Americans brace for possible looming recession – What you can do to prepare

Published: Jul. 20, 2022 at 11:46 AM EDT

WASHINGTON (Gray DC) - When most people think recession, they think of 2008. The failure of a wall street investment bank ignited a firestorm that sent stocks into a freefall and caused thousands to lose their jobs. It was bad, and long - lasting 18 months. University of North Dakota economics professor Cullen Goenner says we’re likely headed for another recession, but it may not be as devastating as 2008.

“I think the more important question whether or not a recession is going to occur is really how how bad is the recession going to be?” said Goenner. “I would tell you that I think it’s going to be more like the recession that we saw in 2001 where it’s relatively short lived. If it does occur and we’re only going to see a modest increase in unemployment”

To curb inflation and slow down the economy, the fed will likely have to raise interest rates - which historically trigger recessions. Geonner believes North Dakota might fare better than most states.

“North Dakota is largely insulated from the larger economy,” he said, “I think we would only feel those effects if oil prices were to plummet - which is unlikely to happen here in the near future”

Due to trade embargoes with Russia and other geo—political factors, the Biden administration and the Republican party are looking for domestic solutions to our energy crisis.

“We need to be able to do two things at once,” said Amos Hochstein, who works with the Biden Administration. “Bring gasoline prices down in the United States, bring diesel prices down, bring electricity prices down, and also at the same time, invest in our future.”

Senator John Hoeven tweeting,

“Solution is simple: each additional barrel of oil we produce in the u.S. Helps reduce prices & lowers inflation for american consumers. Plus, each barrel of oil we produce here replaces production from russia & other countries that also have little to no environmental standards.”

Oil prices are just one variable that could lead to a recession. If and when that recession comes, goenner says there are things you can do on an individual level to brace for what’s to come.

“Saving money and putting money aside in case we should lose our job or we lose some of our extra income that we might be making in other ways,” said Goenner.

He adds that should you find yourself out of a job, see what else is out there.

“We see that labor force participation is is relatively still low here in the country, hasn’t really bounced back after the pandemic. So I would tell people there’s still a lot of great job opportunities out there.”

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