WILL THERE BE A RECESSION IN 2023?

The United States is currently in the longest economic expansion in its history. However, many experts believe that a recession is coming in 2023. This post will explore six reasons why a recession might occur

November 15, 2022

10:50 pm

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How Will it happen?

Will there be a recession in 2023? The United States is currently in the longest economic expansion in its history. However, many experts believe that a recession is coming in 2023. This post will explore six reasons why a recession might occur in 2023.

The end of the business cycle: The business cycle is the natural ups and downs of the economy. It is typically measured by the rise and fall in the gross domestic product (GDP). The current expansion began in June 2009 and is now the longest on record. However, increases don’t last forever. At some point, there will be a recession. Many experts believe that the end of the current expansion is near.

The end of the Trump tax cuts: In December 2017, President Trump signed a $1.5 trillion tax cut into law. This tax cut gave a boost to the economy. However, it is temporary. The tax cuts are set to expire in 2025. If they are not extended, it could lead to a recession.

Rising interest rates: Interest rates are currently at historic lows. The Federal Reserve has said that it plans to slowly raise rates over the next few years. As rates rise, it will become more expensive to borrow money. This could lead to slow economic activity and, eventually, a recession.

Trade tensions: The Trump administration has engaged in a trade war with China. It has also imposed tariffs on imported steel and aluminum. These trade tensions could lead to a recession if they are not resolved.

The debt: The U.S. government is currently $22 trillion in debt. This is the highest it has ever been. As the debt grows, it becomes more challenging to finance. This could eventually lead to a recession.

Demographics: The baby boomers are starting to retire. This is a large group of people who are leaving the workforce. As the baby boomers retire, fewer people will work and contribute to the economy. This could lead to slow economic growth and, eventually, a recession.

A recession is coming in 2023, whether we like it or not.

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