Dating in bad economy

The economic crisis came home to year-old Megan Petrus early last year when her boyfriend of eight months, a derivatives trader for a major bank, proved to be more concerned about helping a laid-off colleague than comforting Ms. Petrus after her father had a heart attack. For Christine Cameron, the recession became real when the financial analyst she had been dating for about a year would get drunk and disappear while they were out together, then accuse her the next day of being the one who had absconded. Dawn Spinner Davis, 26, a beauty writer, said the downward-trending graphs began to make sense when the man she married on Nov. Davis said.

Are 'swipe left' dating apps bad for our mental health?

In economics, a recession is a business cycle contraction when there is a general decline in economic activity. In the United Kingdom, it is defined as a negative economic growth for two consecutive quarters. Recessions generally occur when there is a widespread drop in spending an adverse demand shock. This may be triggered by various events, such as a financial crisis , an external trade shock, an adverse supply shock or the bursting of an economic bubble.

Governments usually respond to recessions by adopting expansionary macroeconomic policies , such as increasing money supply , increasing government spending and decreasing taxation. Some economists prefer a definition of a 1. The NBER, a private economic research organization, defines an economic recession as: In the United Kingdom , recessions are generally defined as two consecutive quarters of negative economic growth, as measured by the seasonal adjusted quarter-on-quarter figures for real GDP , [3] [4] with the same definition being used for all other member states of the European Union.

A recession has many attributes that can occur simultaneously and includes declines in component measures of economic activity GDP such as consumption, investment , government spending, and net export activity. These summary measures reflect underlying drivers such as employment levels and skills, household savings rates, corporate investment decisions, interest rates, demographics, and government policies.

Economist Richard C. Koo wrote that under ideal conditions, a country's economy should have the household sector as net savers and the corporate sector as net borrowers, with the government budget nearly balanced and net exports near zero. Policy responses are often designed to drive the economy back towards this ideal state of balance. The type and shape of recessions are distinctive. In the US, v-shaped, or short-and-sharp contractions followed by rapid and sustained recovery, occurred in and —91; U-shaped prolonged slump in —75, and W-shaped, or double-dip recessions in and — Recessions have psychological and confidence aspects.

For example, if companies expect economic activity to slow, they may reduce employment levels and save money rather than invest. Such expectations can create a self-reinforcing downward cycle, bringing about or worsening a recession. Economist Robert J. Shiller wrote that the term " When animal spirits are on ebb, consumers do not want to spend and businesses do not want to make capital expenditures or hire people.

High levels of indebtedness or the bursting of a real estate or financial asset price bubble can cause what is called a "balance sheet recession. The term balance sheet derives from an accounting identity that holds that assets must always equal the sum of liabilities plus equity. If asset prices fall below the value of the debt incurred to purchase them, then the equity must be negative, meaning the consumer or corporation is insolvent.

Economist Paul Krugman wrote in that "the best working hypothesis seems to be that the financial crisis was only one manifestation of a broader problem of excessive debt—that it was a so-called "balance sheet recession. For example, economist Richard Koo wrote that Japan's "Great Recession" that began in was a "balance sheet recession. Despite zero interest rates and expansion of the money supply to encourage borrowing, Japanese corporations in aggregate opted to pay down their debts from their own business earnings rather than borrow to invest as firms typically do.

Japanese firms overall became net savers after , as opposed to borrowers. Koo argues that it was massive fiscal stimulus borrowing and spending by the government that offset this decline and enabled Japan to maintain its level of GDP. In his view, this avoided a U. He argued that monetary policy was ineffective because there was limited demand for funds while firms paid down their liabilities. In a balance sheet recession, GDP declines by the amount of debt repayment and un-borrowed individual savings, leaving government stimulus spending as the primary remedy.

Krugman discussed the balance sheet recession concept during , agreeing with Koo's situation assessment and view that sustained deficit spending when faced with a balance sheet recession would be appropriate. However, Krugman argued that monetary policy could also affect savings behavior, as inflation or credible promises of future inflation generating negative real interest rates would encourage less savings. In other words, people would tend to spend more rather than save if they believe inflation is on the horizon.

In more technical terms, Krugman argues that the private sector savings curve is elastic even during a balance sheet recession responsive to changes in real interest rates disagreeing with Koo's view that it is inelastic non-responsive to changes in real interest rates. A July survey of balance sheet recession research reported that consumer demand and employment are affected by household leverage levels.

Both durable and non-durable goods consumption declined as households moved from low to high leverage with the decline in property values experienced during the subprime mortgage crisis. Further, reduced consumption due to higher household leverage can account for a significant decline in employment levels. Policies that help reduce mortgage debt or household leverage could therefore have stimulative effects.

A liquidity trap is a Keynesian theory that a situation can develop in which interest rates reach near zero zero interest-rate policy yet do not effectively stimulate the economy. In theory, near-zero interest rates should encourage firms and consumers to borrow and spend. However, if too many individuals or corporations focus on saving or paying down debt rather than spending, lower interest rates have less effect on investment and consumption behavior; the lower interest rates are like " pushing on a string.

One remedy to a liquidity trap is expanding the money supply via quantitative easing or other techniques in which money is effectively printed to purchase assets, thereby creating inflationary expectations that cause savers to begin spending again. Government stimulus spending and mercantilist policies to stimulate exports and reduce imports are other techniques to stimulate demand. Behavior that may be optimal for an individual e.

Too many consumers attempting to save or pay down debt simultaneously is called the paradox of thrift and can cause or deepen a recession. Economist Hyman Minsky also described a "paradox of deleveraging" as financial institutions that have too much leverage debt relative to equity cannot all de-leverage simultaneously without significant declines in the value of their assets. During April , U. The recession, in turn, deepened the credit crunch as demand and employment fell, and credit losses of financial institutions surged.

Indeed, we have been in the grips of precisely this adverse feedback loop for more than a year. A process of balance sheet deleveraging has spread to nearly every corner of the economy. Consumers are pulling back on purchases, especially on durable goods, to build their savings. Businesses are cancelling planned investments and laying off workers to preserve cash.

And, financial institutions are shrinking assets to bolster capital and improve their chances of weathering the current storm. Once again, Minsky understood this dynamic. He spoke of the paradox of deleveraging, in which precautions that may be smart for individuals and firms—and indeed essential to return the economy to a normal state—nevertheless magnify the distress of the economy as a whole. There are no known completely reliable predictors, but the following are considered possible predictors.

Analysis by Prakash Loungani of the International Monetary Fund found that only two of the sixty recessions around the world during the s had been predicted by a consensus of economists one year earlier, while there were zero consensus predictions one year earlier for the 49 recessions during Most mainstream economists believe that recessions are caused by inadequate aggregate demand in the economy, and favor the use of expansionary macroeconomic policy during recessions. Strategies favored for moving an economy out of a recession vary depending on which economic school the policymakers follow.

Monetarists would favor the use of expansionary monetary policy , while Keynesian economists may advocate increased government spending to spark economic growth. Supply-side economists may suggest tax cuts to promote business capital investment. When interest rates reach the boundary of an interest rate of zero percent zero interest-rate policy conventional monetary policy can no longer be used and government must use other measures to stimulate recovery.

Keynesians argue that fiscal policy —tax cuts or increased government spending—works when monetary policy fails. Spending is more effective because of its larger multiplier but tax cuts take effect faster. For example, Paul Krugman wrote in December that significant, sustained government spending was necessary because indebted households were paying down debts and unable to carry the U.

This would be fine if someone else were taking up the slack. What the government should be doing in this situation is spending more while the private sector is spending less, supporting employment while those debts are paid down. And this government spending needs to be sustained Some recessions have been anticipated by stock market declines. In Stocks for the Long Run , Siegel mentions that since , ten recessions were preceded by a stock market decline, by a lead time of 0 to 13 months average 5.

The real-estate market also usually weakens before a recession. Since the business cycle is very hard to predict, Siegel argues that it is not possible to take advantage of economic cycles for timing investments. During an economic decline, high yield stocks such as fast-moving consumer goods , pharmaceuticals , and tobacco tend to hold up better. There is significant disagreement about how health care and utilities tend to recover. There is a view termed the halfway rule [40] according to which investors start discounting an economic recovery about halfway through a recession.

In the 16 U. Thus, if the had recession followed the average, the downturn in the stock market would have bottomed around November The actual US stock market bottom of the recession was in March Generally an administration gets credit or blame for the state of economy during its time. Thus it is not easy to isolate the causes of specific phases of the cycle. The recession is thought to have been caused by the tight-money policy adopted by Paul Volcker , chairman of the Federal Reserve Board, before Ronald Reagan took office.

Reagan supported that policy. Economists usually teach that to some degree recession is unavoidable, and its causes are not well understood. Consequently, modern government administrations attempt to take steps, also not agreed upon, to soften a recession. Unemployment is particularly high during a recession. Many economists working within the neoclassical paradigm argue that there is a natural rate of unemployment which, when subtracted from the actual rate of unemployment, can be used to calculate the negative GDP gap during a recession.

In other words, unemployment never reaches 0 percent, and thus is not a negative indicator of the health of an economy unless above the "natural rate," in which case it corresponds directly to a loss in gross domestic product, or GDP. The full impact of a recession on employment may not be felt for several quarters. Research in Britain shows that low-skilled, low-educated workers and the young are most vulnerable to unemployment [45] in a downturn. After recessions in Britain in the s and s, it took five years for unemployment to fall back to its original levels.

Productivity tends to fall in the early stages of a recession, then rises again as weaker firms close. The variation in profitability between firms rises sharply. Recessions have also provided opportunities for anti-competitive mergers , with a negative impact on the wider economy: The living standards of people dependent on wages and salaries are not more affected by recessions than those who rely on fixed incomes or welfare benefits.

The loss of a job is known to have a negative impact on the stability of families, and individuals' health and well-being. Fixed income benefits receive small cuts which make it tougher to survive. By this new definition, a total of four global recessions took place since World War II:

Even in, the articles of the women bad economy. S. Donald trump keeps taking credit for the party leadership of leading economists charged with dating the. In a rough economy, stock numbers are down, but online dating is up. say singles seek the comfort of relationships during difficult times.

THE last five months have been filled with grim numbers, most of them preceded by a minus sign. Nearly , jobs lost in January. The Dow, down more than 2, points since September. And yet, those negative numbers seem to be having a positive effect on romance — or at least the search for it. Online and offline matchmakers are reporting that dating interest is up, way up.

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In economics, a recession is a business cycle contraction when there is a general decline in economic activity. In the United Kingdom, it is defined as a negative economic growth for two consecutive quarters.

It’s the Economy, Girlfriend

Jesus said that the poor would always be with us. Despite the best efforts of philanthropists and redistributionists over the last two millennia, he has been right so far. Every nation in the world has poor and rich, separated by birth and luck and choice. The inequality between rich and poor, and its causes and remedies, are discussed ad nauseam in public policy debates, campaign platforms, and social media screeds. However, the relentless focus on inequality among politicians is usually quite narrow:

Millennials Didn’t Kill the Economy. The Economy Killed Millennials.

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W hen a staid American institution is declared dead, the news media like to haul the same usual suspect before the court of public opinion: The 80 million—plus people born in the United States between the early s and the late s stand accused of assassinating various hallmarks of modern life.

Until , it was the largest point drop in history. But the stresses that led to the crash had been building for a long time. By March 5, , it had dropped more than 50 percent to 6,

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