Why is recession a threat to a country?

       Recession is not something we hear about in usual conversations. But whenever it comes up, we know that the situation may not look good.

       In simple terms, recession means a slow down or temporary collapse of business activity. It affects not just individual business ventures, but countries too, very badly. At the end, their economies fall. There are many things that come along with it- unemployment, decline in productivity, change in social lives of people etc.

       Recession at its initial level takes place when supply of something happens to be more than its demand. Let us put it more simply. When an economy expands, businesses too improve. They hire more workers; build more factories, set up costlier machines. But what if the demand for their product is very less? The business ends up in a big loss. Slowly, they close the factory.

           This is what contributes to a bigger danger named recession in a country. Trade markets, agriculture, and all sectors that help a country to get affected with recession. However, the common man is the biggest victim of it all. In just a matter of days, he might lose his job. This affects his family. Recession at its worst leads to economic depression, which is a dead end to the growth of a country.