Can You Survive The Recession? It’s Going To Get Much Worse…
Don’t kid yourself… this recession is FAR from over! In my own humble opinion, a worldwide ‘depression’ is underway. Why do I think this? Because the major driving force behind economies of the world are driven by human CONFIDENCE!
When people feel confident, secure and reasonably optimistic about the future, they like to consume (or spend!). But right now they are becoming increasingly alarmed about their financial security. The recent bank collapse (RBS Group came within TWO HOURS of a total meltdown and they had 15 million UK bank customers!) and now the government ‘austerity’ cutback budget are making people VERY nervous!
Before the effects of the ‘austerity’ budget are felt, most people might agree that the ‘structural deficit’ that the government has sworn to eradicate within five years sounds like a good thing. The problem is, for the ‘plan’ to work the government is gambling that consumer demand (confidence!) will rise, driving profits of business up, in turn causing the economy to grow! The reality I am suggesting is that consumer demand (confidence!) will in fact tumble and tumble and tumble!
Think about it… here are my top 10 industries that typically are unaffected by a recession (in no particular order):
- Sweet, cosmetics and contraceptives – people look for inexpensive ways to ‘pamper’ themselves and make them feel ‘good’ when they can’t afford ‘luxuries’.
- Luxury retail – the really, really rich tend to keep spending during recession, but NOT the aspirational rich, the ones who are ‘bluffing’ their way to the top. They have to stop or cut back severely.
- Repossessions, debt collectors, bankruptcy accountants and solicitors – self evident I hope?
- The government – civil servants – traditionally, impervious to recession – someone has to run the country – right?
- Schools – our kids still need an education don’t they?
- Vices – cigarettes, alcohol, gambling and porn! Traditionally, these do well in a recession as people turn to ‘distractions’ to ‘escape’ the recession. Though gambling usually does better when people are feeling wealthy and the porn industry is increasingly hit by ‘free’ porn on the web (apparently!).
- Discount retailers – the rise and rise of ‘pound shops’ and ‘value’ brands in the supermarkets is hard to miss.
- Information technology – despite the dot com collapse in the early 2000’s – the turnover in IT professionals is still high. Companies still have to process vast amounts of data and need the staff to keep that working and ahead of the competition.
- Health care – people still get sick and need care during recessions don’t they?
- Non-cyclical businesses. Some business’s never go away. Utility suppliers (gas, water, electrics), funeral directors, military etc.
OK that’s by no means an exhaustive list; (I didn’t mention network marketing for example which traditionally BOOMS in recessions) but let’s look at the list in more detail. Specifically, how many jobs in the above list are paid for by the government? Well, first number 4) – the civil service – obviously! But then there’s local government, education, military and health care!
Now correct me if I’m wrong, but at the time of writing this article (August 2010) aren’t we waiting for the government to announce where its cuts axe is actually going to fall? Departments have been ordered to find an unprecedented minimum of 25% of savings up to 40%! With healthcare and education being told they won’t be affected and yet already we’ve been told that ‘health trust’ powers are to be handed to GP’s and NHS Direct is being replaced (job losses!)
You don’t have to be a rocket scientist to realise that conventionally ‘safe’ civil servant jobs WILL have to go! Tens of thousands of them conservatively! Worse still, is the government spending that’s being cut and how it affects businesses. For example, the recent slashing of the schools re-building budget will knock the building industry out towards the stratosphere of economic gloom! The schools rebuilding program was the biggest employer in the buildings sector until its cancellation.
Finally, the government is cutting benefits to force (sorry, ‘encourage’) people to get ‘jobs’. Sound idea in principle – but WHAT jobs? Where are these jobs? In reality, those in most financial need are going to be thrown deeper into hardship and whatever limited spending they had, is going to be hit hard!
Bottom line, CONFIDENCE is going to nose dive, through the fall, through the earth’s mantle, into the core and through to China! And in case you think China is going to save the world – China is tipped to be the world’s largest economy within 20 to 30 years – remember that China’s economy is HEAVILY dependent on Americans consuming Chinese made products! And the American economy is in FAR worse state than the UK’s! When, not if, WHEN confidence in the US drops, look out world, here comes the ‘depression’!
So, what can you do about it?
- Well, first, get educated about it!
Don’t take my word for it! Why should you? Do you own due diligence. Keep abreast of world economic events, read the financial press and learn about how economies work!
- Be prepared!
The coming ‘depression’ is nothing to worry about IF you are prepared!
- Place yourself into jobs within traditionally recession proofed industries and
- If you are REALLY smart, create for yourself MULTIPLE streams of income. Start a home-based business part-time for example.
- Cut out the non-essential spending – I know this is what damages economies, but trust me on this; YOUR expenditure is not going to save the world.
- Be SMART about what you spend your money on – the value brands are often indistinguishable from the dearer branded products for example.
- Save, save, save and if you HAVE savings…
- Get yourself on a reputable real estate investment course and learn how to make money from property investment – DON’T play it – GET EDUCATED about it first! Lesson one… the time to buy property is DURING a recession! (IF you know what you are doing – it’s NOT rocket science – but I repeat… GET EDUCATED!)
OK – if you are still with me, well done for reading this far! And thank you! I hope I’ve given you some ‘food for thought’. I deliberately didn’t talk about network marketing which is often a very strong recession proof business (CLICK HERE), because I recognise that not everyone thinks that they can do network marketing. I never understand why? But that’s a fact, so I’ve gone with it and looked at the more ‘conventional’ options.
Remember, if you want change in your life….
The Change Begins With YOU!
Robin J Emdon
Life Coach & Attraction Marketing Professional
Email: [email protected]