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.
References
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
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