TEXT
A recession is looming on the horizon.
The largesse of governments during the pandemic combined with the realization that going to work every day was not as essential as it used to be have made people willing to pay any price for things they wanted to buy and unwilling to accept certain types of jobs.
Those created inflation and labor shortages.
To fight inflation Central Banks started to raise interest rates. On the one hand, people are having to pay more for their mortgages and other payments that carry interest, on the other hand, everything is getting more expensive; as consequence, people are starting to spend less.
In anticipation of lower consumer spending, companies are cutting back their advertising budgets. In response, the tech platforms are cutting their spending and starting to lay – off employees.
Those laid-off employees will spend less which will affect retailers and service companies.
Retailers are starting to cut back spending too, because their profit margins are being squeezed by inflation on one front, and consumers are buying less on the other.
Thus a vicious circle has started: Companies are making less money because people are spending less, and people are spending less because companies are laying them off. It is a self-feeding cycle that will only end when people will feel optimistic again. That may happen when interest rates come down, people will have to pay less for their mortgage and have more disposable income for discretionary spending.
RELATED LINKS
EXPRESSIONS
Could turn either way: Could be a win for one party or the other.
Hang on: 1. Cling to the position 2. Wait a short time. 3. Listen attentively
Grind that agenda to a halt: To stop it
Use the veto pen: Use the power to refuse (The US President has the power to refuse a law approved by Congress. Congress can override this power by a majority of 2/3.
GRAMMAR
Noun compounds
Complete the following sentences with a noun compound formed by the two italicized nouns. The compounds consist of one word or two, as shown by the blanks.
Rules: Open, closed, or hyphenated
Examples: A small boat saved his life. It was a lifeboat.
The streetlights were off, but he could see by the light of the moon. The street was lit up by the moonlight.
He raises chickens on his farm. He has a chicken farm.
1. He deposited the mail in the box. He put the letters in the — mailbox –.
2. The man holding the door is the — doorman –.
3. He went into the store to buy some shoes. He went into the — shoestore –.
4. She drank some tea from the cup. She drank from the — teacup –.
5. Just throw any waste paper in this basket. It’s a — wastebasket –.
6. That man has the highest sales record. He’s the best — saleman –. in the
company.
7. Mary bought a shade for the lamp. She bought a — lampshade –.
8. He likes to go sailing in his boat. He has a — sailboat –.
9. Her watch fell off her wrist. She lost her — wristwatch –.
10. This store has a number of different departments. It’s a — department store –.
11. The bells of the church rang out. I heard the — church bells –.–.
12. We need some more wax for this floor. We need some — floor wax –.
13. She was carrying the hat in a box. She was carrying a — hatbox –.
14. He gave her a ring for their engagement. He gave her an — engagement ring –.
15. Does that train carry passengers? Yes, it’s a — passenger train –.
16. I got these books from the library. These are — library books –.
17. Mr. Evans bought a collar for his dog. He bought a — dog collar –.
18. This paper appears in the evening. It’s an — evening paper –.
19. You wear these shoes when you go bowling. These are — bowling shoes —
20. I can’t fasten this button for my collar. Please help with — collar button –.
21. I need a coat to wear in the rain. I’ll have to buy a — raincoat –.
22. Do you have a list of your prices? I’d like to see your — price list –.
SPEAKING PRACTICE
Talk about an election system that you know.