarket #stockmarketcrash #stockmarketcrash2018 #stockmarketcrashcoming #TheEconomist
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