WHAT IS RECESSION?


Before,we can talk of recession we must first know what business cycle is

Business cycle refers to the fluctuations in economic activities, that is boom in one period and doom in the next I.e fluctuation in production,trade.
And there are five phases to a business cycle

1.The expansionary phase: Characterized by increase in GDP,employment and when the economy is in it peak


2.The peak phase: When the economy is in its climax or boom


3.Depressionary phase: Characterized by a persistent fall in employment, Output, fall in income etc.


4. Recessionary phase: This characterized by a complete fall in economic activities


5. Recovery phase: This is a healing period for the economy, characterized by a rise in employment,income,savings etc.



However, our emphasis here will be on RECESSION.


Recession is a global phenomenon, and globally it has occurred twice one is the great depression of 1929 and the 2008 global economic meltdown.

Recession is not a palatable experience as it gives rise to a fall in income, and when income depletes savings falls, which results in a fall in investment (Economically, savings should equal investment) But in recession savings will not equal investment.


In 1929 when the Great depression occurred the classical school of thought that held sway as at that time failed to revive the economy with their theory of the INVISIBLE HAND (Govt. Hands off) that is the economy is capable of regulating itself through the forces of demand and supply.


However, JOHN MAYNARD KEYNES of the Keynesian temple in 1932 came up with the theory of the VISIBLE HAND (Government should infere). This was a master stroke as the government interference in the economy by pumping money into the system revived the economy

SOLUTION TO NIGERIA'S RECESSION

Nigeria should adopt an EXPANSIONARY MONETARY POLICy

By expansionary monetary policy I mean that the government should inject a large amount of money into the economy, reduce tax to encourage investment, reduce interest rate for credit(Loan) and increase aggregate demand( Number of people willing to buy in the economy) so that income can rise and savings will also increase so as to equal investment which is the economic formular for a self-sustaining economy.
If this is done the contractionary phase of recession will be curbed.


Iamemma

Economist

Recession is Reduction of govt economic activities due to low revenue,which is not meeting expenditure.

Ngr oil money is what govt officials past and present use to live like emperors, but it now hit them that due to oil revenue decline,they sobberly condition themselves to live like a peasants.

And average Ngr politicians refused to learn from white man to use commonwealth to create more wealth to accommodate expanding populations, he or she will rather prefer to empty the treasury for his unborn generation. This is the serious sickness with preceeding govt till date of change. And I hope this change can cure this sickness of Ngr politicians grabbin power to loot rather than boost economy since independence.
if we do these five things recession will be over in few months.
Solution 1
Cleanings of all politicians mind and ridding them of spirit of covetousness and lootry, all of them have this mental problem,their minds are twisted and can only be redeemed by the power of their creator,the Almighty God. Only then they can have sanity to implement right things.

Solution 2, for oil price to bounce back beyond $50 as in years 2010 and 2013 is still a mirage,this is very unreliable now,because of the highest political manipulations both locally among oil merchants,bdcs, and internationally powerful nations bragging;

Solution3
Fix power permanently to revive industrialization to attract international investments/borrowings from capitalist institution;

Solution 4 Buy made in Nigeria, a practical campaign to be led by example by gov officials, curb appetite for foreign products and look inwards to villages to increase farm produce on arable vast lands from Lagos to Asaba travel ways promotin commodities exports, solid mineral exports,etc.
warning! Stop importing luxury perfumes, or luxury items, stop the frenzy among ecodrunk politicians, stop importin Italian suits, stop importing furnitures for Aso rock or National Assembly furniture allowance, stop buying pulp or bulk items with local alternatives;

solution5
mak sure Nigerdelta citizens are getting their dues to compensate for their environmental degradation...

I hate when people say fix power and infeatructure as if there is a place u will press and they become fixed but government is refusing to press it

Fixing power n infrastructure requires at least $500bn... were can we see such money?? I mean capital expenditure ooh

Nigeria can still bounce back only if the right policies are put in place, but am scared to say that our Economic team are acting confused

Na waa for all these your 5 solutions.
Look at each one of them carefully. Do you seriously think that they can be achieved even in the next 5 years. If these are only solutions, then we are in perpetual recession.

I better find Rwanda visa commot b4 hunger chase us to the streets.