For months now there has been anxiety about recession. The stock market is extremely volatile, the mortgage industry is in a horrible slump, as is consumer confidence, and there is increasing concern about US dollar loosing value.

According to Yahoo! news, there were 562 mentions of the word stagflation – a hybrid term for stagnant economic growth and continuing inflation – in major newspapers and wire services since February. While journalists and other analysts theorize about what needs to be done to improve the sagging US economy, few are looking at how the threat of recession and evidence affect consumers. Either way, the affects are like ripples in the economic pond starting at the consumers and spreading from there.

The difference between a depression and a recession is largely related to who is affected. While consumers are affected in both instances, they are quite possibly affected more directly and adversely during recession. Businesses and stock market traders often have a financial padding to fall back on, however more and more the average citizen fails to save for a rainy day. This is not because they don’t want to, but rather because they simply cannot afford to (or so they think).

High unemployment rates and inflated costs for consumer goods feed into the crunch on businesses that then pass the costs on to their customers. Like dominoes lined up, the affects of economic downturn seem to spiral out from there with businesses beginning to hurt because of reduced retail sales and consumers generally having to pinch every penny. It’s a scary cycle that feeds on itself unless something is done about it.

Several Know More Media authors have been following this issue very closely so I will leave you with links to their expert advice on how to protect yourself and your business during the national economic crisis.

BizCreditPolicy

• Top 5 Ways to Limit Your Risk During a Recession (view article)
• Top 6 Ways to Protect Your Business During a Recession (view article)
• HELP! How Can I Survive a Recession? (view article)
• Resources to Help Your Business Survive a Recession (view article)

GrowYourFunds

• If Recession is Coming How Should You be Positioning Your Portfolio (view article)
• Please – No Rash Decisions Inside Those 401k Plans (view article)

WorkFromHomeMomma

• Eight Deadly Mistakes That Will Completely Ruin Your Dream of Business Success (view article)