When the economy takes a tumble and falls on its face, things that are “recession resistant” are things in the economy that still stand strong despite the recession. Or rather, companies whose products still move out the door, despite there being tough economic times. Think: drug companies, cable, cigarettes, coffee, and prunes. (What? You're going to want things to um, move...in good times and bad.)
It would take a lot for people to stop buying their Prozac just because they only got half their bonus money this year. It'd take a lot for people to stop wanting to download, um, "art films" despite getting no raise this year. And coffee? It's addictive. Try going 3 days without it and see how that feels. Yeah, you won't. You'd rather do without sensitive things, like a new washing machine. You'll fix your old one instead, and/or find a water polo player's stomach and just do the wash...manually.
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Finance: What is Recession?15 Views
finance a la shmoop what is recession well here's one here's another and
another and well here's an economic recession so technically when GDP [Set of teeth appear]
declines for two sequential quarters that is a recession and you can glean
enough from this most excellent chart that in most years GDP grows not
massively but relatively steadily and with compounding the US has grown GDP
from a trickle to a torrent in a recession economic activity declines [Recession definition appears]
maybe a half a percent a percent maybe two percent and you might not think
that's a big deal but we're a nation living on credit that is plastic these [Man using credit card]
things mortgages car loans bunch of other credit II kind of things so a
decline of even 1% when we were expecting growth of two is a delta of 3%
and that change is exacerbated with leverage when people fear for their job
safety they stop buying those extra pairs of earrings at the mall they get [Woman biting her nails]
one less tattoo and they stop making appointments at Botox Depot so all of
the sudden activity in given quote luxury sectors or otherwise unquote just [Person receiving a tattoo]
stops dead and there's a multiplier effect here as well because a wealthy
banker who used to throw 20 parties a year now only throws four so all those [Calendar displaying party days appears]
bartenders and oboe players and ice sculptors yeah they're all out of work
as well and then they buy less beer and that new ice pick the sculptor was gonna
buy yeah well she'll just sharpen her own and make do with it you know until
the GDP grows again after the recession is over in a few years so yeah [Boom/bust cycle appears]
recessions they're dangerous and credit high credit makes them all the more
dangerous so be wary
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