Question

The country has is experiencing a recession where the unemployment rate is at 10% and climbing. While you do still have your full-time job at this time, you are very concerned about the future of America’s economy – will you lose your job, will you be able to move up in the work force, should you buy a home, etc.



Your Job:

Explain how you would respond in this economic situation based off the information above (i.e. there is a recession with high unemployment but you have a job). How would you handle your money? Would you spend more? Spend less? Why?

Answer 1

Answer:

The country is in a recession and unemployment keeps growing in the country. This means that businesses are still firing people. In the event that I lose my job, it also means that it is likely that I will remain unemployed for at least some time.  

So, I will spend only on necessities and try and increase my savings. The best thing I can do to minimize the chances of getting fired is to add new skills to my existing skill set. I’d research the skill sets that are equally necessary in both recessions and expansions. Then I’d invest my time and money in acquiring those skills.

That way, even if I get fired, the chances of finding a job are slightly better if don’t have the skill set.