"The Mental Recession."

Recession is a normal part of the business cycle which occurse everywher. the economy rises and then peaks, then it starts to recess and tehn it has a low.
Everyone is so scared because its happenning duriing an election imo. Especially with gas prices and inflation and the war and everything. People are also scared because of whats happenned with some banks lately and we are due for another depression, I believe. But recession is normal so I think people should relax a little.

^ the UK is in a similar state (petrol prices are higher in the UK than they are in the US), and they aren't having an election.

There's nothing relaxing about losing your job coupled with massive interest rates on all those debts you built up during the last boom.

Even if it's a perfectly natural occurence there's not much reason to enjoy the low point of anything. The only benefit of a recession is that it curbs inflation.

well..not enjoy but we have to deal with it. It happens about once every 10 years, people should be prepared to deal with it by now.

Plus, in the US at least, the price of oil does not match the inflation of other products. There's really no reason for it to cost as much as it does.

Inflation is money losing it's value not products becoming more expensive. It's not a case of what you buy is worth more, but your money is worth less. During a boom it's fine, because people's wages increase but it's bad during a recession because wages are decreasing. If inflation's allowed to grow too much then the economy will collapse eventually. See Zimbabwe

The cost of oil is due to supply and demand and various non-economical factors. And in the UK it's because the government taxes petrol at an extortionate 85%.

In the US though, the price of oil doesn't match the supply and demand, and the prices are inflated.

Oil demand is increasing worldwide, the developed west is growing more dependent on oil as are the growing economies of China and India. Supply is falling as oil fields are running out, or at least are perceived to be running out. High demand and low supply equals massive prices.

Ignore my definition of inflation, it turns out I was chatting crap but supply and demand is what should decide price in a perfect market.

I was always better at marketing and motivation than economics and accounts when I did business studies so don't take my word as gospel.

Eponine:

Plus, in the US at least, the price of oil does not match the inflation of other products. There's really no reason for it to cost as much as it does.

the reason is pure politics. The big guys in the government make money off of the oil and gas prices. They're getting richer off of the citizen's financial sufferring.