Learning the Lessons of the Global Recession

This social skill of compensation is crucial in the fast paced modern environment, and it enables an individual to survive the conditions of a recession by modifying their spending patterns and reducing their expenditure. Once the recession ends, they are insightful enough to take these lessons and developed budgeting techniques into the recovery and more prosperous times, which will in turn allow them to build a savings plan and contingency for any future cycles of boom and bust. Older members of society without this skill are more likely to struggle through a recession, as they struggle to adapt to unemployment and making changes to their spending habits.

These results and their consequence are extremely positive to the future of the economy. Responsible spending by consumers and businesses through prosperous times will help assuage the effects of any future recessions, as savings and reduced consumer debt will allow the members of society to adapt far easier to the loss of unemployment or fluctuating values in their property and material possessions. Of the young adults surveyed, 98 percent suggested their desire to save more of their disposable income and reduce any affiliated debts, which makes this demographic twice as likely to save their money than their parents. This fact alone support the notion that the recession has actually helped to create a more positive financial outlook for the long term.

While economies will always fluctuate, it is wrong to assume that the extremities of recession and recovery are unavoidable, as they are in fact only consequences of each other. They occur because people become transfixed with surviving a recession as best as they possibly can, without developing techniques and knowledge to battle the concept methodically. Then, when they emerge into the subsequent recovery and period of economic prosperity, they are far more likely to compensate for the times of hardship with increased financial spending and a less responsible attitude to debt. This creates the vicious cycle that is accepted in economic circles, and leaves too many citizens vulnerable to recession and unemployment.

This way of thinking and behaviour needs to be encouraged by the government, who can learn from the positive and adaptable nature of the people that it represents. By delivering a considered and thoughtful budget to its society, government and financial bodies can maximize the levels of optimism and financial responsibility prevalent amongst young adults to foster a more consistent and predictable cycle of the economy. While this is an ambitious and difficult to maintain aspiration, it is manageable as long as lending organizations and their regulators support the concepts of responsible spending and frugal living. Through a successful coalition between the government and its subjects, the accepted nature of a global recession may become a thing of the past.

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