What is a Recession? <ul><li>According to webster’s dictionary , a recession is a significant decline in activity spread across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income, and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's GDP. </li></ul>
<ul><li>According to recent statistics, the U.S. Unemployment rate is currently 9.4%, which is about 14 million people without a job. </li></ul>
A total of 2.6 million jobs were lost since 2008. An average workweek has also cut down to 33.3 hours. This is the WORST change in the economy in 25 years.
NATIONAL DEBT <ul><li>$11.3 TRILLION!! </li></ul>
<ul><li>A total of 321,480 properties received a default or auction notice or were repossessed last month. </li></ul><ul><li>One in 398 U.S. households received a filing last month. </li></ul><ul><li>1.8 million foreclosures have been filed since beginning of 2009. </li></ul>
Inflation <ul><li>Financial Institutions, individuals, and businesses are being hurt. </li></ul><ul><li>Insurance on treasuries is being asked for. </li></ul><ul><li>Other nations are no longer lending money to the US anymore because our debt is so high. </li></ul><ul><li>Inflation will soon be at 20%. </li></ul><ul><li>American consumers collectively owe $2.5 trillion on credit cards and loans. </li></ul><ul><li>American debt up 150% since 1994. </li></ul>
Can you imagine… <ul><li>Losing your job? </li></ul>
Or not being able to buy medicine for your loved ones? ?
Survival tips <ul><li>Wherever possible, use public transportation According to the American Automobile Association, the estimated cost of driving a single-occupant vehicle is between $4,826 (for a small car) and $9,685 (for a large car), depending upon mileage. By contrast, the annual average cost for public transportation for one adult ranges from $200 to $2,000, depending upon mileage, time of day, type of vehicle or service. Also, riding a transit bus is 91 times safer than driving your personal car. </li></ul><ul><li>Concentrate only on necessary expenses Purchase items that are only necessary for survival, such as, food, water, and shelter. Money spent on luxurious items should only be bought when basic survival needs are met. </li></ul><ul><li>Get rid of the credit cards as soon as you pay them off. </li></ul><ul><li>Credit cards can be tempting to use so eliminate them as soon as you can. It reduces debt and helps you manage your money. </li></ul>
<ul><li>Inform your family about the situation. </li></ul><ul><li>When your family is aware of the financial situation, they’re willing to work with you and help you save money. </li></ul><ul><li>Check your phone bill’s extra features and eliminate them. </li></ul><ul><li>Internet use isn’t necessary in your daily life when it’s available at cafes, libraries, etc. You can live without your Facebook, MySpace, and Twitter for a few hours. </li></ul>Cancel subscriptions to magazines and newspapers. You can find most of your news, articles, gossip, etc online so why spend extra money for a hardcopy?
<ul><li>Use coupons and be a smart shopper for groceries or other necessary items. </li></ul><ul><li>Plan meals and make a shopping list. </li></ul><ul><li>Look for “buy one, get one free” offers </li></ul><ul><li>Use a store savings card if your store offers one. </li></ul><ul><li>Use unit prices to get the better buy. </li></ul><ul><li>Buy store brand foods. They often cost less and are usually just as good. </li></ul><ul><li>Buy fresh fruits and vegetables in season to save money and get the best quality and flavor. </li></ul><ul><li>Look on the lower shelves for better deals. Brand-name companies pay to have their products at eye level to get you to buy them. </li></ul>
<ul><li> Even though people are struggling through an economic crisis, they still find happiness in their daily lives. So we (Waheeda Sabah & Sunit Mayall) strolled around the Capitol building of California and Old Sacramento, and we interviewed many strangers about how they keep that frown upside down.. </li></ul>
“ All I ask is the chance to prove that money can't make me happy” - Spike Milligan
<ul><li>Thank you for watching our presentation! </li></ul>