Premium Essay

Negative Impacts of Economic Reccession

In: Business and Management

Submitted By EN0825
Words 861
Pages 4
Negative Impact of Economic Recession
By Tejvan Pettinger on September 11, 2012 in economics
A recession means a fall in GDP / national output. A recession will typically be characterised by high unemployment, falling average incomes, increased inequality and higher government borrowing. The impact of a recession depends on how long it lasts and the depth of the fall in output. The great recession of 2008-12 has shown many of the negative impacts of recession.

Unemployment

Not everyone is affected equally by a recession. A fall in GDP will cause a rise in unemployment. This is because: • Some firms will go bankrupt meaning all workers lose their jobs. • In an effort to reduce costs, firms will cut back on hiring new workers. Therefore, unemployment often affects young people the most.
In this recession, unemployment in the UK has risen to over 2.6 million, though given the depth of the recession, you might have expected it to be even more (e.g. in 1980s, unemployment rose to over 3 million). However, in Europe, many countries in recession have seen a catastrophic rise in unemployment. With rates of over 20% in countries such as Greece, Spain and Portugal.
[pic]
Rise in Spanish Unemployment. Source ECB

Lower wages

Firms will also try to reduce costs by keeping wages low. Some workers (especially temporary workers without contracts may see wage cuts) This has been a key feature of the 2008-12 recession, also aggravated by rising costs of living. With cost push inflation, nominal wages haven’t kept pace meaning UK workers have seen substantial cuts in their real wages. Another cause of lower wages is under-employment. Some workers may keep their job, but see their hours cut. Rather than working full time, they become part-time workers (e.g. 20 hours a week). This means that the rise in unemployment may be muted, but many workers see…...

Similar Documents

Premium Essay

The Negative Impact of Healthcare Politics

...What is at stake: The negative Impact of Healthcare Politics Feb. 23, 2011 A surgeon tears out of an operating room red-faced, and extremely aggravated. He proceeds to stomp down the hallway with a vengeance; his destination, the nurse’s station. He works up all his anger and releases it into the face of the charge nurse. “My God!" he clamors, “you have got to have some of the worst underlings in the history of this hospital! Do you ignorant people realize what is at stake here! ” All the while the nurse continues to treat the recovering patient whom the doctor left because he received the wrong instrument. When trying to justify his uproar the surgeon explains that “his license is at stake,” and he “does not have the patience for uselessness in his operating room.” Doctors and nurses are two groups of people in the medical field who share an almost homogenous objective, and that is to serve the patient to the best of their ability. Unfortunately, the politics between doctors and nurses interferes with patient care. It is a constant struggle of power within the walls of the hospital. Both with the idea that they are all knowledgeable; both with the belief that if in a hostile situation they are the victim, and both losing sight of the main goal: to treat the patient. Physician Executive Carrie Johnson writes, “the reduction of behavioral problems can only be corrected through early education for both physicians and nurses. This needs to be......

Words: 1718 - Pages: 7

Premium Essay

Negative Economic Impact of the Ppaca

...Negative Economic Impact of the Patient Protection and Accountable Care Act The Patient Protection and Affordable Care Act (PPACA) also referred to as ObamaCare, federal healthcare law, Affordable Care Act, or ACA, is a United States federal Statute signed into law on March 23, 2010, by President Barack Obama. In combination with the Healthcare and Education Reconciliation Act, it represents the most significant regulatory overhaul of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965 (Patient Protection and Affordable Care Act). The PPACA is intended to increase the number of health insured Americans and reduce the overall costs of healthcare. The PPACA will revamp the current health insurance system by extending health insurance coverage to nearly 32 million currently uninsured Americans; 18 million through Medicaid expansion to individuals with incomes under the 133 percent federal poverty line (FPL), and 18 million through government exchange subsidies to individuals with incomes up to 400 percent of the FPL. Citizens and legal residents in families with income between 100 and 400 percent of poverty who purchase coverage through a health insurance exchange are eligible for a tax credit to reduce the cost of coverage. To subsidize the additional 32 million individuals covered, the new law introduces 18 new taxes and penalties on individuals, employers, and businesses (Campbell). Though the PPACAs intent is to lower healthcare costs, it......

Words: 3283 - Pages: 14

Premium Essay

Social Networking Negative Impact

...Social networking is a very common way for people of different groups, age, ethnic background to connect together. It is more like a community that belongs to a country called the "internet". Social networking has many negative aspects to it and it should be restricted as it is not safe, causes social problems and health problems. Social networking can be an excellent motivator for people to interact socially because It is safer than meeting random people on the street and can help people who are depressed or deal with other social health problems. Social networking is not safe as it does not protect children, teenagers and adults and they are used and abused through cyberbullying, fake profiles and sexual harassment. Cyberbullying is the use of cell phones, instant messaging, e-mail, chat rooms or social networking sites such as Facebook and Twitter to harass, threaten or intimidate someone (Rouse Margaret, 2010) . In some cases, cyber bullying can be put to an end from the very beginning if the victim puts a stop to it themselves or by telling a superior. The sad part is that some children get affected by this and end up killing each other and committing suicide due to cyberbullying. "Forty-three percent of teens have been victims of social networking" (Harris Interactive Cyberbullying Research Report, 2006) and shockingly enough "almost 80 percent of teens said that they either did not have parental rules about internet use or found ways around the rules"(Harris......

Words: 1094 - Pages: 5

Premium Essay

Negative and Positive Impacts of Social Networks

...Negative and Positive impacts of Social Networks Kaira Barnfield ENG110: College Writing Post University Abstract There is some positive and some negative impacts in social networks. Some people use the social network to promote their business, to make new friends, and keep in touch with family and friends. The negative of the social network is cyber bullying. Cyber bullying causes so many children and teens to end their lives. In this topic I aim to show how social networks benefits to the society far outweigh the risks. Social networks can make you or break you. In my essay it would explain how social network positively and negatively affects people relationships and their everyday life. Some people let social networks break their relationships up and mess up communication. Since the social network first begin in 2004, the people relied more on online social networks, to gather news, keep in contact with friends and family, and identity. Social networking sites such as Twitter, Facebook, and Instagram all have a positive and negative impact on people. The most popular social network is Facebook, it allows people to build and/ maintain with different people around the world. Facebook also help family members and old classmates keep in touch. A person also uses Facebook to promote their businesses. Facebook and other social networks help a lot of business draw more costumers. Not all people use Facebook to do those positive things. Some people use it to...

Words: 844 - Pages: 4

Premium Essay

Negative Impacts of Generational Difference

...Negative impacts of generational differences in the workplace of China The past decades have witnessed a dramatic transformation in China. With the development of modern society, the generational differences are becoming growingly deep and complex. Although it is normal that people have diverse personalities and lifestyles, the disparity between generations is quite evident. Working age Chinese fell into two main generations, “a generation being defined as an identifiable group that shares birth years, age, location, and significant life events at critical developmental stages”(Kupperschmidt, 2000, p.65), divided by the year when the reform and opening up was implemented. As an increasing number of young people have graduated from schools and start their careers, concern about the generational difference in the workplace is raised. Since different generation internally share different value and culture, communication problems and interpersonal conflict are almost inevitable, which may result in negative impact in workplace, like inefficiency and low productivity. In this essay, the causes and effects of these problems will be examined before continuing suggesting solutions. The essay will then be concluded by presenting personal opinion on this topic. The first and perhaps most common problem emerges from generational differences in the workplace is communication difficulty. The young generation and old generation both have their unique languages due to different culture......

Words: 833 - Pages: 4

Free Essay

The Impacts of Economic Growth

...The Impacts of Economic Growth Economic growth is the increase in the amount of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. There are many positives and negatives with economic growth. Economic growth improves standard of living through sustained GDP growth, it improves tax revenues and provides the government with more money to spend on healthcare, education etc. Growth boosts business profits, a stronger economy increases consumer confidence therefore allowing people to purchase luxuries and once again improve their standard of living. Economic Growth will also increase employment, as growth increases as do business profits, therefore companies have more available finances to be able to pay wages and therefore levels of employment increase. Economic Growth can help protect the environment, as business profits increase, companies have more finance and can therefore invest in carbon investment, innovation and research and development to reduce the amount of harmful substances released during the production stages, therefore reducing their effect on the environment. On the other hand, economic growth poses as a threat of inflation risk. Increase in demand may be more than available supply and will therefore cause prices to rise, so consumer confidence decreases along with standard of living and business profits. Economic growth can have a......

Words: 321 - Pages: 2

Free Essay

Negative Impact of Fdi

...I) NEGATIVE IMPACT 1. Exploit the workforce that is available in host country. Take undue advantage of low cost labors , unskilled labors…, make use of probation to consistently change labors without training or equipping them with experience, skill and qualification Because FDI enterprises in Vietnam are mainly conducted labor-intensive processes such as machining and assembly. Even the leading technology companies such as Intel Inside Sam Sung that have production facilities in Vietnam mainly produced components, as inputs to the process of creating a product in another country. Besides, a number of investment projects of China, one of the major partners of Vietnam, often use Chinese labor instead of hiring workers from VN 2. There is little technology transfer and management skill transfer into Viet Nam. Even Viet Nam becomes an industrial garbage after adopting out of date technologies. Investors tend to keep their “know- how” in secret. Channel 1: At a conference to summarize 25 years of new FDI was organized, Deputy Minister of Planning and Investment said Dao Quang Thu, 80% FDI technology used currently in Viet Nam is average, 5 6 % used is high-tech, 14% low and backward, there are individual cases using outdated technology. Technology transfer is mainly done horizontally - between business enterprises, with little change in the level and technological capacity. Despite the fact that there would be no corporations, they now carry the No. 1 technology,......

Words: 2763 - Pages: 12

Free Essay

Economic Growth Impacts

...The Impacts of Economic Growth Economic growth is the increase in the amount of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. There are many positives and negatives with economic growth. Economic growth improves standard of living through sustained GDP growth, it improves tax revenues and provides the government with more money to spend on healthcare, education etc. Growth boosts business profits, a stronger economy increases consumer confidence therefore allowing people to purchase luxuries and once again improve their standard of living. Economic Growth will also increase employment, as growth increases as do business profits, therefore companies have more available finances to be able to pay wages and therefore levels of employment increase. Economic Growth can help protect the environment, as business profits increase, companies have more finance and can therefore invest in carbon investment, innovation and research and development to reduce the amount of harmful substances released during the production stages, therefore reducing their effect on the environment. On the other hand, economic growth poses as a threat of inflation risk. Increase in demand may be more than available supply and will therefore cause prices to rise, so consumer confidence decreases along with standard of living and business profits. Economic growth can have a......

Words: 321 - Pages: 2

Free Essay

Social Networks - Negative Impact

...Social Networks - Negative Impact Likes and dislikes are natural responses to the opinions of human beings according to the things that they are observing at the time and personal preferences. Problems occur when these personal preferences move from the realm of opinion into the realm of facts. The purpose of this paper is to examine the impact of social networks to discover their potential negative effects on the users and society. The primary focus of this paper being Facebook, one of the biggest names in the industry. Opinion Summary Vanderbilt Photographs are a way to memorialize an event that was meaningful, stupid, or sometimes dangerous. People usually share their most cherished photographs with close friends, family, and significant others. This is no longer the case. With the birth of Facebook and the explosion of social networking, complete strangers are now considered close friends because they liked something on the user’s page, or they are friends of friends (Vanderbilt, ). The sheer weight of this phenomenon has reached beyond the social aspect to the business and legal aspect. It has gotten to the point that businesses now check the Facebook page of potential employees to find out if they are truthful on their applications or to simply find out the kind of person they are outside the interview room. When it comes to the law, Facebook photos are being used as evidence to either prove or disprove an individual's state of mind at the time of the......

Words: 1854 - Pages: 8

Premium Essay

The Negative Political and Economic Impacts of Colonialism on Africa

...John Jackson Professor Orgala March 22, 2014 AFAM-101 The Negative Political and Economic Impacts of Colonialism on Africa In October 1884, Otto von Bismarck, the German Chancellor, summoned European countries to a conference in Berlin, Germany. At the conference diplomats from Europe and America signed the Berlin Convention, which ultimately ended the Berlin Conference. This conference was created to diminish intensifying colonial struggles in Africa. This conference effectively established the boundaries of European powers. The signing of the Berlin Conference led to the scramble for Africa, which is defined as “efforts to fully occupy” portions of Africa that remained independent. With the exception of a couple countries the continent of Africa became controlled by seven European powers, including: Belgium, Britain, France, Germany, Italy, Portugal, and Spain. After European powers possessed control over the continent, they began to transform African society and its politics. The reason I have for choosing this topic is that a thorough understanding of colonialism in Africa is key to comprehend the obstacles that the continent of Africa and it’s leaders have to face to lead their countries into prosperity (Schraeder). Peter J. Schraeder, author of the book African Politics and Society: A Mosaic in Transformation, credits the spread of the Roman Empire as the precursor to European colonialism. The Roman Empire’s spread to Africa started in 146 B.C. when the......

Words: 2712 - Pages: 11

Premium Essay

Negative Impact Ofl1 on English Writing

...his thesis, using quantitative approach, examined the negative impact of Chinese on university students°Ø English writing in organization, grammar, expression as well as usage of words. The aim of this study was to make clear the variety of the negative transfer of Chinese in university students°Ø English writing and give some suggestions so that both teachers and students could get inspiration or help from it in their teaching or learning of English writing. Sixty students participated in the study as subjects. They were asked to write a composition within 100-120 words on the topic of °± Creating a Green Campus°± which comes from 2009 Cet-4 Test Paper. In addition, a questionnaire was done and analyzed and discussed on the negative impact of Chinese on university students°ØEnglish writing. Results showed that the main problems in Chinese university students°Ø English writing include digression from the point, too many grammatical mistakes, unidiomatic expression, confuseing usage of words. These problems were mainly caused by the negative impact of Chinese which played a bigger part than its positive impact in Chinese university students°Ø English writing. This paper makes a detailed comprehensive description of the main problems and the causes of the problems. Accordingly some suggestions were proposed to help both teachers and students have a better understanding of the negative impact of Chinese on university students°Ø Engli 1. Introduction According to some......

Words: 1903 - Pages: 8

Premium Essay

Negative Impact on Children of Divorce

...Divorce and Its Possible Negative Effects on Children The purpose of this essay is to discuss divorce and its possible negatives impacts on the family, particularly children. In today’s society, divorce is a very common occurrence in families across the country. And, because of this fact many studies have dedicated a significant amount of attention to divorce and how it impacts families and children. Divorce has become an acceptable method of resolution when difficulties arise in the marriage, which may imply to some that a great deal of emphasis is no longer placed on keeping the family intact. In recent years, statistics show that over 60 percent of marriages in this country end in divorce, and this fact has some researchers and psychologists arguing that not only has divorce left the home broken, but many of the children that are products of this divide are showing signs of brokenness as well. The relationships that one shares with members of their family are often times the most significant bonds that are formed throughout one’s lifetime. As a result when these meaningful relationships are threatened by breakups, ultimately ending in divorce the negative impact can be prove to be severe. This is mainly true when the family relationship changes in a way where it becomes unfamiliar to the family members involved, and this is especially the case when there are children involved. When parents decide to divorce, many children find that it is very difficult to express and...

Words: 859 - Pages: 4

Premium Essay

Economic Impact

...ECON 310 Intermediate Microeconomics Costco; Your Local Friend Lawrence Lam Cal State Fullerton Superstores such as Wal-Mart, Target, and Home Depot have always been frowned upon by local businesses because of the competition it brings. Lower prices forces nearby stores to lower their prices until they shut down because of the negative profits from lowering their prices or because they don't acquire enough revenue to stay in the market. However ironically this feeling isn't shared towards the opening of Costco, another wholesale superstore. Costco's lower prices surprisingly causes local businesses to raise their prices. Even to the point where investors find area's relatively close to Costco to be an ideal location to start and open their own business. (Ann Arbor News) There are many differences between the way Wal-Mart and Costco works and what they provide to the community. To begin we will illustrate some benefits of Costco' entrance into a local town that is commonly known. As a wholesale store, Costco generates employees, from cashiers, stock associates, butchers, up to manager positions which provides job opportunities to the local area. In Pittsfield, the newly arrived Costco hired 180 employees out of the 1000 applicants, most which were locals. (annarbor) Costco indeed provides items at a cheaper price for the customers. This even applies to the top of the line brand's such as Sony, Samsung, Toshiba and more. Costco provides Kirkland brand......

Words: 1613 - Pages: 7

Free Essay

Economic Impact

...Economic Analysis The Memphis Grizzlies and The FedEx Forum Bill Madigan Southern New Hampshire University Abstract Economic impact is generated by the continuous operations of the FedEx Forum facility and by the daily operations of the Memphis Grizzlies. Additional impact is generated by the spending of visitors who come to Memphis for the sports and other entertainment events held at the FedEx Forum throughout the year. Visiting NBA teams also spend money which has direct impact on Memphis and Shelby County. Each year numerous events are held at the FedEx Forum and they bring in out-of-county visitors to Memphis and Shelby County. This impact is also a key point in the revenue generated for the area. In 2009/2010 the revenue generated by the Memphis Grizzles and other entertainment was about $223 million. The total number of jobs brought in by the Memphis Grizzles and the FedEx Forum is close to 1,534. This includes the jobs employed directly by the two entities and jobs that exist throughout the county that assist in visitors who come to the area. When discussing the economic there are many facets to look at besides jobs and income. The business plan of the Memphis Grizzles is Fans First. They do a tremendous job taking care of the fans and in return have seen a tremendous growth in ticket sales. Full Season Ticket sales for 2013-14 increased by over 20%. They have sold out 17 consecutive home playoff games. Corporate renewal rate is well over 90 percent.......

Words: 466 - Pages: 2

Premium Essay

Negative Impacts of Technology in Banking Sector

...Negative impact of technology in banking sector Information Technology solutions have paved a way to a new world of internet, business networking and e-banking, budding as a solution to reduce costs, change the sophisticated economic affairs to more easier, speedy, efficient, and time saving method of transactions. Internet has emerged as a blessing for the present pace of life but at the same time also resulted in various threats to the consumers and other institutions for which it’s proved to be most beneficial. Various criminals like hackers, crackers have been able to pave their way to interfere with the internet accounts through various techniques like hacking the Domain Name Server (DNS), Internet Provider’s (IP) address, spoofing, phishing, internet phishing etc. and have been successful in gaining “unauthorized access” to the user’s computer system and stolen useful data to gain huge profits from customer’s accounts. Thus Technology has come with its advantages. But it also has its negative effects; the case in question is the introduction of e-commerce in the banking sector; a technology hitherto known as "E-Banking". Hacker: Hacker is computer expert who uses his knowledge to gain unauthorized access to the computer network. He’s not any person who intends to break through the system but also includes one who has no intent to damage the system but intends to learn more by using one’s computer. Information Technology Act 2000 doesn’t make hacking per......

Words: 1843 - Pages: 8