The economy is the primary indicator that tells whether a nation is doing something good or going to collapse. Basically, it is the overall domain in which money, people and infrastructure meet together in order to run the domestic and international correspondences of production, distribution and consumption of products and services. But with the current economic crisis being expensed today, it is sometimes an issue whether there is really something that can be done to avert problems from happening.
According to Martin Feldstein, a Harvard analyst, the economy is currently in recession (IHT, 2007). This is the condition when operations of businesses and trade parameters suddenly decline to work out. At the worst case scenario, economic operations may even halt depending on the factors that contribute to the system. It may be a reckless assertion or a true hidden warning for some but how does one really define an economic recession? In a layman’s perspective, recession can easily be identified by simply observing the current market trends of the nation.
Also, it is a useful aspect to experience the factors first-hand which could lead to an overall consensus of the population that the economy is in crisis. Now, in order to see whether there is a valid assumption that the economy really has a problem; it is worthwhile to enumerate some possible causes of such ideas. The housing and realty sector has already fallen to the deep cracks of recession since early 2007. Many of the homeowners are no longer able to pay for their mortgages resulting to bad debts and liquidated assets.
This scenario essentially started when the sub prime mortgage crisis broke out. An additional dilemma being faced by the bigger sectors of the economy is the financial bankruptcy of major and heavyweight companies. Businesses like Enron, Lehman Brothers, Merrill Lynch and other vulnerable sectors involved in their operations have already filed bankruptcy. With the recent enacted bailout plan of the US government to save these companies, it is very obvious that a big part, if not the whole, of the economy is collapsing.
Everything that one can hear about from the news is nothing compared to personal experiences. One very good indicator of an economy in crisis can be seen on how ordinary people adjust and react to the current economic situations. Many people are now having a hard time looking for a job due to business operations downturn. Some companies have already outsourced their operations to other countries resulting to a decrease in quality job markets. Also, more and more people are having a hard time paying for their debts and credit cards which probably resulted to poor working opportunities and conditions.
Today, middle class families are becoming more and more eager to be satisfied with sub-standard products and services just to make ends meet. They are now more eager to buy commodities with very large discounts sacrificing the aspect of quality and value. Now the big question is, “Is there anything that can be done to at least move forward? ” First of all, the government can initiate a sort of “safety net” plan that can at least save an economic institution and prevent it from dragging other sectors.
On the other hand, companies may create a protocol that will enable them to disseminate information about their status to sectors that could help them prevent any future losses from happening. Finally, the general population should at least find more and more alternatives to support their lifestyles and daily expenses. Living only within their financial capacity will definitely make things a little better for them to survive any economic crises. References IHT, (2007). Is the US economy in recession?. Retrieved October 22, 2008, from International Herald Tribune Web site: http://www. iht. com/articles/2007/12/16/opinion/edeconomy. php