With an increasing number of economists using the term “recession” and “U.S. economy” in the same sentence, the term “recession proof” is also popping up more frequently, too.

According to a recent article in the Wall Street Journal by Cynthia Crossen, people are debating whether or not Google, Starbucks, lingerie, professional wrestling and teenagers are recession proof. In the past, according to the article, businesses claiming to be immune from major economic downturns included weddings and honeymoons, pipe organs, bubble gum, power tools, Tupperware, chocolate truffles and fitness centers — to name just a few.

Some industries such as food, tobacco and health care have weathered recessions better than most. Goldfish and beer sales are also less affected by recessions, since the former are usually owned by people with above-average incomes and in the case of the latter, a couple of beers helps to brighten an otherwise gloomy economic situation even for those without a job.

Among U.S. cities, Dallas, Long Island and Palm Beach have touted their economic resilience, along with the states of Texas and California.

Closer to home, a number of economic seers have claimed that Canada’s burgeoning resource sector has made the country’s economy recession proof. They also point to the fact that Canada was able to skate around the outside of the crater created by the explosion of the U.S. tech bubble in 2000-2001.

However, in a recent article, David Rosenberg, chief North American economist at Merrill Lynch, states that the current U.S. downturn appears to have a lot in common with the 1973-1975 recession that lasted for 16 months.

In Rosenberg’s view, the “four horsemen” — rising energy costs, declining employment, collapsing house prices and a very high debt burden — could keep consumer spending (the largest component of U.S. domestic demand) in the doldrums for many months.

If this happens, Canada’s ability to avoid a recession is likely to be severely tested. One strategy which has been valuable in the past is to “hope for the best and prepare for the worst.”

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