While politicians and pundits debate the definition of recession and whether we are in one, one is coming, it’s never coming or what the meaning of “is” is, I have my own definition based on my experience.
The word “recession” comes from the Latin/English - to go or move back or move away from a previous standard or position. Given this, since January of 2021 I have “moved away from previous standards.” Those being:
1st - My 30 years of retirement savings has been “moved away from a previous standard” by 16%. Further, its value has decreased by an additional 7% due to inflation.
2nd - Fewer trips with the car due to the rises in price of gas that began January 2021. As the prices increase, my use of the car decreases AND as the prices decrease, its use doesn’t necessarily increase. I cannot afford to purchase an EV in spite of what mayor Pete suggests.
3rd - We shop less for groceries to reduce grocery bills. Purchases are more budget based.
4th - Any use of disposable income (assuming there is any) is questioned and most likely stopped.
I expect that this isn’t anything that others are experiencing. Personally tightening down to be able to pay ever increasing bills.
So, I’m managing my own personal “recession” while those that may not be impacted by the higher prices, lower dollar value and static income can debate the definition and spin on their thumbs and tell us that everything is great. Anyone with an ounce of sense can see that it isn’t so. I recall the now cliché statement by the administration that whether you voted for him or not he “will fight for you.” I’m a baby boomer with a fixed income. Are you really “fighting for me?”
VOL. 112, NO. 51 - Dec. 21, 2022