Posted by: Neeraj | August 16, 2009

Why are recessions not good for us?

A recession is a general slowdown in economic activity over a sustained period of time – that’s what Wiki says. A prolonged recession does not augur well for us. Understood, that it breaks people down who lose jobs or whose expenditure is always greater than their income or who incur huge business losses which are difficult to recoup. But why do the ones whose life is not so drastically impacted suffer too. Let us analyse why:

Recessions take away our freedom to do

Recessions force us to change the way we live our lives, taking away from us the freedom of making a choice. Even when we don’t need it we still need that comforting thought that we have that freedom to do whatever we want. And when that freedom to do is taken away we rile.

Recessions impact us psychologically

We need change constantly.  A lot of that change is affected by our buying power. A recession strips us of that power and makes us defer our decisions to buy indefinitely – so we delay a decision to buy a house, we stop buying clothes, a car or a mobile. They also don’t let us go out on a vacation and stifle us into sitting at homes. They make us forego that change that we need constantly in our lives to perk us up. Add to this the uncertainty of not knowing the end date of the troubling phase and we begin to feel extremely insecure.

The result

This constant feeling of insecurity and helplessness which when faced everyday starts to break us down. The symptoms could be minor irritations, leading to increased phases of unhappiness and then depressions.

What we should do to tide over?

Apart from cutting down on the unnecessary expenses we should remember the simple principle of hanging on as this is just a passing phase in our life which is cyclical and will pass just like everything else does. In fact, we should take it as a lesson to be better and stronger for the next recessionary phase as and when it comes. And also we should not forget to add recession to our daily prayer asking God not to let the next one be as long because one thing is for sure – just like all natural calamities, recessions too will inevitably strike again and again and the people who will suffer the most would be the ones who are least prepared to handle them.

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