jueves, 6 de noviembre de 2008

CAUSES OF THE RECESSION

Actually we are living in a world that is affected by economical problems. The first country and the most affected by the recession is the United States because the construction sector began to present the economical problems.
The first cause of the recession has been that the government increase taxes and for this reason people can´t spends the same amount of money buying products, then they prefer keep that money saved.
The second cause is that people decide to consume less, for this, companies decided to produce less and for this reason, enterprises hire less people, and fire a lot of employees producing unemployment.
Another cause and the most important is the inflation, that is when the prices of products increase constantly, creating less consume of people and consequently the production decrease affecting an important part of the economy.
Finally, we can say that the recession causes a lot of problems, not only in the economic field, but also in the social, cultural and political aspects, because this problem produce psychological effects in people and this generates that the relations between persons and between countries begins to be affected and in this way affect the world economy.
Also we can say that one solution can be that the government puts more money in the society for give a possible answer for recession and come back to the normal situation of the economy.


ANA MARIA SUAREZ MARIN
GERARDO CARDENAS BLANCO

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