Read the assigned Forbes article and summarize in at least 100 words.
A recession for America is more likely to occur than to not occur. Businesses might want to the recession to hit sooner than later, but the article makes a good point that this is the perfect time to start preparing for that drastic downturn to hit and have a game plan ready to use. Lowering inflation seems to be the most crucial component for the Federal Reserve at the moment. The Fed seems to be tightening monetary elements in hopes of leveling out the economy. There were two sides discussed about the recession which were the debate for a short time lag or a long time lag. A short time lag would trigger a recession quicker. A long time lag would impact labor and how many people or unemployed. With the data provided, a recession towards the end of 2023 or start of 2024 looks to be more accurate than early 2023. A contingency plan is elaborated for readers at the end.
Reflect on what we learned in the course, find at least one chapter in the textbook where we discuss the related topic, and explain how the chapter(s) is related to the reported event in the article. Do this in at least 100 words.
Towards the end of the article, a plan for how to prepare for a recession is illustrated for readers to understand some main concepts for a recession. Chapter 5 in our textbook plans for a downturn and discusses how to manage through the business cycle. During a recession, specific goods have a higher demand in a recession than in a boom. Layoffs are expected more during a recession than a boom because workers are not needed as much if the economy is responding negatively in sales. Contingency plans are to help a business navigate through a recession and how to grow the business after the recession as well. Flexibility allows a company to have equity or long-term debt. Once a business understands the specific vulnerability that impacts the company, they can begin to work around issues with a game plan.