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From the news

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Recession:

People get scared. They stop buying stuff. So companies cannot sell the products they make. So they have to eliminate jobs. People lose their jobs. Unemployment rises.

Because people are losing their jobs, they don't spend much money. That means that stores are not selling clothes, smartphones, books, shoes, and furniture. The stores cut their hours. They go out of business.

More people lose their jobs. Unemployment goes up higher. People cannot find new jobs. Businesses are not hiring new people because of the bad situation.

People do not travel for fun, they save their money for necessary things. They do not eat out in restaurants. The travel industry (airlines, hotels, cruise ships, resorts) loses jobs. The unemployment goes up as waiters, cooks and managers lose their jobs.

People who did not save money cannot pay their rent. They go to live with relatives. Apartments go vacant. Landlords lose money. Houses are foreclosed by the banks. Nobody can afford to move or buy a new house. People cannot sell their houses as there are no buyers.

People cannot pay their taxes, so the government gets less money. The government gets less sales tax, and much less tax from businesses because they are not making profits.
The government cuts government jobs. More people are unemployed.

etc.

This is a recession.

When it gets really really bad, it is called a depression.

Depression: very high unemployment and deflation (Deflation is when stores keep cutting prices.) Profits evaporate. There are lots of people going to charities for food.



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a period of significantly reduced economic activity

(This is a standard dictionary definition.)

Students: We have free audio pronunciation exercises.
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Comments  

It doesnt help Emotion: sad.

If economic was an activity I wud go out and do an economic at hyde park.

You asked what the word recession meant. I told you.


economic is a adjective, not an activity.


Both of these words should be in your dictionary.

Clive

Students: Are you brave enough to let our tutors analyse your pronunciation?

My english will never improve

Don''t be impatient. These thing take time.


Make a resolution today to check every sentence you write for correct capitals and correct punctuation. This will greatly improve your writing. Emotion: smile

Clive

 AlpheccaStars's reply was promoted to an answer.
Teachers: We supply a list of EFL job vacancies

mosja,

The text almost tells you what a recession is:

... world economy ... shrink ... (at its fastest pace)

... it will be (the worst) recession ...

CJ

I wonder if the Spanish flu from 1919 causes the 1930s depression.

IMO, Spanish Flu is probably originated in China or maybe somewhere in Asia and Spanish was the first to report the flu because it was the first country that Chinese immigrate to. Telecommunications wasnt a major in China owning to how undeveloped it was during that era.

Until the 1950s the new flu was discovered and its called the Asian Flu.

In the 21st century, many diseases are originated from China (MERS, SARS). Fortunately, Ebola and The Swine Flu werent.

That is my assumption of the Spanish flu.

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