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Learning the Lessons of the Global Recession

When the individuals of a country are afflicted by the hardship of a recession, the very suggestion of prosperity and optimism can seem foreign to the concept of logic. As unemployment rises and jobs are cut from the private and public sectors, so too consumer spending power diminishes to create a vicious cycle within the economy. However, there are signs emerging through the gradual recovery that adults in the US have not only taken heed of the financial portents of the recession, but also developed a positive attitude in moving forward in society.
A recent survey of young adults aged between 18 and 34 has revealed that this demographic have learned important financial lessons through the recession, and in fact resolved to save more of their disposable income and through budgeting and reducing their levels of impulse purchases. The published findings also suggest that this generation of citizens have also developed an increased responsibility concerning their debts and burdens, and are motivated to committing more money throughout 2011 to reduce their financial duty appropriately. Aside from the bare statistics, this survey also reveals some key points concerning young adults living in the US.

Adapting to Social Conditions
One of the most significant conclusions that can be drawn from the survey is the malleable and adaptable nature of young adults living in contemporary society. It is a well versed theory of psychology that young adults are more adaptable to the change in social conditions, and also more likely to modify their behavioural trends to a more positive end. This capability to conform to changing environment and conditions is believed to diminish over time, as adults more experienced in life are either too comfortable with their own wisdom or embittered by specific instances of hardship.

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.

Creating a New Cycle of Prosperity
The cycle of boom and bust in well known, and this fluctuation between the two is the result of carefree spending and financial abandon when an economy is prosperous, and drastically reduced financial outlay during times of fiscal hardship. This is hardly ideal, and not conducive to the health of society and its individual members. However, the published statistics suggest that the USA’s young generation of adults are motivated and driven to modify these trends, and in doing so create a brand new cycle of prosperity and consistent consumer spending. This would be revolutionary in financial history, and destroy the notion that boom and bust is an inevitability in economics.

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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Navaid I. Syed is the owner and CEO of / ExcitingAds! Inc. He is a medical doctor and was born in Mirpurkhas, Sind, Pakistan, on July 31, 1964. He graduated from Liaquat University of Medical and Health Sciences, Jamshoro, Sind, Pakistan, in 1990. He is Educational Commission for Foreign Medical Graduates, Philadelphia, PA, USA, certified.

9 thoughts on “<span>Learning the Lessons of the Global Recession</span>”

  1. I’ve been trying to find this type of post for a while. I am publishing a school report about this and this is going to help me. Thank you.

    1. Thank you for your time and support. Discussion and the sharing of opinions is crucial to improving awareness of a subject.

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