4 ms·
It's interesting to see the self-reinforcing aspect of this recession/downturn. Many companies have yet to see a material impact to their revenue or market cond
by axg11 4y ago
It's interesting to see the self-reinforcing aspect of this recession/downturn. Many companies have yet to see a material impact to their revenue or market conditions, but are tightening their belts in anticipation. I'm not saying that's a bad thing or the case here. The more a potential recession is discussed, the more fearful companies become, the more conservative they become in their actions and ultimately the recession will be worse due to that. Perhaps the contagion of fear is better in the long term as companies are forced to act more prudently.
- kradeelav 4y agoThis is a little incorrect for some sectors, though for other sectors would absolutely be right. I work in a product oriented company (won't get into details), and because of inflation and other areas of the downturn, raw materials (plastics, circuit boards, wood) got more expensive. We then needed to adjust the final sticker price higher which (understandably) means that some customers at say, Walmart, are less likely to buy the product. It's a very real tight squeeze on both ends for us and also for the customer. This has been going on for a few months now and was a major early indicator (imo) to me that things were going to get grim for a bit.