All over the world, headlines of the newspapers are talking about recession. Recession can be defined as the slowing down of business processes or activities. As a result, it has affected the world’s economy. The prices for goods and services have sky rocketed, companies are doing badly and the stock markets are not doing well. This has been transferred to the lives of people. Many people are struggling to earn a living so that they can survive in this poor economy. Therefore, people have been affected socially and economically thus making the relevant authorities to try to find solutions to solve the problems.
In many people’s discussion, the main topic is what caused the global recession. According to analysis, the American housing project is one of the causes. The government created a good system to lend people with so that they can be able to afford houses and as a result, the rates of inflation went up (BBC.com, 2008). Another cause of the recession is the rise in fuel prices. Almost all the commodities made by different companies must have used fuel either directly or indirectly. 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, 2010). 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, 2010). Additionally, most people who are committing these crimes are doing it for survival to providing food on the table for their families.
In the aim of searching for solutions, most countries are trying to bail out their companies from bankruptcy so that they can be able to survive in the tough times of the economy. The only problem is that taxpayer’s money is being used to correct other people’s mistakes. Another solution to the problem that the government is trying to use is through increasing taxes. This is for the purposes of reducing inflation in the country. This way, the government will be able to collect money in circulation thus reducing recession. As a result, the rate of inflation will be reduced. Lastly, all nations in the world are coming together to help those countries that are mostly affected. This is because it is a global thing and as a global society, we must help one another. Eventually, stability will be restored in every corner of the world.
Global recession is something that cannot be avoided because it has continued to pull the countries down. The society has started becoming chaotic where different social evils are on the rise. The gap between the poor and the rich has continued to increase. However, many countries are trying to make strides to improve this situation. They are bailing out those companies that might be affected by bankruptcy, they have increased taxation and lastly, they have joined hands with other countries to end this. In my opinion, the best method to end global recession is through the uniting of all world nations. This is because there is no way that one nation can survive on its own.