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Economic Recessions in America

by kodi James Wednesday, Apr. 20, 2011 at 7:36 PM

The US economy, and for that matter the global economy, is a living, breathing thing. With that analogy in mind, we find that the comparison is closer than most of us would normally think.

The US economy, and for that matter the global economy, is a living, breathing thing. With that analogy in mind, we find that the comparison is closer than most of us would normally think. Our breathing pattern is, historically, almost identical to the economic pattern.

Let's take a quick look at the breathing process in the human respiratory system. First, we breathe in and our lungs inflate. Next, we breathe out, or exhale and our lungs deflate. This process is so normal, that we don't even have to think about it. We go about our daily life and let it take care of itself.

At regular intervals, a new part of the process is involved. We enter a period which calls for us to rest. We need to get some sleep. A clear signal that this is imminent is an unusually deep breath that we're compelled to hold while we stretch. Then there is a sudden, deep cleansing exhalation and we're going to sleep. We've just yawned.

During this cycle of our lives, while our blood pressure is dropping, our respiration decreases, the oxygen to our brain is not as richly supplied and we drift off to sleep. Our respiration becomes shallow and infrequent. We're sleeping to recuperate from the activity of the day. This pattern holds until we have regained sufficient strength to face another flurry of activity.

While our typical breathing cycles happen in a matter of 24 hours, the economy takes a bit longer. It repeats over a period of years, rather than hours. The pattern of normal ebb and flow of the economy is only noticed by the experts whose livelihood is tied to those irresistible cycles.

When the majority of us notice the condition of the economy is during its sleep cycle. As with all living things, sometimes the economy has worked harder than normal and has had a hard day. During those times, the sleep comes suddenly and deeply. And sometimes, "it sleeps like a log" from near exhaustion.

Those periods of economic deep sleep are called "recessions" which are defined as "periods of reduced economic activity". In the illustrious 233 year history of the United States, there have been 22 identifiable periods of recession. They range from mild to full blown panic. Notably, since the Great Depression of the 1930's and 1940's, these periods of reduced economic activity are increasing in frequency and severity. It's becoming disquieting to anticipate the next economic recession in America, even for the lay person.

The current recession is of such a stature that it is arguably the worst economic downturn since the great depression of October, 1929. We are in for a long, deep sleep this time. The economy has had a rough day.
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So what can be done, in the midst of the current economic crisis, to recession-proof our career and our income? The short answer is: learn where the reduced amount of money is still being spent. Then it is mandatory to find a product, service or concept that has value to everyone. It must be so compelling that even in the worst of times; forward thinking people will want to make a purchase of your offering.

Where do such products, services and concepts exist? Well, where are people still shopping? Where is the real traffic when fuel prices force the vast majority of us to remain home when we're not away from home earning a living? It's on the internet.

Internet commerce, or e-commerce, is a way of life now. Please note that the statement wasn't that it will become a way of life; it already is part of 70% of our households and growing.
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