Economic depression and economic recession, what should we do?
Note: This article is automatically translated by the GPT4.0 model.
Here we got the video below if you don't want to read.
All-in-one Video Storytelling
Economic depression and economic recession are two different stages of economic downturn, and their main differences lie in their duration and severity.
Severity: An economic recession usually refers to a short-term (typically two consecutive quarters) decline in economic activity. This decline may lead to an increase in unemployment, a decrease in productivity, and a reduction in income. In contrast, an economic depression is a more severe form of economic recession, with more profound and lasting impacts. During an economic depression, unemployment may rise significantly, and productivity and income may drop dramatically.
Duration: Economic recessions usually last for several months, while economic depressions typically last for several years or even longer. For example, the "Great Depression" began in 1929 and lasted until 1939, a total of 10 years.
Impact: The impact of an economic recession is usually short-term, and economic activity may return to normal after a period. However, the effects of an economic depression may last for a long time and may even change the entire economic structure.
Frequency: Economic recessions are part of the economic cycle and are relatively common. However, economic depressions are relatively rare. In modern economic history, there has only been one event widely considered an economic depression, namely the aforementioned "Great Depression".
Economic depression is more severe and longer-lasting than economic recession. However, whether it's a depression or a recession, policymakers and investors need to adopt appropriate strategies to cope.
An economic depression is an extreme downturn in economic activity, usually lasting several years or even decades. However, there is no clear time scale or threshold for the deterioration from recession to depression. Economists do not have a strict definition of depression, and there is no consensus on specific levels of unemployment or GDP growth rate.
The causes of economic depression are usually multifaceted, including a decline in consumer confidence and demand, and companies laying off workers to cut costs.
Align to the left
Align in the middle
Resize to full width
Align to the right
Add a link to the embedded imageAdd alt text
During an economic depression, the stock market usually suffers significant impacts. Investors may rush to sell stocks of bankrupt companies, leading to a continuous decline in stock prices. However, some companies that provide essential goods and services, such as food companies, energy and utility companies, manufacturers, and retailers, may perform relatively well during a depression.
To prepare for a potential economic depression or recession, investors need to be fully prepared. This includes protecting existing investments and assets through risk management measures, not making blind investments (such as buying real estate, cars, and other heavy assets with leverage), thinking twice before starting a business, not quitting a stable job lightly; holding gold (physical) and cash; In addition, investors can diversify investment strategies to spread risk, such as diversifying investments among different industries, assets, or countries, or using a variety of investment tools, such as short selling and long buying in multiple markets for risk hedging, rather than sitting idly by.
Although the possibility of an economic depression is extremely low, there is a saying that some regions may experience severe economic recession in 2023. Although the United States and Switzerland immediately blocked the possibility of financial institutions going bankrupt, the subsequent chain reaction is not immediately salvageable. Under the influence of the current high interest rates of the Federal Reserve, the volatility of the market has increased unprecedentedly. Some countries and regions can only resist the crisis by reinvesting in infrastructure and expanding the real estate market.
In general, the general public also needs to understand the difference between economic depression and economic recession, and how to prepare for a possible, impending, or already occurring economic downturn, because the next person affected might be you. By being fully prepared and taking appropriate risk management measures, you can better cope with economic uncertainty and protect your assets.
If you ask me personally, I am optimistic about the future and particularly interested in the field of artificial intelligence.
I hope everyone around me can learn the skills to resist risks.
For domestic and foreign brand building, promotion of video accounts and other social media accounts for individuals and teams, please contact me.
The greatest news is, for now, 5 years already since we founded the DeltaBlue, now DeltaBlue technology is still here and we have got our own 2 livecast- rooms currently and got around 20 people here. Still got our main and biggest client which is Unilever( China).
Introducing YeQi Japanese Cake Store, created by us: Tansoon Creative Design
Very proud to get this Japanese cake store case finished. The CEO appreciated for our contribution.
Now it is opening at the shopping mall.
Good news is, 12% off before 31 July 2020, go there and buy some!! Haha..
;)
BTW, this brand ranked No.1 in the industry in SUzhou city!! #TansoonCreativeDesign #TansoonDesign#InteriorDesign#CreatedByTansoonDesign
Opps! I suddenly found these pics on the phone! Now feel bad cuz i forgot to post friend's birthday pics which i should post during the past weekend and for now, it's few days after the event..... :++((
vaporwave
dededos
snowghoul
tangentwithtanner
andulkaphoto
kaledo-art
dailybridgerton
ellievsbear