A number of prominent economists have kicked off 2023 with some bad news.
It looks like we're headed for a major global recession.
That may not be very surprising. After all, almost 60% of Americans thought our economy had already fallen into recession over the summer.
But, as MSNBC's Market Insider noted at the end of 2022,
Economists have been forecasting a recession for months now, and most see it starting early next year. Whether it’s deep or shallow, long or short, is up for debate, but the idea that the economy is going into a period of contraction is pretty much the consensus view among economists.
Unfortunately, the first week of 2023 did nothing to refute that dire take. Instead, we were treated to a slew of headlines from other major media outlets confirming it:
Big Banks Predict Recession in 2023—Wall Street Journal
World Bank to Warn of Global Recession Risk in Economic Outlook—Bloomberg News
US Recession Alarm Bells Ringing Far & Wide—Asian Times
Why a global recession is inevitable in 2023—The Economist
A warning sign has been flashing red—USA Today
Economic downturns are inevitable
Of course, all that doom and gloom might turn out to be unjustified.
After all, Scottish historian Thomas Carlyle famously dubbed economics "the dismal science" two centuries ago because of its disciples' tendency to predict disaster. And there's a good reason Carlyle's nickname has stuck.
But, regardless, a recession at some point in the future is still 100% certain.
The economy, like life in general, has its ups and downs—and every once and a while we get dealt a major down.
That doesn’t mean we should be complacent. On the contrary, knowing something is coming is more reason to be prepared.
And one of the easiest ways to create a haven of stability during troubled economic times is to take advantage of the energy independence provided by solar power.
Taking care of essentials
There are a lot of things you can forego during an economic downturn. But, electricity isn’t one of them.
Nowadays it ranks up there with food, clothing, and shelter as the fourth necessity of life.
Apart from noticing perpetually rising prices, most of us probably don’t give much thought to the electricity that powers our homes. But there's a simple reason rates are always rising. When you buy electricity from a utility company, you’re essentially paying them to burn fossil fuels.
Around 40% of the nation’s power supply comes from burning natural gas, with other fossil fuels accounting for another 20%.
And, of course, one major factor driving the economy into recession is soaring fossil fuel prices.
As a result, electric rates are skyrocketing across the country.
Soaring Energy Prices
Take Pennsylvania Light & Power's 2.5 million customers.
They got hit with an 18% rate increase in December. And that's on top of a 26% increase last December and then ANOTHER 38% rate hike in June.
So, this month's 18% hike means that -- in just the last year -- folks who still rely on PPL for their power have seen their costs more than double.
The war in Ukraine is one major factor driving up electricity prices. And, unfortunately, as the Wall Street Journal has noted, that means rates are likely to keep soaring.
During a recession, many will find they have less money to spend as they watch their electric bills climb even higher.
But homeowners who had the foresight to lock in a low electric rate by going solar won’t be among them.
Peace of mind
Imagine it’s 1992 when a gallon of gas went for $1.13.
Suppose your local gas station had offered to let you prepay for 10,000 gallons at that price back then.
For anyone who drives regularly, it would have been foolish not to take the deal given how much gas prices have skyrocketed since.
When you have a solar system installed, you’re essentially getting the same deal by paying a lump sum upfront for all the electricity it generates throughout its 25-to-30-year lifetime.
And when the next economic downturn does inevitably strike, that means one less thing to worry about.