The US economy has been on a good run in the last 100 months. Stocks have been consistently gaining and unemployment rates are at four percent. However, do not let this lie to you that the economy will continue in this trajectory.
According to expert predictions, despite the US economy doing well, the cyclical nature of the economy could lead to a recession. Economic experts say that despite the negative vibes about recessions, it is not necessarily a bad thing. It is just a natural cyclical process. It is just a way for the economy to readjust itself. Read more: US Money Reserve | BizJournals and US Money Reserve | Manta
The US Money Reserve in a video published said that recession is likely to occur when labor becomes scarce, thus forcing the wages to rise. This trend causes various businesses to stop hiring in a bid to limit the expenses incurred. The Federal Reserve, on the other hand, reacts by raising interest rates. Eventually, these events slow down the growth of the economy.
When the economy begins to slow down, many businesses cannot sell to as many people as they did before. This combined with high wages means that the profits will start to drop. A drop in profits affects the value of stocks negatively, and this ultimately affects Wall Street and the banks.
Since most banks have an interest in Wall Street, they cannot just sit and watch as the economy slows and investments lost. They, therefore, try to come up with policies that can mitigate the situation. Politicians also have an interest in delaying recessions.
Most politicians believe that if a recession occurs when they are in office, the people will blame them for not doing enough, and this could lead to political losses. The politicians feel that the voters may be upset because of the high unemployment levels and a slowing economy. As such, many politicians try to delay recessions as long as possible.
About the US money reserve
The US money reserve is an organization operating at a national level. Its operations involve the provision of government issued coins, including silver, platinum, and gold coins.
Its team of executives is dedicated to providing the highest levels of customer service. By enabling you to buy gold coins, the firm allows you to maintain or grow your wealth even during a recession.
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