Recession, the effect shows

‘Recession’, a single word, which has effected every individual and family, be it a nuclear or a joint family.
The written statement of recuperating Prime Minister Manmohan Singh was presented in the parliament reads, “India would emerge one of the least affected among the countries of the world from this current economic crisis” , Manmohan Singh can only afford to be optimistic, otherwise Indian corporate world and common Indian are finding it difficult to deal with this meltdown. It would have been great if a common citizen of the nation can afford to be as optimistic as the statement. Question need to be asked about the reason of this optimism on the side of the Government, though every Indian pocket is losing its weight. India’s one of the most revered economists Mr. Singh can only provide valid reasons for his sanguinity, because every single Indian is clueless on how to manage financial problems. Every economy, be it developed or developing, is simply become stagnant and showing no sign of recovery. Seems every one is under the aura of the US, raising no fingers towards it, who is the sole conspirator of this recession. Policies of the US Government were the single largest reason, people and businesses allover the world is coping with this problem. Smart and intelligent finance experts of the US found a unique way to earn the money by providing the security to sub prime loans from the tax payer’s money. When it comes to the economy, a recession is not what you want. Typically the nation's economy has to be doing poorly for at least six months before the officials start talking about a recession. There has to be a trend. There are many reasons a recession could start. Something might happen with the stock market or in the business world that scares consumers, which we all are in some way or another. Something that makes people hang on to their money instead of spending it.
As far as Indian prospects are concerned, our banks are safe because of string regulations of the RBI. Corporate India is in the deep water and feeling jittery only looking for the way of surviving this man made calamity. Business institutions are finding it very difficult to cope up with the crunch of liquidity and low consumer confidence. Off-shoring firms, especially Info-Tech and BPO sector are severely blemished. Manufacturing industry is also finding it hard to run the businesses with such a high cost and low return ratio. India may survive these crises by whisker as did in year 1999-2000, but its impact on “aam aadmi” could not be avoided as it has already started taking toll in almost every single house hold in India. Many experts have started making prediction about the revival of the global economy soon. We hope it will, but consequences will leave its impression for many years to come.
Recession has hit salaries, lowering the earning potential. Though there are consumers in the market but the actual capacity of the consumer to buy is almost nil. Be it an Auto Industry or an Education Industry, recession has effected all.
In India due to lack of overseas demand for Indian goods and services, the export industry and the production driving it has slacken, throwing labour out of their jobs. In a scenario of lack of demand, the goods and service would be sold at a loss, bringing in lesser cash realised in the market making people poorer.
As the markets are disrupted the effect shows. Unemployment is the greatest dread of any man. How will he feed his family now? Expatriates are being shown the doors. Even the America which has been home to many people is now turning them out.
A cut in the weekly budgets has changed the priorities of a common man. Worst effected are the female employees, which felt the winds of change first as they are more vulnerable. They know they will be laid off the jobs. It is difficult to believe, but it is true. Women who work as receptionists, doing odd jobs in the office, public relations and communications are picked out when downsizing is done. Recessions have the tendency to touch sore spots of business. Those which are no longer viable are shut off. For instance publications that are now low on subscription, advertising and sales get the first cut. Most companies spend large sums on advertising in print and electronic media. The PR companies have to work on tighter budgets with maximum mileage. Chances are that different agencies that were used for different products are now merged. A single agency is given the job to do. Staff in the office faces retention as now the work load is divided between only the most necessary employees. The ones left can also forget about the raise in salaries and also work hard.
“As the recession lengthens, more men are becoming unemployed and assuming the role of Mr. Moms. That leaves a lot of working moms as sole breadwinners. This is due to the fact that men are usually employed in the financial sector and other businesses closely linked to the current credit crunch”, says Guneet Singh, Regional Head in Sales and Marketing of a private Multinational company.
“On an average, one earning member of a family has lost his/her job, thus affecting the family structure. The families are now made to do more with less”, he adds.
It's not just adults who have been affected by the economic recession we are experiencing; children too have had to withstand all sorts of changes due to our current economic position feels Komal Chawla, a working woman. “ Whether a pleasant gift last year were not as plentiful as usual, to the forgoing of family vacations, to even less food available for eating, every family is feeling the heat. I have not met a single person in the past six months who is not suffering substantially from the economy. Unlike 911, where a particular trauma "shocked our system" causing some, but not all people, to struggle, this time, everyone is feeling it and anxious on some level”, she says.
“ The reduced spending by the consumer means companies have to reduce their output. If this happens for long enough it will mean a reduction of jobs. When people become unemployed, they typically stop spending. The more jobs are lost, the less the consumers consume. The less the consumers consume, the more jobs are lost. It turns into a vicious cycle”, explains Harmohan Singh Sethi, a resident of Sector 21.

“This recession has adversely affected the life of students as this has led to the decrease in employment opportunities available for us. Besides freezing the jobs, the companies have started cutting salaries and the jobs of their staff”, opines Sonia Singh, a student of a private college.
A year gone, but still the effect remains. . Let’s hope for the best, but prepare for the worst.