Depends on how we handle the current situation.
A recession is an economic correction after a long period of speculation on values usually to make a short-term gain. After the cash stop flowing and debts and credit are high, all the fictitious value fall and start a correction on reasonable values that creates unemployment, bankruptcies, defaults and low consumer confidence on short and mid-term economic trend. Consumer confidence is key to have a strong economy. If consumers stop consuming, businesses suffer, cash stop flowing and then we have a recession.
This is not the case now. What we have now is a temporary window of economic interruption not because of speculation, but because a world emergency that stopped temporarily our way to do business. After this crisis pass, we were supposed to return to our business as usual. We will have challenges, and some time to recover, but is something we can attain if we are aware that his is like when we wait the rain to stop to go outside. I don’t have a doubt that proactive businesses that detected the opportunity and learned their lesson will come back stronger than ever.
What is important in this crisis is to maintain our business strong, protect our assets and our brands, take care of our clients, research on how to make the business more competitive after the crisis, and stay informed about what stimulus may keep our business in a good position. We have on our side a strong government that will let the cash flow while we comeback.
Talking about recession now could trigger “The Toilet Tissue Factor”, people will loss confident in the economy creating a recession without bases and logics, just as the toilet tissue phenomenon. Instead of thinking on recession, lets think on opportunities and spread the world to change the pessimist feeling in a proactive action.
CPA Gustavo Torres Decos, PA
“Downtown CPA’s” – 407-913-9611; 407-738-6359; 407-913-5511; 787-602-0505
Any interview, please contact Deisamar De Soto-Torres at 787-602-0505