What happen in recession, in real life? Not what the media say but to normal every day people.?

Question

If all can not afford to buy and nothing to sell, can or will the goverment help and how.?

Answer 1

Your company will be forced to keep your salary down, as it needs to pare its costs to the bone to survive. Worse, it might go out of business and you'll lose your job. You'll find it hard to get another one, because a lot of people will be in the same position and firms will be contracting, not expanding.

With lots of people out of work or being low paid, there won't be much money spent in shops. So more and more of them will go out of business. The first to go will be luxury services, like manicurists; essential services like supermarkets will survive, since people have to buy food come what may.

People won't be able to pay their mortgages, so a lot of houses will be sold. This will drive down the price. Many people will find themselves in negative equity, and so will be unable to sell.

Rents will fall, both commercial and domestic.

If you do have money, you'll find it hard to buy what you want, because retailers and wholesalers will run their stocks down to the minimum. There may be long lead times on less popular items.

There will be a large increase in crime, particularly theft of valuable items, street crime and shoplifting. If things get really bad there may be inner-city rioting and looting.

The government's tax take will fall, due to lower PAYE, NI and VAT etc, so it will have less money to spend on benefits even though there are more claimants. Expect a benefits squeeze and a clampdown on benefits cheats. The government may be forced to borrow imprudently.

On the brighter side, the entertainment business will boom. People need escapism! Drug dealers should also do well. It will also be an opportunity for professional landlords to buy property cheaply, hoping for a profit when the recession ends.

Have fun!

Answer 2

Buy and sell what.

Recession means fewer jobs, therefore people will be more careful with money and spend less.

Credit will be harder to obtain therefore people will spend less.

When people are spending less, especially on luxury goods, prices of these goods fall as sellers try to get people to buy.

Answer 3

People will save more, because money is not as available as it was before. This is due to a number of factors:

More people are made redundant from jobs because employers cannot afford to pay as much as before in the tough economic situation. Also, due to rising prices, money is not as readily available to people.

Answer 4

A trick governments use world wide is to do massive construction projects like dams, roads, bridges, tunnels, thus creating jobs, the people with these jobs have money to spend on goods which makes a profit for people selling those goods.  Hence recession ends, but if I recall correct the media said "we are poised on the brink of a recession" we have yet to tip over the edge.

Okay that does not answer the question the way you asked it but hey that my style and I hope it helps, all the best