I believe that already at this time for all people in all parts of the world, there is no doubt that we are going through a health crisis, caused by the pandemic of the civil19, whether it is induced by global interests or by other means, however this 2020 is not only the year of the crisis, but the year of the crises, because once this first crisis is over, a second one comes around the corner, another that could be even more deadly than the first one that haunts us.

Is that according to the international monetary fund, the coronavirus will cause the worst economic recession since the great depression, and without being too pessimistic, this 2020 will be the year of two crises, one in health and the other in the economy, at least for the first there will be a vaccine but for the second; Well for now we could already get to know the key concept which, in some countries it might be the daily bread, although in others it would be The Recession, what is it, how does it affect us because it could be more deadly than covid19.

The Recession comes from the Latin recession, which means to go back or to return, however, we use this word very little to refer to a real action and rather we have reserved it for the exclusive use of the economy, so it almost always does not sound a very complex concept or very solvent but this word has nothing to do with the other world is that in fact we understand that it has to do with stopping and going backwards, in that sense I think we can already understand the second definition of the dictionary of the Spanish language recession "Depression of activities economic activities in general that tends to be temporary ”with which we can understand a recession as a collapse in economic activities within a period, that is, a moment in which the supply of goods and services decreases, thus lowering competitiveness and prices rise which brings a series of direct consequences that is the visible face of a recession and those consequences are therefore due to the drop in the supply of goods s and services, business closures reducing staff and unemployment.

Faced with the decline in competitiveness, we have the consolidation of monopolies and with this we also have a decrease in the quality of the goods and services available and also an increase in their cost and finally before the rise in prices, we have the depreciation of the local currency and inflation. Reason why we have a recession as a general decrease in economic activity which affects us all and not only has to do with money but also with our quality of life, that is, when the supply of goods and services decreases What we are saying directly is that now there is less food to consume and what was available will be more expensive than before, with which it can also be said that medicines will be more scarce and also health access more scarce and that there is less possibility of starting your own business because it will cost you more, firstly because it will have less income than in other times because people will take better care of their money and secondly because your initial investment is going away to depreciate with inflation and with the lack of availability of demand, which is why now we have to refer to what is usually cited as the first concept of recession, which was coined by the national laburo US Economic Research Final

The Nber according to its acronym in English and the concept read like this: “Recession is a significant decline in economic activity that spans the entire economy as a whole, lasting more than a few months and is normally visible in gross domestic product. real, real income, employment, industrial production and in retail and wholesale sales "

Now what has to happen for a recession to occur and when you can talk about it, well historically this has always been a mystery and today it is still not entirely clear to us, which does not mean that there have been no explanations, for For example, many classical economists denied the existence of these periods of pressure, arguing that highs and lows are part of normality.

In 1819, Jean-Charles Leonard Sismondi identified that the economy moved through economic cycles marked by overproduction and low consumption, which were generated in turn by the inequality of wealth, this concept later became part of the Marxist economy , which said that these cycles are not only due to errors or poor distribution of wealth but is an essential part of capitalism because all economic activities within capitalism are aimed at accumulating wealth instead of the good of society, which is why which at some point the social needs are going to be recorded in such a way that they will generate a periodic crisis.

In the next post I will find out more about it and how we can deal with cryptocurrencies with our friends.