“This is the worst recession since The Great Depression!” How many times have you heard that over the past 6 years?
By definition, a recession is an “economic downturn of activity,” measured by six consecutive months (two quarters) of decline in the country’s GDP, or gross national product (see recent blog, “The ABC’s of the GDP”). Usual symptoms of a recession are a large decrease in consumer spending, a sharp increase in unemployment and a corresponding loss of business profits and personal income.
So what causes a recession? It’s an economic event or series of events that, literally, jolts the nation’s financial stability. The jolt is so strong that businesses stop investing.
Our current recession – started in 2007, was the jolt from the bursting real estate “bubble.” So, is this “the worst recession since The Great Depression”? According to Forbes.com contributor, Peter Ferrara, “…since the Great Depression, recessions in America have lasted an average of 10 months, with the longest previously at 16 months. The latest recession began in December, 2007. Yet here we are 62 months after the recession began, and there is hardly any recovery at all.”
It’s important to note that, officially, according to the National Bureau of Economic Research, the recession ended in June, 2009. While many Americans, according to their lower income, lower number of working hours and lower opportunity for higher paying jobs, feel as if the recession is, indeed, still in effect. Officially, the economy is recovering very slowly.
Recovery and Prevention
At Paradigm Life, we educate our clients on how to protect the money they earn. Everyday, well-meaning people try to make the right decisions with their finances, but still find their profits at a loss. A lot of loss happens because of economic laws or conditions (like the latest recession) that inhibits successful wealth building.
Whole Life Insurance is a way to protect your earnings and guarantee your financial growth, regardless of the current condition. For over a hundred years, this product has been used by the rich to protect and pass along their wealth. If high-powered families like the Rothschilds and Kennedys use it, and have been able to stay wealthy, than you can too.
For more knowledge about the benefits of Whole Life, click on our Resource Page, where you’ll find articles, webinars, and podcasts.