Where to find the opportunities in a recession - Deepstash

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Where to find the opportunities in a recession

Now is a good time to fix parts of the economy we don't like as part of the recovery.

  • The recession might give opportunity to take meaningful action on climate change. Germany set aside one-third of its recovery plan for green investments.
  • Greening the economy will increase jobs. Redesigning city centres are very labour intensive and will employ lots of people who can learn skills.
  • One of the things the pandemic has done is exposed the inequality that exists. Recovery creates an opportunity to address inequalities. For example, New Zealand is making progress in not assuming that economic growth means everyone gets wealthier. They say it should be measured based on human wellbeing and welfare.

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MORE IDEAS FROM THE SAME ARTICLE

  • Banks are better able to handle a financial crisis than a decade ago. The 2008 recession was about the housing market and shares, which affected higher income groups.
  • The present crisis seems to be hitting the lower-income groups, the vulnerable workers, young, and less skilled. It...

  • A recession is "good" or "bad," depending on who it impacts and how badly it affects them.
  • In the last thirty years, a recession has come and gone somewhere in the world every few years.
  • Globally, economies are in recession 10-12% of the time.
  • ...

Demand shocks occur when the demand for products drops as people stop earning money. A tactic to fix this is to stimulate the economy. In 2008, Australia gave households cash and encouraged them to spend to jumpstart the economy.

In 2020, the problem is also a lac...

  • A drop in GDP was expected during the 2020 lockdown. Shops and businesses were closed, and the total value produced by goods and services decreased. In turn, this affected the staff of those businesses earning less money.
  • Furloughs. At its peak, ...

Supply shocks occur when people still have money to spend but cannot do so because shops are closed, or prices have shot up.

The 2020 crisis is a mix of supply and demand shocks, brought on by furloughing and temporarily preventing work in specific sectors. This makes it ...

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