Read the assigned Forbes article and summarize in at least 100 words.
In the article, The Recession Will begin Later 2023 Or Early 2024, Conerly shared the likely-hood that the US will be going into recession and the causes of downturns. It is believed that a recession is in Americas future, and it is important to prepare now. The Forbes article stated that there is a distributed lag time of about one year between monetary policy changes and real economic changes. With that being said, keeping track of monetary policies and inflation levels are important in determining if a recession is around the corner. Before monetary policy triggers a recession, there is expected to be a long time lag because of the excess demand for labor compared to the amount of unemployment. Building a contingency plan is the first step businesses should take to prepare for a downturn. A contingency plan includes the steps that should be taken, such as, reducing capital spending, tightening credit terms, and more. Being prepared for a downturn can also be an opportunity for growth. There are many benefits to being prepared for a downturn.
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.
Chapter 7, Managing Through The Business Cycle shared that managers need to have a series of steps he/she can take to cut costs to survive recessions and how to spot opportunities to take advantage of recessions. At the end of the article, Conerly shared that the best first step for a business to prepare for a recession is contingency planning. Chapter 7 taught us easy steps, moderate steps, and survivals steps to deal with recessions. All of these steps shared in chapter 7 should be included in a business’s contingency plan. Conerly also shared how contingency planning should also include opportunities for growth. Chapter 7 taught us how to take advantage of your competitors during a recession by gaining their talented workers and acquire former customers who left the market. Chapter 7 also shared the importance of identifying opportunities; during a recession, it can be easy to find talented, experienced employees for cheap. The Forbes article and chapter 7 both share how to successfully deal with recessions including the importance of managers preparing and managing before and after recessions as well as being flexible as a business and taking a series of steps to cut costs and spot opportunities to take advantage of recessions.