Explain · Like I'm five version
A recession in terms of a soggy bank holiday
A recession is exactly like being stuck at the seaside on a very soggy bank holiday.
When the weather turns grey and everyone gets wet, it is like a recession because people stop spending their coins. You might have planned to buy a big ice cream or ride the carousel, but the rain makes you want to hide your money in your pockets instead. Because everyone else is also hiding their coins in their pockets, the people who sell ice creams do not earn enough money to keep their shops open. It is a bit like when the bouncy castle gets too wet and the man has to pack it away until the sun comes out.
Soon, the whole promenade starts to look empty because all the shops have closed their shutters. The shops cannot pay their workers, so the workers have to go home and wait for better days. It feels very sad when you want to buy a balloon but the shop is locked tight with a rusty padlock. Just like waiting for the clouds to part so we can build sandcastles, we have to wait for the economy to feel happy again before people start buying sweets and toys.
Nobody likes standing in the rain while their chips go soggy and their socks get damp. We all want the sunshine to return so we can run on the beach and buy treats without worrying about the puddles. It is a long, cold wait, but eventually the rain stops and the shops open their doors once more.
Where the analogy breaks downA rainy day lasts for a few hours, but a recession can last for a very long time.