The US may be heading towards a recession, and the risks are rising. However, this doesn’t mean a deep economic downturn is inevitable. The markets have already been shaken, and consumer and business confidence have taken a hit. President Trump’s comments about not ruling out a recession and Cabinet members’ talks of a “detox period” have added to the uncertainty.
Research shows that recessions can have devastating consequences for individuals, businesses, and communities. They can last for years, even be irreversible in some cases. Economists warn that lower-income people are hit hardest, with existing disparities widening.
The impact on young workers is particularly severe. Recent graduates and middle-aged workers who enter the labor market during a recession face reduced wages, poorer economic outcomes, social, and health impacts. Even after decades later, they may experience shorter lives, lower marriage rates, higher divorce rates, and fewer children.
Recessions also set back workers’ earning potential for years, as seen in Laura Natale’s story. She defaulted on her student loans due to low wages during the 2008 recession and struggled to recover even after finding a good job nearly two decades later.
Economists argue that austerity measures being proposed by the Trump administration could weaken safety nets and further exacerbate the problem. Cutting government spending could have long-term negative consequences for economic health, making it harder to recover from future downturns.
Source: https://edition.cnn.com/2025/03/21/economy/recession-negative-outcomes-long-lasting/index.html