Recession How to Survive ~ Leila Hormozi

Here's a couple of the ways that it does.

One is that unemployment goes up.

What does that mean? That means that a lot of people lose jobs.

What you see right now is that a lot of employees have the upper hand in terms of what they're asking to be paid and the fact that there's less of them to source from.

What it changes to is typically there are fewer of them in demand.

There's less jobs available and you can pay less for the talent.

The second thing that happens is that purchasing power goes down.

You can already see that in a few articles that have come out.

About 75% of Americans are saying that they're reducing their spending in preparation for a recession.

And so what that means is that most people, they stop spending money on things that aren't necessary.

Someone installing a pool, for example, probably not going to do that during a recession.

It's not necessary, and it's a large capital expenditure.

The third thing that happens is that typically manufacturing declines.

The reason for that is because there's less people working because businesses are cutting down.

And so their ability to produce goods actually tends to go down.

And ironically, sometimes then the prices also go up because they have less manufacturing, they have less people.

So they're charging more to recoup their costs.