How would a recession impact Florida? Here's your answer

Matt Lillywhite

It's no secret that Florida has one of the largest economies in the entire country. And with several economists predicting a recession soon, many people are wondering what will happen to the state of Florida during an economic downturn.

What Is A Recession?

According to Investopedia, "a recession is typically recognized as two consecutive quarters of economic decline, as reflected by GDP in conjunction with monthly indicators such as a rise in unemployment."

In simple terms, a recession happens when the GDP of an economy goes down instead of up for several quarters. And sadly, recessions often lead to job losses, higher levels of unemployment, and a difficult labor market. Quoting an article published by Forbes:

"Rapidly rising unemployment is another driver of a recession. As more people lose their jobs and business conditions deteriorate, those who find themselves in between roles will find it harder and take longer to procure a new role."

Why Do Some People Believe A Recession Will Happen Soon?

A lot of warning lights are blinking red.

According to The Guardian, "New home construction slowed in April. Mortgage demand continues to decline. Some of the country's largest and most influential retailers are reporting disappointing sales and profits. The stock market is in bear territory. Futures markets are signaling trouble ahead."

Some of the world's biggest economic experts are justifiably concerned about a recession. Jamie Dimon, CEO of JPMorgan, sees an economic hurricane on the horizon, per NPR. "That hurricane is right out there, down the road, coming our way." He continued to say, "You better brace yourself!"

It's also worth mentioning that Billionaire and Tesla CEO Elon Musk recently said that a recession in the United States is "inevitable," according to Forbes.

What's Likely To Happen In Florida During A Recession?

Families living in major population centers (such as Miami, Orlando, and Tampa) are likely to be hit hard by job losses that will inevitably occur if a recession hits the United States. However, Florida Governor Ron DeSantis believes the state is prepared to deal with the fallout of a potential economic downturn.

"We're built for the long haul," said DeSantis. "We have no income tax, very low tax burden. There's nothing in the foreseeable future that would change that trajectory. It's important that we govern that way because I think it's very likely that Biden is going to plunge this country into a recession."

What do you think about a potential recession in Florida? Leave a comment with your thoughts. And if you think more people should read this article, share it on social media.

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