Now it's the time to unleash yourself and dive in to what we call Internet business world, where things happens through mouse clicks and key strokes! If you are aspiring to mark an online presence with your services and products, you need to plan for a new website.You are not alone if you have such a noble plan... you are rather following trillions of people standing ahead of you in a long queue. Competition is soaring high! Make haste; don't make mess in haste. Plan your new website scientifically. Proper planning is the key to success story.
Plan the type of site you need.
No point building up a web site that won't cater to your need. Sit back on your couch and spare a thought on why you are going to create a website. This will give you an idea about the kind of website you should be coming up with. Pounce on to the web and look for relevant business sites, what people around you are doing and what people are emphasizing on. Remember, as success doesn't come overnight, successful Internet business site do not happen within a day! A business that runs a highly potent website today, had to play years of careful role to materialize their plans regarding website's content and designs yesterday. Planning your website involves knowing fully what you want to achieve from your website, who are your targeted audience and how should you assess your website's performance. A sequence of careful planning ensures a success in your inline business.
Read out some very common mistakes that are committed by most website owners. Steer clear of these mistakes and you can mark an online presence with your brand.
Many website owners seem to mess with the purpose of their websites: Let me not hide and seek; let me be very candid. Many website owners do not understand what exactly they want their long awaited website to achieve. First off, decide what you want your new website to achieve. This involves analyzing your business more closely. Make a note that clearly defines the salient aim of your website.
Many website owners seem to mess with the audience their website should target: Once you are done with the first step, think on who your website is actually for. If you are a sports shoe maker, no point making your site target the cell phone crazy mob. If your website focuses on building up prospective customer base. it's not the end of the story. Your website should transform the prospective customer into potential customer and then into your client, which means repeated purchaser i.e. repeated visitor. So making your website smart for generating initial interest is not just enough. Your site should target people who will like to drop in to your site over and over again.
Many website owners seem to mess with proper promotion: Search Engine Optimization (SEO), search engine advertising and online promotion of the site is what most of the website owners seem to overlook. This is where these website owners lack behind the others who have already marked a good presence on Internet. By marketing your website you can generate a consistent and reliable inflow of visitors which is again key to your success story.
Many website owners do not emphasize on their website’s content: Your website's content is the nutrition of the website. Keeping it fresh, crisp and interesting will make your visitors come over your website repeatedly, and that's where the magic lies. The top websites in the industry do not allowed to fade away their online presence. Letting people know about your new offers, new additions and a new twist in your business is highly essential. Adding fresh content to your web pages is the most potent ways to make things happen with flick of fingers.
Many website owners do not scale their website's success: Analysis of website's statistics is how you can measure the website's success, which most site owners tend to overlook. Investment of both time and money is essentially required to expect a ROI - Return On Investment. Remember things don't work like magic. Different search engines have their unique algorithms based on which they work in different modes. It takes time for your website to achieve what you want your site to achieve.
All you need to do is to create your online visitor base at the first hand and then keep them informed about your business every moment. Planning your new website involves analysis your own business first and then call a web designer. A web designer will help to design your website according to your plan. Avoid these few common mistakes that most website owners make. Remember launching your website is only your first step and not the end of the story.
Monday, March 9, 2009
Saturday, March 7, 2009
Stress: The Most Happening Health Problem Today
If you feel a disconnection from what and where you actually are, if you tend to be forgetting your breath, you are in Stress. Fact is that you are not alone. Stress has more or less captivated almost 100% of world’s population and has been paralyzing the Americans men and women at a colossal pace. As one of the major reasons that reshape the human brain, stress has emerged to be a curse in the US today. Nerve-wrecking work pressure and tendency of the generation to join the rat’s race are the major causes for stress. Young adults in the US have been reported gripped in pronged pressure of stress that causes brain cells to shrink or grow beyond the desirable limit.
Reports shows that stress level is soaring high in children and teenagers too! Lack of social support, frequent failures in dealing with critical situations and unusual corporate pressure define the major reasons behind stress. Strain, on the other level, has become more invasive along side stress and is a psychological threat for the modern generation.
Cause of Stress: The “flight or fight” syndrome has marked a major difference in lifestyle! Competitions, failures and successes in today’s progressive and highly dynamic world is all time high. The business climate is getting worse with competition edging towards the peak. The polluted environment at work directly influences the stress level of the Employees. The wanton pressure thrown on employees, the continuous apprehension about job security and sleeplessness are the major causes of loads of health issues that keep victims awake at the wee hours of night. Back ache, neck pain, hypertension, fluctuating BP, diabetes, gastroenteritis and in worst cases strokes, ulcers and heart attacks are the bottom line of the stress story.
Other reasons that cause stress include eying a computer for as long as six hours continuously every day, chasing targets or somebody continually monitoring you.
Effect of Stress: To brief, stress results loss. Loss of health implies loss of everything, and stress ends up with nothingness. Stress breeds mental disorders, throwing the smooth lifestyle off the track. Increase in heart rate, fluctuating BP – usually high, disruption of the electrolytic balance in blood, insomnia, narcolepsy, and defunct internal organs are some ill effects of stress that affects the immune system adversely. It has been surveyed that 50% percent of Americans have complexity while sleeping. Chronic depression, anxiety, psychological illnesses are the vinegary reward of stress for present generation.
Viewing from an entirely different perspective, unswerving stress affects the country’s growth, by the way of diminishing per-capita productivity not only in a man’s social aspect but professional aspect as well. With diminishing marginal utility of a stressed out labor, the country’s economy is rudely on the wane.
Measures to control Stress: With situation so grave all around, the most precious gift that you can present yourself is to take measures to control stress in your life. A few simple alterations in your lifestyle can fetch you the much needed difference in your life. Scoop an hour or so out of your bustling schedule for a stroll amidst the morning mist will lower your stress level. Listen to whatever genre of tunes you like… preferably the classics like Bach, Beethoven and Mozart! Spend times with your beloved, friends and folks. Yoga and meditation may seem to be boring all the way, but are the most potent methods of stress management. Modern psychiatrists prescribe to visit aquariums.
Reports shows that stress level is soaring high in children and teenagers too! Lack of social support, frequent failures in dealing with critical situations and unusual corporate pressure define the major reasons behind stress. Strain, on the other level, has become more invasive along side stress and is a psychological threat for the modern generation.
Cause of Stress: The “flight or fight” syndrome has marked a major difference in lifestyle! Competitions, failures and successes in today’s progressive and highly dynamic world is all time high. The business climate is getting worse with competition edging towards the peak. The polluted environment at work directly influences the stress level of the Employees. The wanton pressure thrown on employees, the continuous apprehension about job security and sleeplessness are the major causes of loads of health issues that keep victims awake at the wee hours of night. Back ache, neck pain, hypertension, fluctuating BP, diabetes, gastroenteritis and in worst cases strokes, ulcers and heart attacks are the bottom line of the stress story.
Other reasons that cause stress include eying a computer for as long as six hours continuously every day, chasing targets or somebody continually monitoring you.
Effect of Stress: To brief, stress results loss. Loss of health implies loss of everything, and stress ends up with nothingness. Stress breeds mental disorders, throwing the smooth lifestyle off the track. Increase in heart rate, fluctuating BP – usually high, disruption of the electrolytic balance in blood, insomnia, narcolepsy, and defunct internal organs are some ill effects of stress that affects the immune system adversely. It has been surveyed that 50% percent of Americans have complexity while sleeping. Chronic depression, anxiety, psychological illnesses are the vinegary reward of stress for present generation.
Viewing from an entirely different perspective, unswerving stress affects the country’s growth, by the way of diminishing per-capita productivity not only in a man’s social aspect but professional aspect as well. With diminishing marginal utility of a stressed out labor, the country’s economy is rudely on the wane.
Measures to control Stress: With situation so grave all around, the most precious gift that you can present yourself is to take measures to control stress in your life. A few simple alterations in your lifestyle can fetch you the much needed difference in your life. Scoop an hour or so out of your bustling schedule for a stroll amidst the morning mist will lower your stress level. Listen to whatever genre of tunes you like… preferably the classics like Bach, Beethoven and Mozart! Spend times with your beloved, friends and folks. Yoga and meditation may seem to be boring all the way, but are the most potent methods of stress management. Modern psychiatrists prescribe to visit aquariums.
Tuesday, March 3, 2009
The Top 10 Recession Proof Jobs
With the "Recession Virus" affecting the global business activity, people are becoming more inclined to framing up their own home-based business. Well, that's really an appreciable idea, because more business implies more activities implies more doses of antibiotics to fight the germ. But there are sectors that are resistant to recession... thank God, there still exist something called "Recession Proof Jobs"! Here are the top 10 Recession Proof Jobs.
Accounting - Just because some employers feel like a fish out of water with economic crisis looking up, doesn’t mean that they won't require accountants. Employers need more skilled accountants to come up with advanced accounting and auditing methods during the period of recession. This is what makes the job of accounting a recession proof job.
Administrator - With situation going tougher every single moment, more skilled administration executive is required to garb a solid hold of the mast. There will always be a need for experienced administrator to keep the ship of business in right direction, lest it doesn't get struck to an iceberg of recession.
Education - Never in history did a nation's education system suffer halt during a period of recession. Education system shouldn't be ceased even in hardship. There will always be need of teachers and trainers, which makes the job related to education one of the most recession proof jobs.
Funeral services - "Death is a debt we all must pay", said Euripides. This true and obvious fact that no one can't deny. It doesn't really matter whether its a boom or recession or economic depression, there will always be a need for service person at the funeral.
Lawyer - Economic depression and recession cannot cease a country's legal department. Service of lawyers are of utmost requirements for keeping country's law and order on the track.
Medical and Nursing Service - Economic hardship doesn't mean people will not fall ill. Injury, pregnancy, heart attacks, opthalmic disorders, and other specific and general ailments are the major causes for people's visit to hospitals. Medical services will be in desperate need even though there's a decline on the global economy.
Software Development and Designing - A Study carried out by the US Department of Labor, shows that software development and design industry will have growth against all odd at least till 2016!
Police service - Statistics shows that crime tends to worsen up during economic crisis. Service of police departments, hence, comes out to be most important for society.
Fire brigades - Economic Crisis doesn't means there won't be accidents. Accidents can happen anywhere, at any point of time. Requirements for fire station service men will always be there irrespective of the socio-economic condition.
News Reporting and Journalism - Good journalism and news reporting is a key to the media Interview calls will always be there for experienced news reporters and journalists. Sometimes during the crucial phases like the one we are on requires more journalists and news reporters to provide exact report on media.
Accounting - Just because some employers feel like a fish out of water with economic crisis looking up, doesn’t mean that they won't require accountants. Employers need more skilled accountants to come up with advanced accounting and auditing methods during the period of recession. This is what makes the job of accounting a recession proof job.
Administrator - With situation going tougher every single moment, more skilled administration executive is required to garb a solid hold of the mast. There will always be a need for experienced administrator to keep the ship of business in right direction, lest it doesn't get struck to an iceberg of recession.
Education - Never in history did a nation's education system suffer halt during a period of recession. Education system shouldn't be ceased even in hardship. There will always be need of teachers and trainers, which makes the job related to education one of the most recession proof jobs.
Funeral services - "Death is a debt we all must pay", said Euripides. This true and obvious fact that no one can't deny. It doesn't really matter whether its a boom or recession or economic depression, there will always be a need for service person at the funeral.
Lawyer - Economic depression and recession cannot cease a country's legal department. Service of lawyers are of utmost requirements for keeping country's law and order on the track.
Medical and Nursing Service - Economic hardship doesn't mean people will not fall ill. Injury, pregnancy, heart attacks, opthalmic disorders, and other specific and general ailments are the major causes for people's visit to hospitals. Medical services will be in desperate need even though there's a decline on the global economy.
Software Development and Designing - A Study carried out by the US Department of Labor, shows that software development and design industry will have growth against all odd at least till 2016!
Police service - Statistics shows that crime tends to worsen up during economic crisis. Service of police departments, hence, comes out to be most important for society.
Fire brigades - Economic Crisis doesn't means there won't be accidents. Accidents can happen anywhere, at any point of time. Requirements for fire station service men will always be there irrespective of the socio-economic condition.
News Reporting and Journalism - Good journalism and news reporting is a key to the media Interview calls will always be there for experienced news reporters and journalists. Sometimes during the crucial phases like the one we are on requires more journalists and news reporters to provide exact report on media.
Saturday, February 28, 2009
A Mammoth in a Room
I am sure you guys would wonder what this “mammoth in a room” is all about! Well, this extract is all about the Economic recession. “Mammoth” here is the global economy… more specifically the most heated up topic of discussion – the global economic recession. Let’s assume that a mammoth has been captivated in a room. How can it grow? The global economic growth has suddenly come to a halt, affecting every single individual on the planet a way or the other. Banking and financial sector, IT sector, insurance sector and foreign trade sector have all been victimized by the recession venom. As the mammoth ceases to grow any longer, development has been paralyzed world wide. Joblessness, foreclosure, salary slashing, etc are all at the peak.
You might be facing hard time to pay the skyrocketing bills for your car’s fuels, grocery prices and other maintenance cost. Confusion has surged in to your life so stealthily and yet so steadily! Civilization is feeling the heat of what is known as economic recession. With an abrupt downturn of the global economy, people are gripped in the pronged pressure of tougher time. That doesn’t mean you can’t survive the economic recession! If you sit back on your couch and spare a thought over this issue, you can find loads of ideas to make money, when apparently survival seems to be too hard.
Help The Mammoth to Grow
Invest in the Stock Market: It may sound a bit too weird, but as a matter of fact, this is a time you should take advantage of. With crashing stock market, the purchase costs of shares of certain medium to big brands have come down. Purchase some of them! By this you will create a provision for your better future as well as adding worth to the economy.
Invest in Real Estate: Real Estate sector has crashed too. The cost turned down. This is the right time make some investment on real estate if you can. Purchase a land or a house at low cost now to be sold at higher cost in future. This way you will make some extra dollar in recent future and at the same time providing nutrition to the mammoth to grow.
More the mammoth will grow, faster the good time will be reached.
Start off a small business: Gear up your pace; go ahead to kick start a home based business of your own. Chalk out an action plan that suits you and your life style. Just be at it. Survey the market carefully, lest you don’t get trapped in scam. Data entry jobs, cooked food home service etc. are a couple easy options for you.
Steer clear of bad investments: It’s not only about money, but about time and labor too! Investments in wrong sectors will cease the mammoth to grow. Wrong investment implies wastage, which in turn, means letting the mammoth suffer from further malnutrition!
Remember, “Change is the only permanent thing in life”. Recession is just a phase that has to see its trough. But to survive the recession is what you should spare thoughts over.
You might be facing hard time to pay the skyrocketing bills for your car’s fuels, grocery prices and other maintenance cost. Confusion has surged in to your life so stealthily and yet so steadily! Civilization is feeling the heat of what is known as economic recession. With an abrupt downturn of the global economy, people are gripped in the pronged pressure of tougher time. That doesn’t mean you can’t survive the economic recession! If you sit back on your couch and spare a thought over this issue, you can find loads of ideas to make money, when apparently survival seems to be too hard.
Help The Mammoth to Grow
Invest in the Stock Market: It may sound a bit too weird, but as a matter of fact, this is a time you should take advantage of. With crashing stock market, the purchase costs of shares of certain medium to big brands have come down. Purchase some of them! By this you will create a provision for your better future as well as adding worth to the economy.
Invest in Real Estate: Real Estate sector has crashed too. The cost turned down. This is the right time make some investment on real estate if you can. Purchase a land or a house at low cost now to be sold at higher cost in future. This way you will make some extra dollar in recent future and at the same time providing nutrition to the mammoth to grow.
More the mammoth will grow, faster the good time will be reached.
Start off a small business: Gear up your pace; go ahead to kick start a home based business of your own. Chalk out an action plan that suits you and your life style. Just be at it. Survey the market carefully, lest you don’t get trapped in scam. Data entry jobs, cooked food home service etc. are a couple easy options for you.
Steer clear of bad investments: It’s not only about money, but about time and labor too! Investments in wrong sectors will cease the mammoth to grow. Wrong investment implies wastage, which in turn, means letting the mammoth suffer from further malnutrition!
Remember, “Change is the only permanent thing in life”. Recession is just a phase that has to see its trough. But to survive the recession is what you should spare thoughts over.
Effects of Gobal Economic Recession on Indian Economy
The current global economic crisis has affected almost every country. The might of the mighty economies around the globe is enormously perturbed by the economic crisis around the world. They are facing acute catastrophe of liquidity and credit. The prime explanation being, global economy does not function in isolation. All economies are webbed with each other. Oscillation in the trade balance and economic conditions send tremors throughout the economic web.
Is India in Recession
Starting from economists to industrialists and also general mass on the streets must have been horror-struck by the very thought of recession in India. It’s recession in India. The Indian economy is not insulated from the global economic crisis that is looming over. Documentations show that the industrial growth has attained a mere 1.3% hike as compared to the same period in 2007. 1.3% is the lowest IIP (Index of Industrial Production) that has ever been registered in last ten years. This is a major issue of concern for the policy generators and industries.
Effects of recession in India
Several sectors of Indian economy are likely to face severe jolts as an effect of the global economic recession. The front runner among them is the real estate industry. A significant descend in demand has caused a stiff fall in property prices, nearly 15-20%. There may be an additional decline of another 20% in the coming Six months. The hues and cries of the real estate sector have infected the construction industry as well. The financial service sector is possible to be a victim of the global recession too. The GDP is going to suffer big time as this three sectors account for almost one third of the service GDP. The sudden slow down of industrial growth is expected to deliver a severe blow to the transport industry in turn.
The Indian IT companies are dependent on the banks and financial institutes for nearly half of their revenues. The slowed down economic activities due to current global economic crisis has restricted the financial institutes and banks to offer revenues to this sector which forced the IT industry to face a severe crisis.
The Indian Rupee is gradually gaining strength against Dollar. The consequence of this is emerging worries for the exporters though the long term prospect for the Indian exporters is stable.
The ripples of crumbling global market can be seen world wide. Its effect can be felt in the Indian economy too. Though the watchful approaches for economic reforms have saved her from a possible disaster of greater magnitude, but Indian economy is stiffly down trodden, beyond doubts. Good news is that the Indian financial infrastructure is less exposed to foreign assets and their derived products than other countries. The factors determining economic growth is more of local in nature. No sector has a dominant share on earning growth. The growth aspect of the Indian economy is moved forward by strong growth in domestic consumption and noteworthy spending on building infrastructure. The overall impact is, more of a sterilized effect on the Indian economy than the other countries has witnessed due to the current global economic recession.
The much criticized slow paced economic growth of India has proved to be a boon in disguise.
Is India in Recession
Starting from economists to industrialists and also general mass on the streets must have been horror-struck by the very thought of recession in India. It’s recession in India. The Indian economy is not insulated from the global economic crisis that is looming over. Documentations show that the industrial growth has attained a mere 1.3% hike as compared to the same period in 2007. 1.3% is the lowest IIP (Index of Industrial Production) that has ever been registered in last ten years. This is a major issue of concern for the policy generators and industries.
Effects of recession in India
Several sectors of Indian economy are likely to face severe jolts as an effect of the global economic recession. The front runner among them is the real estate industry. A significant descend in demand has caused a stiff fall in property prices, nearly 15-20%. There may be an additional decline of another 20% in the coming Six months. The hues and cries of the real estate sector have infected the construction industry as well. The financial service sector is possible to be a victim of the global recession too. The GDP is going to suffer big time as this three sectors account for almost one third of the service GDP. The sudden slow down of industrial growth is expected to deliver a severe blow to the transport industry in turn.
The Indian IT companies are dependent on the banks and financial institutes for nearly half of their revenues. The slowed down economic activities due to current global economic crisis has restricted the financial institutes and banks to offer revenues to this sector which forced the IT industry to face a severe crisis.
The Indian Rupee is gradually gaining strength against Dollar. The consequence of this is emerging worries for the exporters though the long term prospect for the Indian exporters is stable.
The ripples of crumbling global market can be seen world wide. Its effect can be felt in the Indian economy too. Though the watchful approaches for economic reforms have saved her from a possible disaster of greater magnitude, but Indian economy is stiffly down trodden, beyond doubts. Good news is that the Indian financial infrastructure is less exposed to foreign assets and their derived products than other countries. The factors determining economic growth is more of local in nature. No sector has a dominant share on earning growth. The growth aspect of the Indian economy is moved forward by strong growth in domestic consumption and noteworthy spending on building infrastructure. The overall impact is, more of a sterilized effect on the Indian economy than the other countries has witnessed due to the current global economic recession.
The much criticized slow paced economic growth of India has proved to be a boon in disguise.
Sunday, February 15, 2009
Global Economic Recession – Tidbits About The Economic Recession Effects
What is Economy Recession?
Global economic recession has been the most heated up topic of debate these days! The current inflation recession has suddenly peeped through to arrest the economy growth world wide, but most of us can’t understand the reasons and causes behind it, although we look for it. The current global economic recession is one such situation that has thrown the world’s employment structure in deep soup!
The economy that grew over a phase of time tends to dawdling down. An economy characteristically grows for six to ten years and then goes to recession for six months to more than a year. The declining curve of the business life cycle is the economic recession. The first quarter of negative growth in a recession cycle is often followed by positive growth for several quarters, followed by another quarter of negative growth. The economic recession is the negative growth of GDP for two consecutive quarters or more. The official agency in charge declared that the economy is in a state of recession in the National Bureau of Economic Research.
What Causes Recession?
A recession is primarily caused by the measures adopted to control the money flow in the economy.
The Federal Reserve is responsible for maintaining an ideal balance between money supply, interest rates, and inflation. When The Federal Reserve falters with this equation, the economy is forced to correct itself.
The Feds monetary policy of injecting huge volume of money supply into the money market has kept interest rates lower while inflation continues to rise. The economic recession affects a nation or the global economy as a whole in many ways. Inflation recession is a general rise of the prices of goods and services over a substantial period of time. The higher the rate of inflation, the smaller the amount of goods and services that can be purchased with the same amount of money. During such global economic recession, people tend to cut out overall spending and emphasize to save more. The individuals and businesses cut down expenditures and udergo a cost trimming operation, this causes GDP to crash. Unemployment rates rise as companies lay off workers to cut costs. It is these combined factors that cause the economy to fall into a recession – very much like a vicious circle.
These circumstances doubled with relaxed policies in lending practices making it extremely easy to borrow money can result in unsustainable economic activity and the economy coming to a near halt.
It is also said that recession can happen by factors that inflict short term growth in the economy, such as spiking oil prices or war. However, these are mostly short term in nature and rectify themselves in a quicker manner than the full blown recessions that have occurred in the past.
Economic Recession Effects
An economic recession can usually be felt before it happens. There is a tendency to see the economic environment changing in quarters preceding the actual onset. The growth in GDP will still be present, it will show signs of sputtering and you will see higher levels of unemployment, decline in housing prices, decline in the stock market, and business expansion plans coming to an hold. When the economy sees prolong periods of economic recession, the economy can be termed to as being in an economic depression.
The positive thing of Economic recession is that it rectifies Inflammation During an economic decline or recession, high yield stocks such as FMCG, pharmaceuticals, and tobacco tend to hold up better
Strategies to rectify Economic Recession
The Strategies pushing an economy out of a recession varies depending on which economic genre the policymakers follow. While Keynesian economists may suggest deficit spending by the government to ignite economic growth, supply-side economists may suggest to trim tax to promote business capital investment. Laissez-faire economists may simply recommend that the government not interfere with natural market forces. Both government and business have responses to recessions.
Global economic recession has been the most heated up topic of debate these days! The current inflation recession has suddenly peeped through to arrest the economy growth world wide, but most of us can’t understand the reasons and causes behind it, although we look for it. The current global economic recession is one such situation that has thrown the world’s employment structure in deep soup!
The economy that grew over a phase of time tends to dawdling down. An economy characteristically grows for six to ten years and then goes to recession for six months to more than a year. The declining curve of the business life cycle is the economic recession. The first quarter of negative growth in a recession cycle is often followed by positive growth for several quarters, followed by another quarter of negative growth. The economic recession is the negative growth of GDP for two consecutive quarters or more. The official agency in charge declared that the economy is in a state of recession in the National Bureau of Economic Research.
What Causes Recession?
A recession is primarily caused by the measures adopted to control the money flow in the economy.
The Federal Reserve is responsible for maintaining an ideal balance between money supply, interest rates, and inflation. When The Federal Reserve falters with this equation, the economy is forced to correct itself.
The Feds monetary policy of injecting huge volume of money supply into the money market has kept interest rates lower while inflation continues to rise. The economic recession affects a nation or the global economy as a whole in many ways. Inflation recession is a general rise of the prices of goods and services over a substantial period of time. The higher the rate of inflation, the smaller the amount of goods and services that can be purchased with the same amount of money. During such global economic recession, people tend to cut out overall spending and emphasize to save more. The individuals and businesses cut down expenditures and udergo a cost trimming operation, this causes GDP to crash. Unemployment rates rise as companies lay off workers to cut costs. It is these combined factors that cause the economy to fall into a recession – very much like a vicious circle.
These circumstances doubled with relaxed policies in lending practices making it extremely easy to borrow money can result in unsustainable economic activity and the economy coming to a near halt.
It is also said that recession can happen by factors that inflict short term growth in the economy, such as spiking oil prices or war. However, these are mostly short term in nature and rectify themselves in a quicker manner than the full blown recessions that have occurred in the past.
Economic Recession Effects
An economic recession can usually be felt before it happens. There is a tendency to see the economic environment changing in quarters preceding the actual onset. The growth in GDP will still be present, it will show signs of sputtering and you will see higher levels of unemployment, decline in housing prices, decline in the stock market, and business expansion plans coming to an hold. When the economy sees prolong periods of economic recession, the economy can be termed to as being in an economic depression.
The positive thing of Economic recession is that it rectifies Inflammation During an economic decline or recession, high yield stocks such as FMCG, pharmaceuticals, and tobacco tend to hold up better
Strategies to rectify Economic Recession
The Strategies pushing an economy out of a recession varies depending on which economic genre the policymakers follow. While Keynesian economists may suggest deficit spending by the government to ignite economic growth, supply-side economists may suggest to trim tax to promote business capital investment. Laissez-faire economists may simply recommend that the government not interfere with natural market forces. Both government and business have responses to recessions.
Subscribe to:
Posts (Atom)