Federal Reserve policymakers slashed key interest rates last month to fight a widening credit and housing slump. Stocks are falling. 232,000 jobs were lost in three months. Sounds like that recession part of the cycle we learned about in class. Even Bernanke, the Chairman of the Federal Reserve, finally acknowledged the possibility of a recession.
Jon Co had a similar post last week about a recession, but my question isn't whether or not we're headed for a recession, but what's going to happen to us, meaning students, once the economy starts falling more. We're going to college and/or joining the workforce soon, so what effect would a recession have on us for the next couple months or years? I think we'll be fine, since our needs are pretty basic. What do you think of all this?
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19 comments:
Let me just say, First comment once again... Anyway to get this started, I think that while in college, the recession wouldn't have too much of an impact on us until something like inflation increases our tuition money, making it more expensive for us to pay for college. I think that if the people who take a part time job in college would be "okay" because their job is only part time. However, if this recession lasts long enough for it to affect our career and / or job opportunities, then I think we're in some hot water...
I disagree with Allan here, this recession will have a greater effect on students than most people think. Because of the current recession that we're facing, it will be even harder for students to get any student loans because of the credit crisis that the government is facing. This is a big deal for many of us because we are going to college next year, and without loans, some of us may not be able to afford the tuition.
Hello Mr. Tao!
We meet again. First of all, I would have to agree with what Mr. Tao has mentioned. I also believe that the recession would not affect us, the incoming college students that much. We personally would not care or notice the recession will be occurring in the future. It is because college students will be in colleges, studying and not notice the outside world as much as those who are actually employed. However, if colleges have to raise their tuitions because of the recession, then the college students will definitely be impacted.
I believe that we are already in a recession, ever since people have been started getting laid off from their jobs. I know that according to the textbook, recession is the decline of GDP for 2+ quarters, but there is a popular saying that goes something like this: "there's a recession when you're laid off." Not sure if that's right or not but yeah.
i don't think this recession will affect us unless our tuition goes up or if it hurts our parents' jobs.
ALLEN KIM!!!!!!!!!!!!!!!!!!!!!!!!!! I don't agree with your point of view at all. You're basically suggesting that we, as college students wouldn't realize anything else that goes on in the world, but I greatly disagree with that. We would feel the impact of the recession very greatly, besides not getting student loans, we would still have to live in the real world, and we'll see the housing market dropping, and we'll also see how ridiculous gas prices are..$75 dollars for 3/4 of a tank of gas..RIDICULOUS.
Well, for most of us in particular, the recession will probably have little to no effect, but students that are especially hard pressed for money for college may have to make some extra cutbacks. I can't really imagine colleges raising their tuitions significantly in the middle of a term, so I don't see that as too much of a problem. On the other hand, if there really is a serious recession getting a part time job may be a little more difficult as fewer businesses are hiring.
Mr. Look
We wouldn't really know about the real world because we'll be too busy STUDYING like good bois and gals. I have to admit, you are right about the student loan part. We, who will become first year college students in the fall, cannot drive as freshmen unless you commute from your home, so I don't think college students would notice the high gas price, but just knowing that it is high from the news.
Clinton, you bring up a good point that college students are affected by recession in the way that they won't be able to pay. However, there are always alternative (and cheaper) ways of going to college. Also, If one would really like to go to their "dream" college, then one would have to be well determined to pay back all of the money that its cost to go there in the near future, where the economy will hopefully be better off.
We may not be able to drive Allen Kim, but we wouldn't be living in caves, we would be going out and buying things here and there. And what about the many students who will go to CSM, they have to commute to school everyday, won't they notice the gas prices?
Mr. Look.. you're right, we won't be living in caves, we will be living in dorms. As far as I know, these students will have to take the bus or get rides from their older friends since they cannot drive. And for those who commute from their homes, they will face the horrors of high gas prices if they drive. These students do have alternative methods of transportations which include walking, biking, and taking a mass public transportation. These three ways will not only save costs, they will also save the environment (YAY APES and jason bade's wonderful presentation).
Hmmm, I'm starting to think that we're getting recession and inflation heavily mixed up (and part of that is my fault, I admit it). I think that the recession wouldn't affect us as immediately as college students, since we will be focusing on our studies. The recession could be fatal to those of us who plan on seeking a job first instead of attending college. Inflation, however, which can be seen as an indicator of a heavy recession, would affect us a great deal as it would increase gas prices and the prices of our consumer goods.
APES was a great class, I must say. I am guilty of confusing the recession with inflation. Thank you very much Mr. Tao for clarifying it for me. I always knew you were the better half of A^2
Why thank you Mr. Look... no comment.
I really don't think we'll be heavily effected as college students. We get a relatively sheltered life in most cases. Dorms and food are provided, so we have all the necessities covered. The problem would be if the recession continued or started again after we finish college, or if anyone is deciding to skip college and immediately join the workforce after high school. When we're actually working (not just part time), then our wages and buying power will probably be hurt by a recession.
Clinton Look, you have spelled "half" wrong. But I think we have to thank Mr. Ngai for another terrific post. Not only did he tell us about the recession crisis that has been one of the biggest news currently, he connected it to us, the students. This way, he made it more meaningful and actually made us interested to post! Thanks again, Matt!
I don't think high gas prices really have much to do with a recession in our economy. Likewise, unless you plan to enter the full-time work force or buy a house soon, this recession will not affect our lives much. I don't fully understand all the causes and results of a recession but I think that there is no point in losing sleep over it because the fact is that if in fact the stuff we learn in econ class is true, then the market is cyclical and this stagnation must run its course. Students will have to tough it out and might even benefit because the Fed will keep lowering interest rates.
I'm sorry.. Clinton did not misspell "half." I guess I truly am the worse half of the A^2.
The cycle is cyclic, like we learned in class. What goes up must come down, and what comes down must come up - usually. I think what we're headed for is a recession, but we will get out of it in time, whether it be 5 years or 10 years. But I think as college students, the recession will affect our parents and their ability to help us pay for tuition, etc, but once we get out of college in 4 years or more, hopefully the recession will be over. And, depending on who our president is, we might still/not be in Iraq. If we get out of Iraq, the gov will have more money to spend for programs and more jobs, which might help ease the recession. But, if not, I think we're going to be in the same spot in 4ish years. But yeah, as Tao says, if this recession lasts longer, than we're in for a long road...I think it's the fed gov's turn to help decide how to get our country out of the ditch.
I don't think that the recession is going to hurt us as college students. It might hurt our parents pockets though. I think if the economy is still bad in a couple years colleges will begin to raise prices noticeably. However, since this recession has caused thousands of people to their jobs and homes it is going to be harder for us to find jobs and good quality homes after we finish school.
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