Recession Fears

Recession fears are very prevalent today. When I read the facts, I kind of have to chuckle to myself. The headlines read something like unemployment at it’s worst in the last 23 years. I remember 23 years ago.

Back in the late ’70’s and early ’80’s, the unemployment rate had kind of settled in the 8% range, slightly less than what we have now. A recession at that time pushed it over 10%. People were complaining about tough times but there was nowhere near the Chicken Little pronouncements you see trumpeted in the news today.

What has struck me as so interesting is that the economy has been good for so long, there’s an entire generation of workers who have never seen a recession. It’s been so good for so long that 8.5% unemployment is an economic apocalypse instead of just ‘not so good’ news.

Let me put these numbers in another perspective. Economists say that about 4% unemployment is about as low as you can get. This represents those people who are between jobs. If it gets much lower, the economy suffers because there aren’t enough workers to fill jobs.

So, you subtract the 4% transient unemployment from 8.5% and you get about 4.5% additional employment. In other words, the employment rate is over 95%! Even if you don’t subtract out the transients, the employment rate is over 91%!

In perspective, the depression unemployment rate was over25% at it’s highest. FDR said it best, “The only thing we have to fear is fear itself!”

Now that I have talked about what people are fearing the most, how do you protect yourself from it? One of the best things is to control at least a good part of your income with a home based business. If you want to see if this could be for you, I suggest going to FreeRKCDForYou.com and requesting a free CD by Robert Kiyosaki called, “The Perfect Business.”