Frightening Recession and how to survive the same
Global recession has been taking a heavy toll of the humankind in the recent months. Many causes for the same are attributed to recession. We hear the news of job losses all over and the inflation has been increasing massively.
There have been layoffs of huge number of staff members in the multinational corporate companies such as Amazon, Flipkart, Twiiter, Face book etc. While the Covid pandemic has greatly impacted the communities belonging to all the countries of the world during the last two years the war between Ukraine and Russia has almost dealt a death knell to the economy of every nation in the world.
All these factors have pushed the economy of the world to the lowest ebb in recent decades. The productivity of nations that contribute to the production of various goods like China, UK, Indonesia India etc have fallen sharply.
The inflation rate has been soaring to unprecedented levels. The price of petrol and diesel have been increasing all over the world thanks to the Ukraine Russia war. The loss of jobs automatically reduces the ability to spend. The Covid pandemic has already led to loss of livelihoods and reduced incomes among the unorganized families in a big way in countries like India.
The individual purchasing power is likely to touch its nadir. It is predicted that around 175000 persons would lose their jobs in the United States of America alone in the coming year of 2023. The unprecedented inflationary trends and its impacts on the people of even a nation like United Kingdom is unimaginable indeed. In these conditions, one can imagine the condition of the developing nations. The International Monetary Fund (IMF) and other international organizations have been cautioning about the impending serious economic recession.
The interest rates have been increasing as well as a consequence. The sale of vehicles have fallen to record lows in recent months in India and other countries indicating the dent in purchasing power of individuals. Interest on housing loans have been increased by the Reserve Bank of India that automatically leads to rise in rentals of residential and commercial establishments.
In such circumstances there are only a few ways to survive the impacts of inflation and recession trends of goods and services. People should cut short of any expense which they would deem as unnecessary immediately. This would enable savings of a part of their earnings.
People also should set aside an amount as reserve fund to meet contingencies and emergency expenses. This reserve fund would vary depending upon the categories like the lower middle sections the middle class etc. This apart, they should also look for alternative avenues of additional income generation ways such as part time jobs etc.
Together with such measures for financial prudence other social behavior patterns too would come in handy. Keeping intact the circle of friends and creating new friendships which would extend a helping hand during times of extreme financial crisis.
SPPD has been alive to the prevailing conditions and does every thing to generate awareness on the global financial recession and the ways to cope with the same among the target communities here. Financial literacy is imparted among especially the women in the Self Help Group meeting and other training sessions of marginal farmers and even among children about savings and austerity etc.
So let us be prepared for the worst and save ourselves and tide over the same with prudent financial measures such as thrift, savings, alternated employment etc.
Poongudi panchayath,Puthukottai DT,Tamilnadu
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