All this has emanated from the US trickling down to the other countries; thus, becoming a global issue. Therefore, the rise of fuel and housing projects made the cost of the different commodities to rise resulting to the recession.
This recession has affected the social lives of people. It has led to the creation of social classes among the people in a society. This is where the rich people continue to be rich while the poor people continue to be poorer. The poor people, being the majority, might lose their jobs since the companies are not performing well while the management of the company, the rich, increase the prices of the products they are offering resulting to profits.
These profits go directly into their pockets. This means that the rich will not be affected in any way while the poor will suffer in poverty. This gap separates the two groups creating a distinct social class. Recession has also created social evils in the community. This is because of the increased rate of unemployment. Many people have to find means of survival Bloomberg news, For instance, a parent has to find something to feed his or her children.
In order to do this, he or she ends up engaging in social evils like prostitution and robbery. In America, the rate of crime has increased significantly due to recession. Statistics indicate that prostitution is on the rise together with the black market Masko, Additionally, most people who are committing these crimes are doing it for survival to providing food on the table for their families.
Holders of other shares is thinking in the same way that leads to the decline in stock indices that characterizes the average price of traded shares. Such kind of scenario one can see in the world economy. Loans are becoming more accessible with the lowering of rates, and it creates a hope that more people and businesses put money into the economy.
Stock exchanges around the world reacted to the decline in rates, but not very strongly. How events will develop further? Frankly speaking, it is unknown, because the future depends on many factors, each of which is difficult to predict. Low interest rate is a cut both ways. Normally, recession comes first, setting off credit troubles in its wake. We have a housing recession, an auto recession, a manufacturing recession, and a real investment recession already present. Today, the whole world keeps an eye on situation in the country with the most advanced economy.
Moreover, in many cases mass media as well as statements of politicians and experts stir up the situation. Now the pace of world economic growth has slowed. However, if the market shows slowing of the economy that does not mean that it must transfer the global GDP growth in the negative zone.
The decline in GDP growth over two quarters is a major sign of recession. Recessions of previous years with the exception of the Great Depression were quite soft, and the economy since those times are progressively developed and civilization gained experience, studying on their own mistakes.
Today we can say that the financial crisis, if not defeated, then its effect is largely mitigated. Example Essay on Effects of Recession on Students: College life has many challenges that lead to a combination of problems that are propelled by inefficiency in service delivery as well as incompetence.
These can be dealt with all the same if proper procedures are taken by relevant stakeholders. As inevitable the recession might seem to be to the economic life of the world, its effects have proved to be more widespread and devastating than we can imagine them to be.
Imagine waking up to find firms and industries downsizing their workforce, prices of basic commodities rising by the minute, cost of healthcare being far from affordable, crime rate and insecurity being the only topic of the day due to super high cost of living, and as if not enough, the most important sector of civilization, education becoming so expensive beyond the reach of the modern day small family that tags its future on the little kids dressed in their school uniform hoping that one day they will finish school and get employed with a decent income to bring back home.
These forces youth to resort to crude money making methods like selling drugs, prostitution and theft. The Recession is the period when the economic output is decreasing instead of increasing thus having the effect of reducing tax revenues to the government. This Forces the Government to dig deeper into reserves and external borrowing to suffice its expenditure, thus plunging the economy into debts, causing effects such as inflation.
Inflation directly boils down to the individual citizen who has to spend more on goods and services as the cost of living escalates. Crime rate has been increasing as a result of the high cost of living brought about by recession.
This is as a result of many students resorting to theft and fraud in order to get an extra dollar for their upkeep and tuition fees. This will lead to student living with fear as their property is always at risk of loss and they are afraid of being harmed due to the violence that is associated with stealing. The rise in crime rates will affects the concentration of students as they cannot fully concentrate on their studies because of concern on the security of their property.
Crime rate also brings about insecurity around the campus since the affinity of students to steal has risen. This creates an in conducive environment for studying and thus the students grades will drop significantly.
Free economic recession papers, essays, and research papers.
Introduction Recession can be defined as significant decline in general economic activity extending over the period of time.
Research paper on effects of recession on consumer buying behavior. Example Essay on Effects of Recession on Students: (College life has many challenges that lead to a combination of problems that are propelled by inefficiency.
Free Essays from Bartleby | Introduction Greece’s unemployment rate has hit another highest record in May , which is %. Greece continues to suffer. Recession essay deals with he melting down of the economy which started in the US and gradually spreading to the whole world and the whole world experiencing a severe credit crunch. Recession essay defines recession as the decline in GDP which is Gross Domestic Product of any country for two quarters- it is the value.