The United States is facing a tough economic period. After taking many unforeseen punches from a pandemic, economic sanctions due to Russia’s invasion of Ukraine stand to deliver the knockout punch.
In just the last year, the prices of food have increased by 11.4%, while gas prices have increased by 49%. These inflation numbers have not gone unnoticed by our government, and the Federal Reserve has taken action by increasing interest rates to curb inflation. This increase usually occurs whenever the inflation rate rises over 2% a year, however, this year, it is 8.3%.
So, what can we, as average everyday students, do to protect ourselves from a recession?
The best thing to do is to continue your education. College can be a very hard and stressful period in your life, but you must stay committed. As we enter the workforce, there may be a higher competition for jobs since the Great Recession in the late 2000s. You must be committed to your education so you will be a higher priority to those in top positions.
When choosing your next job, you have to make sure the company is committed to you as well. Having job security during a recession is the most important thing you can do to protect yourself from the waves of the economy.
How can you ensure that your job will be faithful to you?
The best thing you can do is to have uncomfortable conversations with your bosses. You will have to know where they stand and how important you are to the business. If you do not feel that you are important, and your higher-ups are not rating you as high as you feel you should be, then it might be worth it to find a new job.
It is also important to not panic about the situation we are in. . Although the reasoning for this recession may be very unique, recessions are not unusual. Our economy faces many boom and bust cycles. Saving is very important to your personal future, but so is spending money. When too many people, like yourself, spend little money, it can damage the economy.
When creating a budget, it is essential to create a portion of your income that is considered disposable. When you do not spend your money, you eliminate many job fields that are considered unessential. Our economy is tied together and this could cause an increase in inflation rates in essential industries like food, energy and gas. John Maynard Keyes, often considered the most influential economist, highlighted the importance of consumerism and based his economic theory on it. Consumer spending is also the largest contributor to our Gross Domestic Product figures.
A lot of the change you can make is in the voting lines. As midterm elections come up, you should vote for those that have views that align with governmental action in this recession. This is very important to benefit our economy.
In many cases of economic downfall, it has been a governmental intervention that has alleviated many of our issues.For example, our Federal Reserve, the United States’ bank that attempts to control issues with our financial status, was created as a result of a financial crisis in 1907.
In my opinion, Chery Beasley is the best candidate that you can vote for in this election in the senate if improving the economy is one of your goals as a voter. She is running against Republican Ted Budd. Beasley advocates for governmental interference in economics, and her previous experience in the Service Employees International Union increases the likelihood that she will fight for worker’s rights.
As we brace ourselves for hard economic times, it is important to note that you can be in control of a lot of things happening in our current socio-economic system. Although your impact will be limited to your age and status, change usually is rooted through a new generation of people that looks at things through a new lens. In the end, make smart decisions that will benefit you, but also those around you.
