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A resession

Discussion in 'Starting a Lawn Care Business' started by Paradise Landscapes, Jan 22, 2008.

  1. Paradise Landscapes

    Paradise Landscapes LawnSite Senior Member
    Posts: 960

    I've been watching the news. The people are talking that we may be going into a resession. Can anyone explain more about this economic problem if it occurs?
  2. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    it has been occouring for quite some time now......

    It's when it takes more money to purchase the same product....

    it means how strong the dollar is....

    Jsut think of it.............What if It took a wheel barrel full of cash to purchase a loaf of bread ?

    that means the dollar is worth nothing....

    I guess you were not around durring the 80's ..

    that's when it started and it hasn't stopped yet.
  3. hackitdown

    hackitdown LawnSite Silver Member
    Posts: 2,505

    The typical definition of recession is when the measure of the Gross Domestic Product (GDP) becomes smaller. Economist measure the total value in dollars of all goods and services produced (all business) in the country to determine the GDP. It usually grows a bit from quarter year to quarter year. If it shrinks, they call it a recession.

    A recession does not always mean high unemployment or companies failing, etc.

    When the GDP declines, it is usually by a very small amount. But often times consumers and people that run companies get spooked, and slow down hiring or purchasing, which can compound the problem.
  4. Busa_bill

    Busa_bill LawnSite Member
    Posts: 179

    Speculation is a driving force. In compairison - although oil is $90+, the majors are playing it safe on their production and exploration dollars. That is because the increase in oil prices are due to speculation and not based on consumption and reserves.

    With global information technology, the possible recession situation may be different than anything we have ever seen. Fear is a powerful thing.
  5. Roger

    Roger LawnSite Fanatic
    Posts: 5,923

    I think therein lies the problem. Too many people in the media need something to talk about, and all the discussion leads people to think a recession is near, or one already has happened. With the news, people withdraw, keeping cash out of the economy, and the problem becomes more pronounced. And, with those changes, the talking heads talk more, the people withdraw, ... The problem spirals downward, feeding on itself.

    In the end, what happens becomes a self-fulling prophecy. I think the media has contributed in a significant way to the issues of the past few day.

    I could be wrong, but I believe the media has costs us much money with all the idle chatter.

    Having said that, the issue could be much different than previous history. Now, the global impact is much stronger than in the past. Apparently, the huge drop in foreign markets yesterday is an indicator that the US will not be importing as many goods. The global economy has never been so closely intertwined in past recession events as it is now. Despite some of the foreign markets saying they are not strongly based upon the US, the market reaction of yesterday would say otherwise. I think we are journeying into unknown waters on this one.
  6. WJW Lawn

    WJW Lawn LawnSite Bronze Member
    Posts: 1,330

    SO TRUE!! According to the media the end of the world is near....everyday at 6 oclock.
  7. NC Greenscaper

    NC Greenscaper LawnSite Senior Member
    Posts: 446

    Ignore the media and keep doing what you do. If your cost goes up raise your rates. If you get fewer calls work harder at your sales. Some days are diamonds and some are stones. Just stay smart about what you do don't be to overly optimistic about future growth and borrow and spend money you don't have.
  8. barefeetny

    barefeetny LawnSite Senior Member
    Posts: 533

    nationaly i can't speak

    locally a few of the towns i work in have been hard hit

    factorys close and suddenly 2000 people out of 3000 are out of work

    then they go out and mow there own.... and their neighbores for 10 dollars

    can't blame them, times are tough

    i once sold cords of wood at 80 dollars a cord to keep the lights and heat on because my factory closed a week before x-mas

    it makes it tough to do biz, but most of my customers are loyal...

    i let some that are in a bad way slide a little on promt payment and surpise most of them get caught up

  9. Grits

    Grits LawnSite Silver Member
    from Florida
    Posts: 2,994

    It's all hype from the media and the democrats. The democrats talk about how bad it is getting and how they will fix it, when in reality it isn't that bad and there isn't much to fix. The media plays right along with it so they will have something to broadcast. But the fear that all this talk creates can indeed cause some problems. The politicians just talk about recession and the people will start to act like there actually is a recession. Keep doing what you are doing and don't be afraid to spend like normal. If spending stops, then that will create a real problem.
  10. jdmcat

    jdmcat LawnSite Senior Member
    from Idaho
    Posts: 439

    good news isn't interesting, therefore they don't usually report it. instead they take something small and try to make it seem like the sky is falling. you want to know how the economy is doing? ask yourself this question... am i doing better financially than i was 5 years ago? the vast majority of people will say yes, and i'm one of them.

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