If you’ve ever watched any of the late-night television shows, they would sometimes feature street interviews with everyday people asking them to name ten U.S. Presidents or perhaps to sing the National Anthem, etc. It was often funny but also a bit disturbing that the highlight reel was full of people who couldn’t answer most of the baseline questions. And while the silly answers may very well have been to boost ratings, I think if the questions were posed about inflation, raw goods, economic growth, and downturn, most people would attempt to answer but soon realize that it all seems complicated and confusing. I’d be in that boat when it comes to the economy.
How Your Church Can Best Serve Your Community During An Economic Downturn jumped to the top of my quest to help me get a better understanding – in layman’s terms – of the economic downturn, what it means for me, and how it impacts my church- which may have also suffered from the summer slump – and our community. In a previous blog, a video was shared that educated me, and I decided to use it as a teaching tool during our recent family night. Understanding the economy and the terms around it helps paint a picture of how we function as a society. Let’s dive in with a few and then look at how the church can help:
WHAT IS INFLATION?
A decrease in the purchasing power of money due to a general increase in the prices of goods and services.
Who is impacted?
- Low-income households
- Elderly households
- Retired households
- Single mother households
- Lenders
WHAT IS A BEAR MARKET?
When the stock market (S&P 500) experiences a decline of 20% or more from its high.
Who is impacted?
- Those living off retirement income are forced to withdraw funds while the market is at a low point
- Those unable to contribute to the market while it is at its low point
WHAT IS A RECESSION?
Is generally defined as when a nation experiences a decrease in Gross Domestic Product (GDP) for 2 consecutive quarters.
Note about GDP from IMF: GDP measures the monetary value of final goods and services—that is, those that are bought by the final user—produced in a country in a given period of time (say a quarter or a year). It has become widely used as a reference point for the health of national and global economies. When GDP is growing, especially if inflation is not a problem, workers and businesses are generally better off than when it is not.
Who is impacted?
- Households who have become unemployed
- Lower-income households
- Retirement households
- Elderly Households
- Single mother households
- Homeowners
HOW CAN THE CHURCH HELP?
- Physical resources- Providing financial assistance to help cover rent, utility bills, food, motels, etc.
- Connections- Hosting job fairs on-site is a great way to both serve those who are under/unemployed in your community and bring new people to your campus: such a practical community outreach idea for churches! Education- Biblical finance classes are typically in high demand and can introduce people to your church while helping them create a sustainable financial plan.
- Counseling- Households who are most impacted by economic downturns typically will experience personal and marital stress.
Church technology has ramped up to include ways to find and serve those impacted most in your community. In part three of this blog series, we’ll share an analytics tool for churches. This will be vital in our strategy to reach our community, including opportunity scans and mosaics. Mother Teresa is quoted as saying, “Love is a fruit in season at all times and within reach of every hand.” Let’s discover, know and love the people in our immediate mission field.
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In this guide, How Your Church Can Best Serve Your Community During An Economic Downturn, we define what inflation, bear markets, and recessions are. Along with who they impact and what the church can do to best serve those impacted most. We also look at unique ways to utilize MissionInsite to find and reach those in the community. Especially around your church who are impacted most during economic downturns. And, to make it even easier, so you don’t miss any of our insightful Church Growth Resources, you can also receive our ministry blog posts straight to your inbox!
Learn to Help Your Neighbors Better During an Economic Downturn
In How Your Church Can Best Serve Your Community During an Economic Downturn, you’ll discover:
- What do terms like inflation, bear market, and recession mean, and why do they matter for your church?
- Easy strategies your church can put in place quickly to help struggling neighbors.
- Step-by-step instructions about using MissionInsite to find and serve those in your community most harmed by economic downturns.
David joined ACS Technologies in September of 2021 as the Director of Financial Planning and Analysis. He has over 15 years of experience in finance and equity research, financial planning, corporate development, and strategy to drive growth and efficiency. He previously worked for HighRadius, Bristow Group, Clarksons, and CGGVeritas. David enjoys time with his family and participates in various roles at his church.
