The Benefits of a Recession

Did you know that there are benefits to a recession? Yes there are and by knowing what they are, you can take advantage of them.

First of all, when the economy is in recession, the government often tries to stimulate the economy by instructing the IRS to send you a check. Why does the government do that? This is the government’s idea of a way to help the economy.

Because of a recession, the majority of the bonds and stocks are undervalued. This means you can buy them at reasonable prices. Just make sure you do some research first because you only want to buy those that have a good return when the economy recovers. You should also look into buying some real estate property since their value is also low.

Aside from the Internal Revenue Service, the Federal Reserve also does its share to help the economy by slashing interest rates. This means you can borrow money at a lower rate as long as you have good credit ratings. Sadly, what we have witnessed is that mostly only the banks have been benefiting here. They’re getting almost zero interest loans from the FED which in turn rewards them for not extending loans to consumers by paying them interest on the money they keep in reserve.

The environment also gets some benefit from a recession. How? By making people make reductions in their expenses. For instance, car owners will trade their SUV’s for smaller vehicles and people are less likely to travel for vacation. As a result, it will reduce the amount of carbon gases that are released into the atmosphere.

This also helps boost online businesses since people will tend to order items online instead of driving over to the mall to make the purchases.

For those who want a career boost, this is a good time to go back to school since no one is hiring. Take a course that will enable you to switch to a better career or get an MBA. Although the mainstream media says the recession is over, the reality is the current recession is not expected to go away soon, so weigh your educational options.

So there you have it, there are benefits to a recession but most of us don’t see it because of how the media depicts it as a very bad thing. Now that you know that it is not entirely true, you just have to make the most of it until things do improve.

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