Read the assigned Forbes article and summarize in at least 100 words.
The author Bill Conerly believes a recession is on the way and he makes a couple key points regarding this. For one, the federal reserve has started tightening monetary elements which is something that governments do in order to delay an inevitable recession. We are not currently in a recession according to the data so this tightening of monetary conditions makes sense. He talks about either a short or long lag time before a recession. The short lag time would lead to a harder recession occurring sooner than a long lag time. A long lag time would affect jobs and other aspects of the economy, but the recession would hit less hard. We can expect a recession in early 2024 or late 2023 from all the data provided.
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.
The author Bill Conely offers companies advice on how to prepare for a recession near the end of the article which draws direct ties to our textbook’s chapters about how to manage through a business cycle and how to deal with a recession. He speaks a lot about this contingency plan which is something that we spent extensive time covering throughout the semester. He mentions staff cuts, reductions in capital spending, and tightening credit terms among other flexibility planning. These are all examples of action a business can take during a recession that we learned about, and Bill Conely reiterates these points in his article.