HOW TO BEAT THE RECESSION?

A recession is defined as the loss in GDP (Gross Domestic Product) for two consecutive quarters. However, this is just the technical definition and it is highly swayed by consumer confidence

So what is consumer confidence exactly? It is exactly what it sounds like. The more confident consumers feel about the state of the market the more likely they will be to spend - resulting in a steady infusion of money into the economy. The less confident consumers feel, the less likely they will be to spend. Unfortunately the state of the economy is not something your everyday-consumer can easily visualize and quantify so they often rely on its portrayal by media sources: Internet, newspapers, news broadcasts, etc. which are often negative. But as the old addage goes - negativity and controversy makes for interesting news.

As a result, we end up entering a downward spiral - snowballing in fear of the recession. And as the fear continues to feed off the negativity and subsequent reactions by consumers, we cause a deadlock between consumers, service providers, and retailers.

However, that doesn't mean we have to just let it be. What works one way can often be undone going the other way. If consumers make that first bold move to start spending again, in conjunction with service providers and retailers reducing their prices, we can achieve a positive cause-and-effect that will encourage more of the same. By crossing this chasm that separates the bull from the bear, we can collectively unravel the intricacies of the recession and gradually help recover some of the consumer confidence that was lost. So with the increase in consumer confidence comes our road to recovery.

Surely this is a very simplistic view of the dynamics of the economy, but the premise is there.

Let's all do our bit and fear not the shadow that doomsayers have cast on our economy.