THE EFFECTS OF THE ECONOMIC RECESSION

Economic recession can be regarded as a considerable decline in the economic activity and the national output lasting more than a few months. When we look at the most common issues on the  agenda, the results of the great recession of 2008-2012 emerge as important  (The effects of the recession that lasted from 2008 to 2012 are still continuing). Despite the governmental measures and attempts to take the sting out of it, the ongoing problems in unemployment, falling average incomes and increased inequality could not be addressed.

One major effect is a rise in  unemployment. As can be known, thanks to economic recession, millions of firms have been obliged to go bankrupt, which has caused all workers to lose their jobs. Moreover, so as to reduce costs, most executives have to cut back on hiring new workers; thus, unemployment often affects businessmen and entrepreneurs Apart from the job market, a host of problems occur  in government policies. Owing to falling tax revenues and rising welfare payments, economic recession has more of a tendency to cause an increase in the budget deficit, and then governmental debt. As a natural result of this economic and political turmoil, not only investment in some sectors but also exports and imports decrease.  

The effects of economic recession are not related only to the government or economy; it leads to an increase in the number of social problems as well. It goes without saying that unemployment is a very stressful process  and it may damage the person’s morale and even health. To illustrate, take a struggling family living through  the economic recession. In terms of the unemployed father, being incapable of either bringing home the bacon  or meeting the basic needs or demands of the family members cause him to be demoralized and feel like a good-for-nothing. On the other hand, other members of the family can accuse him of not providing for them, and some couples  even have an inclination to seek divorce because of  financial problems. Apart from interfamilial problems, high unemployment can be charged with creating social instability including riots. In brief, unemployment stemming from economic recession can  result in both domestic and social problems.

In the light of this evidence, the obvious conclusion to be drawn is that economic recession has a detrimental impact on the number of people who are jobless, government policy and even social instability. Needless to say, instead of temporary solutions to solve this kind of issue, the government, political economists and also people coming from all walks of life  must unite and do their best to eliminate this problem.