Dr. George at Work

Published 12:00 am Saturday, February 27, 2010

Q: Are their any good sides to a recession? — Discouraged

A: An economy that goes full speed ahead, without stopping or a correction, will eventually experience both. Though this is painful, there are some good sides we don’t really discuss.

From a business standpoint, a recession tends to bring the price of goods and inflation down, as there are fewer dollars chasing products and services. The opposite effect causes inflation. Also, the government drops interest rates to stimulate borrowing by consumers. Those who need to refinance their homes can benefit.

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From a real estate standpoint, one of the best time to invest in property is during a recession, where many deals can be found. During the Great Depression, millions of dollars were made by people who had the cash to buy property at low prices.

Also, a recession forces people who have always wanted to become entrepreneurs to start their own ventures. From a cultural standpoint, a recession forces individuals and families to examine their priorities. Finally, once the economy returns to normal, people are much more cautious about debt creation.

History has shown we should learn from adversity. Sometimes pain is just the stimulus needed to think creatively and bond together.

Dr. George R. Abraham is a native of Vicksburg and a former longtime educator, business manager and consultant. He is an author who contributes weekly to The Vicksburg Post and hosts “The Dr. George Show” on 1490 AM at the Klondyke in Vicksburg from 9 until 10 a.m. each Tuesday. He can be reached at georgerabraham@