Accrington Web - View Single Post - Recession

WillowTheWhisp · 22-10-2008, 12:08

Am I being cynical here but I can't help feeling that all this recession business is a bit of a self fulfilling prophecy.

If the word 'RECESSION' is spoken loudly enough people start to panic. Nobody spends money because they are afraid of debt. So far sounds good but then demand falls so supply falls so productivity falls so jobs are lost so people are short of money so they spend less so demand falls more so supply is reduced even further and production falls yet again which leads to more job losses .................. etc.

How do we get out of the spiral?

22-10-2008, 12:08	#1
WillowTheWhisp Resident Waffler Join Date: Jun 2004 Location: Accrington, Hyndburn Posts: 18,142 Blog Entries: 14 Liked: 14 times Rep Power: 1062	Recession - self fulfilling prophecy? Am I being cynical here but I can't help feeling that all this recession business is a bit of a self fulfilling prophecy. If the word 'RECESSION' is spoken loudly enough people start to panic. Nobody spends money because they are afraid of debt. So far sounds good but then demand falls so supply falls so productivity falls so jobs are lost so people are short of money so they spend less so demand falls more so supply is reduced even further and production falls yet again which leads to more job losses .................. etc. How do we get out of the spiral? __________________