When will we
have the next recession? Nobody really
knows for certain. The better question
may be how will be combat the next recession?
The Federal Reserve cannot reduce interest rates to a below zero
percentage rate.
Some
presidential candidates have suggested lowering corporate taxes. That would definitely help by ensuring
companies had more cash for expansion, but many politicians will not touch this
for political reasons. Also, it still
may not result in enough job creation to offset the economic downturn of a
major recession.
Does this
mean that the next recession will be longer and more extensive than
normal? If any recession does have a
normal time period, the answer may be yes.
The tools we use to bring an economy out of the economic downturn are
already the being employed to prop up or subsidize the current economy. So, what happens when this economy takes a
turn for the worse and where would it be it we were not already “stimulating“
it?
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