What Happens After The Recession?

Much of this week's Intelligent World is focused on current international events. Many commentators and business owners are focused on what is happening right now in the global economy. And who can blame them for keeping their head down to focus on their business so they can become more competitive. But it is important to not lose sight of what will happen in the long term. How will the long-term effects of the recession affect your company? It is good to be aware of this now so you are prepared for it later.

The past decades of prosperity have made Americans consumption-oriented, possibly more so than any other nationality. We have spent more than we have taken in for some time now. This debt-to-income ratio proved to be too much for us to handle. As a result, consumer spending may decrease after the recession ends. Along with this idea, the recession has fundamentally changed the way people spend their money. It has changed their motivations and the psychology behind purchases. We will have to pay attention to consumer spending data worldwide to see how this will affect the global economy, as well as your local economy and your own business.

Remember $4.00+ gas last summer? Well, don't be surprised if gas reaches that figure again. Recently, prices have increased with even slightly positive economic news. And prices will most likely increase now that there will be more of a demand for fuel in developing countries.

And businesses in the US can also expect higher taxes. Because of the cost of the bailout, along with the funding needed for government programs like Medicare and Social Security, and the goals of the Obama administration, there is no way to pay for it all except with higher taxes.

This recession has changed people and governments around the world. It will definitely be interesting to see what changes as the economy recovers. And who knows what surprises will pop up along the way?