What would the recession mean for everyday people like me?

Question

i am 21 years old and live with my boyfriend who is 25. we have a combined income of around £40000. Although this is quite alot we still seem to struggle for money and have to cut most of the luxuries in life out. Ive heard on the news about a recession but how would this affect our everyday life?

Thanks

Answer 1

It will cost your more for twinkies

Answer 2

high food and oil prices

Answer 3

Recession means that income does not grow at the same pace as inflation such that your ability to meet your basic needs diminishes or recedes over time.

Thus food prices, fuel prices, and other necessaries cost more and you get less bang for your "buck" or in your case, your pound feels lighter by a few pennyweights.

In order to combat recession, you need to either significantly increase income, or reduce necessaries.

In the long term, recession also causes the economy to shrink because less money is available in circulation (that is the streets) and so there is less disposable income available for people to spend on non-necessary things such as entertainment, holidays, and other littel frivolities.

The cure is typically economic growth which hopefully will outpace inflation.

This is not happening worldwide so the economies are all receding.

My theory is that if energy prices ease enough, then the economies can grow. With energy prices being high, then the cost of everything produced with energy including food, heating fuel, electricity, and so forth will be high and thus you have less disposable income. Less disposable income equates to recession.

Answer 4

At the moment it is higher prices for food at the checkout. High cost on petrol at the pump. Loans are more difficult to get as banks and companies become less trusting. Although banks are looking for capital at the moment so saving accounts are offering a great rate (always a good indicator of recession).

Answer 5

I would be in the same boat.  That boat is a sinking boat.  try not to think about it.  If it goes from recession to depression board the windows and doors

Answer 6

Depends on your job- there are still buoyant sectors- you could drive a shell tanker for example! If you working in a failing market you could face redundancy.

Answer 7

It means that pretty much everything you buy is going to go up in price and unfortunately your income won't go up enough to cover the increase in your spending so you'll have to make a few choices as to what or how much you buy.