The word recession stirs up a lot of emotions and thoughts in people when they hear that word. For majority of people it tends to be a negative sounding word, for other people it is a positive sounding word. If you look at a recession in turns of productivity you start to see that a system that failed had parts in it that didn’t work. In order to return to status quo those parts need to be removed or repaired in order for the system, as a whole, to work properly again. It can be difficult for someone to understand how the recession affected them when they live in a way that makes them recession proof which is not an easy thing to do but it gives them a false understanding what of what recession is doing to the economy, businesses, and people.
The New York Times created 255 charts that break down the impact of what the recession did to the economy and explains what industries were affected, both positive and negative. These charts are important to study because it teaches you what industries are most fragile to recessions and what industries withstand harsh conditions. For the millions of people who lost their homes because of Mortgage companies playing with people’s livelihoods it is very evident how a recession hurts people, but what about those that view a recession as a positive?
Recessions can almost be viewed as a way of starting over so that means most markets drop to their low point, acting as a reset button, allowing everyone to start over again. This can be hard if money is hard to come by but for those that have plenty of money, the recession is a positive because it allows them to buy into more industries with a safe bet that over the next couple of years they will earn back more than they put in. During the low point of the recession I used an online trading stock market game to find out how my return, if I had money to invest, would look in the future. I looked at industries that are key to follow in a recession and bought stock with their companies. The value today is well over double what I had put in making me, in practice, a very rich person. Was there any secret to what I did? No, it was all the same stuff they teach you in your first years of economics. Kind of makes you wonder why not all economic professors are rich then, right?
The Proof is in the Pudding
These charts will show what most people experienced during the recession in industries that people are familiar with. If you worked in the housing industry when the recession happened and you follow the charts created then you will see the patterns and trends that led to the recession and the ones that followed out of it. The same goes for any other part. You will notice some industries that came out better because of the recession, and instead of getting mad about why they benefited, you should pay more attention to what was it about their industry that protected them from the harsh realities of a recession. You will learn more by studying these charts than complaining, so when the next recession happens, and it will, you will be prepared for it.
For anyone looking to study economics and the true impact that a recession can have on an economy this is a good place to start with these interactive charts.