Wednesday, July 3, 2013
Essay on Effect of Economic Crisis on People's Life
Effect of Economic Crisis Essay
Aside from war and health epidemic, economic crisis is perhaps one of the most dismal phenomena that man could experience. In fact, it has a wide ranging and long-term implication not just on the government but on its people as well. Many scholars suggest that its impact covers various aspect of the society. This includes education, health, businesses, tourism, environment as well as the overall peace and stability of an entire nation. In fact, the impact of financial crises affects almost every aspect of the society as it has the ability to create a domino effect, ultimately affecting human lives (Parr, 2008, p. 10).
One of the main impacts of economic crisis on people’s lives is in terms of employment. Financial crises often lead to the deterioration of numerous companies and businesses as people tend to hold their money in such situations. This will then cause the company to cut down on resources such as labor and work force in an attempt to save costs. Similarly, some businesses may be forced to shut down as the economy can no longer support the industry. In both situations, employees will lose their jobs while unemployment rate will continue to hike. Historical experience suggests that low-skilled workers as well as youth are two sectors that are more likely to experience the rising unemployment rate. Apart from this, economic crisis, may affect various industries which may also result to job loss and layoffs. This includes industries such as residential constructions, banks and financial institutions, automobile sector, and retail stores among many others (Parr, 2008, p. 10).
Another aspect of the society affected by economic crisis is healthcare. The effects of a financial disaster on healthcare vary depending on the country. However, some government tend to cut back on healthcare budget and funding during an economic downfall. The decrease in budget would therefore mean a dramatic decrease in health care services offered. This includes reduction of pharmaceutical access and affordability as well as a considerable decrease in hospital care services. As such, hospitals are forced to increase fees for medical services and treatments while the price of medicines may increase. Patients on the other hand, will be also forced to make out-of-pocket payments for treatments and medications along with very limited welfare assistance. In addition to this, there will be an increase in rates of healthcare insurance and premiums.
Education is another aspect that will experience that impact of an economic crisis. Experts assert that low-income families will be the first to experience the effects of a financial downturn. Poor households would then cut back on expenses in order to survive, and for most people, education and schooling is considered as an unnecessary expenses. Such as, children will be forced to stop attending schools. Alternatively, high school students will not attempt to enter a university because of the increase and sky-high tuition fees. On the school’s part, an economic crisis would mean a budget cut off from the government. This could therefore lead them to layoff some employees as well as cut back on the salaries of teachers and other school staff.
The scope of impact of an economic crisis is indeed wide-ranging. Employment, healthcare, and education are just some of the many aspects of people’s lives that will be first affected during a decline in economy. As such, it is important for individuals to understand such consequences and do their part in preventing such grim situation from happening.
Parr, S. (2008). “The Human Impact of Financial Crisis. The New School. Retrieved. 3 July
2013 from http://www.un.org/ga/president/63/interactive/gfc/sakiko_p.pdf