Why the recession we may or may not be heading for won't be that bad 💪

An update on three massive economic tailwinds 💨

The next recession doesn’t have to be particularly bad. (Source: Getty Images)

While the economy may not be in a recession now, it’s certainly slowing and is at risk of going into a recession.¹

However, not every recession has to be an outright economic debacle like the global financial crisis or the Great Depression.

Yes, unemployment would likely rise during the next recession, which would be unquestionably painful for those affected. But the losses could be limited and the duration of the economic contraction could be relatively short.

This is because the slowdown we’re experiencing right now is not the result of financial excesses on the part of consumers and businesses, which would’ve increased the risk of the bottom falling out of the economy. Rather, the economic lull has at least partially been manufactured by the Federal Reserve in its effort to bring down inflation by reining in demand.²

As TKer subscribers know, the economy continues to be bolstered by massive tailwinds, three of which I addressed in the March 4 newsletter.

Here’s an update on how these tailwinds are looking: