Recessions do not only affect poor people
Posted by admin on January 7, 2009
Recessions do not only affect poor people. Even (and sometimes especially) the well-off begin to get nervous when the economy takes a dive, prompting them to ensure that their investment portfolios are getting the most bang for their buck in the marketplace.[1]
Recessions not only cull unhealthy companies, they expose financial gimmickry. They punish groundless optimism and the rampant speculation it feeds – in fanciful Internet ventures in the 1990s, for example, or in housing over the past few years.[2]
Economists predict that the recession will continue through at least July 2009 (with recovery effects lasting the rest of the year or longer), making it the longest period of economic downturn since the Great Depression . During the next year, people around the world will continue to suffer the recession’s devastating impacts, and as is often the case, the ones who will suffer most are the ones who can least afford it.[3]
Economists at UBS, for instance, expect global growth of only 2.2% in 2009. [4]
Economists usually teach that to some degree recession is unavoidable, and its causes are not well understood. Consequently, modern government administrations attempt to take steps, also not agreed upon, to soften a recession.[5]
Companies that are in the beginning of the innovation journey need to accelerate capability-development efforts or will find themselves simply unprepared for the fight ahead. Industries that had already been grappling with disruptive threats for years–like newspaper companies–will face intense pain as they struggle to find a safe haven in today’s brutal economic climate.[6]
Companies will have to stay focused on their web sites, social strategies, and eCommerce this time around — or risk losing their next generation of customers. [7]
Government and trade-association data reveal a 10% increase in sales of firearms and ammunition in the months leading up to the election. Obama on his way to the White House and the nation officially in recession, we can only imagine that rifles will top many a holiday wish list.[8]
Governments, both federal and provincial, posted higher deficits because they collected less tax on income and corporate profits but spent more money on programs such as employment insurance benefits. [9]
Reference
[1] http://www.resumebear.com/blog/index.php/2008/12/29/top-50-recession-proof-industries-and-what-makes-them-recession-proof-part-1/
[2] http://www.boston.com/bostonglobe/ideas/articles/2008/03/23/the_good_recession/
[3] http://www.worldchanging.com/archives/009223.html
[4] http://www.economist.com/finance/displaystory.cfm?story_id=12381879
[5] http://en.wikipedia.org/wiki/recession
[6] http://www.psfk.com/2008/12/more-on-recession-or-reorder.html
[7] http://blogs.forrester.com/colony/2008/10/my-take-on-the.html
[8] http://adage.com/article?article_id=133241
[9] http://www.canadianeconomy.gc.ca/english/economy/recession.html
