Proper planning prevents poor performance is how the adage goes. When running a business it is important to look ahead and make the right preparations to prevent a disaster from …
Proper planning prevents poor performance is how the adage goes. When running a business it is important to look ahead and make the right preparations to prevent a disaster from occurring.
Talks of a recession have caused some to act swiftly, with major tech companies laying off thousands of employees.
Inflation, of course, has played a major role with Americans feeling the pinch at the grocery store, while our Town, County and Village governments have had to make budgetary adjustments as they search for supplies and equipment, now at much higher prices.
But now, through two full months of 2023, are recession conversations a legitimate fear or an overreaction?
According to an NBC News article at the end of January, economists have stated that for now, the U.S. isn’t in a recession. The article, aptly titled, “Are we in a recession? Is one coming?,” they state that, “the most recent gross domestic product report … showed the U.S. economy grew by 2.9% in the fourth quarter of 2022, following growth of 3.2% in the quarter before.”
So will one come?
NPR reported on a World Economic Forum poll in late January that, “found that nearly two-thirds of the respondents believe there will be a recession in 2023.” They added in the same article, however, that “many analysts expect a relatively mild and short recession, or what is sometimes referred to as recession with a small r.”
The government has taken steps to raise interest rates in the hopes of driving down prices and slowing economic growth. A slowdown in spending impacts the entire economy, and while we certainly understand the desire of businesses, many of which are practicing forward-thinking, to limit spending if they feel a major downturn is coming, there are certainly consequences for this course of action as well.
Being cautious is fine, but being paranoid is not. Until such a day when there is an immediate/major economic downturn, we should still invest in our local economy and keep the economic wheel turning.
Our main street and local businesses still need support. They feel the same pinch as every other business, if not tenfold, so we must continue to support them, or one day you’ll wake up and they will cease to exist.
For now the light appears to still be green, with a chance of yellow, so be alert, but don’t stop until it turns red.
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