Tuesday, November 9, 2010

FinancialEdge: 5 Long-Term Consequences Of The Recession

Whenever the word "recession" comes up, people expect a certain amount of damage, and damage of a certain type. Everybody knows that there will be job losses and a general sense of gloom and malaise. Most people also seem to expect the government to "do something" to end the recession. Along the way, the stock market falls, interest rates drop and overall economic activity slows down. It is never pleasant, but it is a relatively routine part of the economic cycle. The Great Recession may be different. In addition to the "normal" effects, some of the consequences of this recession could run deep and last for many years. (It's not all bad. Check out The Bright Side Of The Credit Crisis.)

I Love You, But ..."
This recession seems to be having a definite impact on family life. Industrial production is not the only "production" that has fallen - birth rates have dropped to record lows as people delay having children in the face of the economic troubles. What's more, there is the expected increase in divorces - not surprising, given that monetary issues are a common root cause of divorce and tough economic times sharpen those problems - as well as a big spike in prenup agreements.  

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