Who Really Fuels Our Economic Recovery?

A recession is coming will you help or hurt?

Tom Egelhoff

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Image by Gerd Altmann from Pixabay

According to the Feds, the last recession ended in 2009. We had a pseudo recession due to Covid over 2021–22.

The definition of a recession is two or more consecutive quarters of negative growth in our GDP (Gross Domestic Product).

In other words going broke slowly.

And while the recent levels of GDP growth since 2009 have been up and down due in part to the Middle East and Covid, it’s still considered a positive economic sign.

Jobs or Work?

It’s the old chicken and egg question.

Does economic recovery mean jobs or work? You might ask, “Aren’t they the same thing?” Here’s the difference.

We always have work but there are not always jobs. For example, in Montana, with our low population there is great difficulty of many companies to find employees with the experience they need.

We’re the fourth largest state with just over one million in population.

We currently have an unemployment rate of 2.3 percent. At a labor force participation rate of 62.1 percent, Montana ranks 27th in the nation.

The reason we’re 27th is due to shortages in electricians, experienced construction workers, machinists, and other specialized workers.

So, the work is there but there is a very small, qualified workforce available for certain types of needed jobs.

Consumer Demand

Doesn’t consumer demand come into play somewhere? Sure, it does. But customers rarely created product demand. That’s marketing’s job.

How much demand was there for the hula-hoop the day before it came on the market? The Pet Rock? Virtually none.

Once people saw the hula-hoop, through marketing and advertising, a demand was created.

Anyone who’s ever been Christmas shopping for a kid’s toy knows that each year there’s that one impossible to find toy.

Entrepreneurs Are the Movers and Shakers

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Tom Egelhoff

Top Writer on Government, Entrepreneur, Radio Talk Show Host, Subscribe to my FREE Small Town Business Newsletter on Substack https://tomegelhoff.substack.com/