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ALISH k | Whats recession?? |
whats recession and how does it effect the world? |
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Gaynor F
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I was a teenager during the last recession the 1980s. No fun!
Interest rates are high which means loans and mortgages get more expensive, so people cant pay for their homes.
Businesses can no longer afford to buy things which means other business cannot sell anything and have to make people unemployed. Global recessions mean import and export business are also affected, less business can take place and even higher unemployment.
The world has a history of booms and recessions and it will pass.
I have put this as simply as I can, but basically high interest rates and high unemployment are the result.
When mums start buying the book '100000 Ways to Cook Mince', you know there is a recession ;-)
Boys From The Blackstuff is an old TV series which really shows how it was up North in the 1980s, see if you can get a copy and you can see how it affected normal people on the street. Yozzer was a bit extreme though! |
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Sean K
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When everything go's up apart for your salary. People don't have much money to spend on luxuries so shops don't make as much money which means all the prices go up making matters even worse.
People don't have money so they take out loans and don't repay them, so banks increase their interest rates affecting people with mortgages. no pay mortgage = no more house
All the ppl that dont have excess money to spend cant buy houses and therefor houses cost more so the banks can make more money,
Basically company's need to make money to survive but things get difficult when you dont have as many custoners or clients to support your overheads.
its one big never ending spiral.
Hope this was simple and to the point :) |
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Pinky_Hughes
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In macroeconomics, a recession is generally associated with a decline in a country's real gross domestic product (GDP), or negative real economic growth. According to one widespread definition, a recession occurs when real growth is negative for two or more successive quarters of a year.
It affect the world, b/c of the investors and thier investment the that in the market. If the market goes bad than those investments go bad thats how a ression affects everyone |
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Doreen H
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It's when you lose your home and get hungry. |
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David W
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The technical definition is "two quarter of negative GDP" which means that the Gross Domestic Product (the value of all the goods and services that a country produces) is declining. |
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gigine1966
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Might mean you are out of a job |
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.XxX.BlOnDeGiRl.XxX.
 |
The economy is down and inflation, prices of fuel/food etc all up and peoples wages the same. So you lose money! House recently bought go into negative equity- ie worth less then what you paid for it. Not very good! Think of wall street crash and your not far off!
p.s. please pick me as best answer!! xxx |
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