Might families be unable to either borrow or save enough in advance to avoid serious hardship during a contraction?

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With the advantage of hindsight, economists know that all contractions end, and most end fairly quickly. It is thus all too easy to downplay the effects of cycles. Families may be unable to either borrow or save enough in advance to avoid serious hardship during a contraction, and fears of a future recession may cause families to forgo investments in houses and cars. Moreover, individuals who come of age during a serious recession may find their entire lives affected, as during the next expansion prospective employers may eschew those who have been long unemployed.