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Nairaland Forum / Nairaland / General / Politics / Recession And The Questions Nigerians Should Be Asking (2173 Views)
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Recession And The Questions Nigerians Should Be Asking by Victorblaze14(m): 7:45pm On Sep 01, 2016 |
What Is a Recession? First, let's take a look at recessions. There are two definitions of recession: one defines a recession as two consecutive quarters of negative economic growth, and the second defines a recession as a significant decline in national economic activity that lasts more than just a few months. How It Works The growth of our economy rests upon the balance between the production and consumption of goods and services. As the economy grows, so do incomes and consumer spending, which continues the cycle of growth. However, because the world is not perfect, at some point, the economy has to slow. This slow down could be caused by something as simple as an oversupply, where producers manufacture too many goods. When this happens, the demand for those goods will drop. A recession has a domino effect, where increased unemployment leads to less growth and a drop in consumer spending, affecting businesses, which lay off workers due to losses. A recession occurs when there are two or more consecutive quarters of negative gross domestic product (GDP) growth. In other words, economic growth slows during a recession. Attributes of an economy experiencing a period of recession include a fall in sales and revenues of corporations, a fall in stock prices, falling incomes and a high unemployment rate. When an economy is facing recession, business sales and revenues decrease, which cause businesses to stop expanding. When demand is not high enough, businesses start to report losses and first try to reduce their costs by lowering wages, keeping wages where they are and ceasing to hire new workers, which increases the unemployment rate. A decrease in the GDP causes firms that aren't recession-proof to report losses and can cause some companies to go bankrupt, resulting in massive layoffs and increasing the unemployment rate as well. Recession effects can snowball and worsen the recession. When there are massive layoffs and no jobs being created, consumers tend to save money, tightening the money supply. When there is a tightened money supply, unemployed workers and workers with low wages tend to save more and spend less, decreasing the demand for goods and services and decreasing consumer spending. This drop in demand lowers the growth rate of companies and the economy, which, in turn, leads to greater losses in non-recession-proof business. REMEDIES OF ECONOMIC RECESSION 1.. Promote the Exports The government should promote export, trade and business process in order to reduce the deficit of acute and sharp balance of payment. 2..Reduce the Unemployment The government should open new factories and industries at as many places as possible. Unemployment should be reduced at minimum level. It is necessary for the progress and prosperity of economical situation. 3..Reduce the Inflation Increase in prices of foods, utilities and essential commodities must cause high depression for general public. The government should increase the production of different ways in order to stable the gap between the supply and demand. 4..Promote the Investors The government should promote and appreciate the local and foreign investors in order to increase in investment and for the establishment of the financial position of the country. Question nigerians should be asking 1.. What are economic policy put in place by the government to combat this recession 2..Government should make it known when Money is finally put into manufacturing E.T.C 1 Share
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Re: Recession And The Questions Nigerians Should Be Asking by Nobody: 8:22pm On Sep 01, 2016 |
Good one. But those solutions u offered can only work in a country where everyone sees himself as a stakeholder. |
Re: Recession And The Questions Nigerians Should Be Asking by Victorblaze14(m): 8:50pm On Sep 01, 2016 |
Yes off course |
Re: Recession And The Questions Nigerians Should Be Asking by TheVictorious(m): 9:41pm On Sep 01, 2016 |
It is so sad that threads like this are not always promoted. Meanwhile vote for queen_omalicha01 (contestant11) as AdaIgbo of UNILAG.......https://www.instagram.com/p/BJxc1P3hx7T/ |
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