A decline in your financial situation or that of a country is most times described as recession. The world saw marked recession in2009 and the media says again the fear looms over many countries.
I am not an economist. Beyond my own domestic economic affairs, I have no idea of economics. But still through the daily news, it was apparent that the economy had crumbled much for many countries.
It saddens me to think that prosperous people of prosperous countries had to face economic hardships. Some people have had to work on lower salaries to sustain themselves while some unfortunate ones lost their jobs.
This made me think why it happened. There are many technical reasons for recession. But at individual level, I think the root cause lies in the greed of individuals for material goods along with unhealthy competition for the same.
Buy now and pay later was a trend started from the west. Gradually this has spread to other countries as well. Acquire all luxuries in life as soon as possible, even on credit that became the motto of majority of the people. Following this dictum, people literally started living just for today. In the rush for buying and acquiring various objects, individuals did not pause to review, whether the objects are useful or necessary in any way for them.
What one could spend in a life time, started being spent by persons just in span of a few years. People ignored the fact that by buying things on credit, they would end by paying more than the actual cost.
Business establishments have also taken full advantage of this attitude of people. A new model for the same product comes up in the market with something small added. This technological development is appreciable. But what is bad is that people set out to buy the latest product at the earliest opportunity. One may not need it, but seeing the latest model with some colleague or friend motivates them to buy it. Extensive advertisement by the company also creates hype as if that product is very essential for the well being of an individual.
Thus an unhealthy competition is generated, which ultimately creates two types of people, , “haves” and, “have nots”. Both categories of people suffer from mental stress. One, because they have spent money and are now maybe short of cash, another because they have not been able to buy the product.
Recession was a jolt for people living on credit. Many persons who had taken big loans suddenly found themselves in economic crises. Under great stress, some persons committed suicide.
It is a time for people to review their life styles. It is good to acquire worldly goods and luxuries. But it should be done prudently. Money should be spent judiciously and saved wisely. One should spend money such that some cash is always spared.
Priorities of life should be a good health, education, food and shelter. Beyond that if one can buy something comfortably, fine. Otherwise a person can wait patiently for enough funds to be accumulated for the same.
Before buying something new and expensive, a person should always ponder whether it is really useful for him or not. Buying things out of competition with others is unwise. Moreover, a person should be satisfied with what he has. An individual with an unsatisfied mind will always crave for more irrespective of the abundant wealth he has.
Simple living and high thinking was the principle followed by elders in all communities and this holds true even today. If one is fortunate to be having enough wealth, he can use the spare money for welfare of the underprivileged people of the society. One should always save money for some unforeseen emergency and coming old age.
If people learn to be satisfied with what they have and adopt the principle of simple living and high thinking, any kind of recession will not harm people in a big way.