Leadership

Recessions are Self-Fulfilling Prophecies

If you convince yourself a recession is eminent, you are prudent to cut back on spending and increase savings.

On a broad scale, such shifts in spendings slow the economy around you.

Such shifts cause others (producers, manufacturers, creators, operators, etc) to slow their own spending, leading to a wide-spread spending freeze and recession.

The funny thing about recessions being self-fulfilling prophecies is that economic booms are, too.