It's Time to Get Involved.

As businesses are forced to temporarily shut down due to the Coronavirus, stock markets around the world have become volatile, mainly due to uncertainty during this unprecedented time.  Moreover, millions of people are filing for unemployment and small business owners are struggling to stay afloat. Perhaps the scariest part of the looming recession is the plunge into unchartered territory, as the modern economy has not faced a situation similar to COVID-19. An economy is considered in a recession when two consecutive economic quarters produce declines in output. Last quarter, output fell by 0.4 points and this quarter it has fallen by 12%. In fact, the word "looming" is, in this case, should not be used, as a recession, by definition, is already here.  The main takeaway from this article is that uncharted territory and uncertainty can lead to a recession. COVID-19's uncertain path certainly produces the perfect conditions for an economic disaster. 

 - Sarah Levine

Source: New York Times