Annotated Bibliography
Camacho, M., & Palmieri, G. (2019). Do economic recessions cause inequality to rise? Journal
Of Applied Economics, 22(1), 304-320. doi:10.1080/15140326.2019.1620982
This study applies the local projection approach to analyse the economic recession’s impact on income inequality. It elaborates the difference created by the economic depression between the rich and the poor. This is also a major concern of most interviewees regarding how it can impact the overall wellbeing of the people in a society. The economic recession in the long run negatively impacts the lives of the people and it widens this divide amongst the rich and the poor. This study will help in understanding the reasons of rise in inequality due to recession. It will also point out towards the steps that need to be taken in order to minimize the damage of economic recession in terms of economic inequality.
THE, A. P. (2009, Sep 29). Recession widens gap between rich, poor. Charleston Daily
Mail Retrieved from https://search-proquest.com.elibrary.jcu.edu.au/docview/332318078?accountid=16285
This study elaborates how the widening of the gap amongst the wealthy and the poor affects the society on a larger scale. This paper explains the effect upon the US middle-income households due to the economic gap that keep on growing. How the Household incomes have fallen across all income groups. It elaborates how some cities, were affected less as those cities are different in nature. Hence the gap varies from city to city. Big cities like Atlanta, New York, San Francisco Washington, Miami and Chicago were the ones with the most inequality. This article will help understand how there is more and less economic differences between these cities. Hence it elaborates how the economic recessions keep growing in some cities while not applicable in some other cities.
Burgard, S. A., & Kalousova, L. (2015). Effects of the great recession: Health and wellbeing. Annual Review of Sociology, 41(1), 181-201. doi:10.1146/annurev-soc-073014-112204
This study elaborates a gap as per the latest evidences linking recession to population’s health and wellbeing. Unemployment is one of the major problems brought on by the global crisis. This article is showing that employment losses since the recession are worse and how economic hardships and joblessness also contribute to poor health. Suicide rates have also increased in many parts of the country. Some studies indicate that people who undergo the issues in labor markets, housing that proliferate in the time of recession suffers adverse health effects. On the other handsome studies show that mortality rate declined soon as the economic predicament worsens. In the light of new results, this analysis synthesizes the evidence from distinct research and traditions.
Zorn, M. L., Norman, P. M. (2017). Cure or curse: Does downsizing increase the likelihood of bankruptcy? Journal of Business Research, 76, 24-33. doi:10.1016/j.jbusres.2017.03.006
Downsizing is a growing global practice, but researches done on the downsizing effects have generated mixed findings. To add to this discussion, they point out regarding corporate reforms in order to examine how the large-scale changes involved in downsizing have adverse effects on businesses. These effects are hard to reverse and eventually raise the risk of bankruptcy. Businesses are cutting jobs to cut costs. The approach will reduce the company’s chance of bankruptcy. Downsizing also raises the risk of losing the job. But downsizing may not be the right way to do it. The article notes that unemployment will also boost a company’s risk of bankruptcy.
Wei. (2019). International talent inflow and R&D investment: Firm-level evidence from China.
Economic Modelling.
Companies adopt the practice of Downsizing to reduce the impact of recession. Companies will rely on benchmarks for talent. This literature will reinforce my idea regarding the impact of hiring new talent for making the predicament better. Highly qualified workers with bilingual backgrounds may be able to improve productivity. Adding to that it plays a significant role in the process of specializing on cross-border knowledge.
Evidence for: The government should control economic development.
Camacho, M., & Palmieri, G. (2019). Do economic recessions cause inequality to rise? Journal of Applied Economics, 22(1), 304-320. doi:10.1080/15140326.2019.1620982
- Camacho conducted a systematic survey of 43 countries from 1960 through 2016; they used a local prediction method to examine the impact of economic recessions. Even though they recognize both the business-cycle and the growth-cycle recessions, yet once controls are applied to the model, yet fail to find evidence of substantial impact of recession on income distribution. The Great Recession sparked a renewed interest in the possible actions of inequality in the business cycle. Atkinson and Morelli, among others, realized that banking crises appeared to end up with increases in income inequality. The economic recession in the long run negatively impacts the lives of the people, and it widens this divide amongst the rich and the poor. The unequal distribution of income, regardless of the efforts made by anyone, disrupts society. This study will help in understanding the reasons for the rise in inequality due to recession. It will also point out the steps that need to be taken to minimize the damage to the economic downturn in terms of economic inequality. (Camacho, 2019) Hence the government should correctly control the economic development and make efforts to reduce the financial problems caused by economic inequality. The predicament can’t suddenly become perfect for everyone yet fact of the matter is, governments need to take control over the economic policies.
THE, A. P. (2009, Sep 29). Recession widens gap between rich, poor. Charleston Daily
Mail Retrieved from https://search-proquest-
com.elibrary.jcu.edu.au/docview/332318078?accountid=16285
Associated Press conducted a study that elaborates on how the widening of the gap amongst the wealthy and the poor affects the society on a larger scale. The recession has hit particularly the middle-income groups and those that are low-income families the hardest. It widens the economic divide between the wealthiest and poorest Americans as an immense amount of cuts have ravaged the household finances. Hence the economic downturns keep growing in some cities while not applicable in some other cities. The wealthiest American’s are just 10% of the economy. The ratio increased to 11.4 from 11.2%, which depicts the fact that the recession makes the more prosperous wealthy. The Median of incomes as compared to the previous years for middle-income groups also decreased from 52,163 USD to 50,303 USD. This negatively impacts the overall predicament and hit the bottom level back in 1997. Findings also depicted that people earning over 180,000 USD showed an increase of 3.58 the median income of the middle-income groups that was higher as compared to the other parts of the country. (A.P, 2009) These findings lead to the federal government making new rules for executive pays leading to the higher number of taxes to be implemented on these high-end income sources in health care. If government across the globe make reforms and the tax system is rectified, these issues can be reduced from occurring. The economic imbalance can be reduced from where it is now. This economic instability in the long-run negatively impacts the whole society.
Evidence of: Business Failures
Zorn, M. L., Norman, P. M. (2017). Cure or curse: Does downsizing increase the likelihood of bankruptcy? Journal of Business Research, 76, 24-33.
doi:10.1016/j.jbusres.2017.03.006
M Zorn in this article elaborates that Downsizing is a growing global practice. Researches done on the impact of downsizing have generated mixed findings. To add to this discussion, these searchers did a viewpoint regarding corporate reforms in order to examine how the large-scale changes involved in downsizing have adverse effects on businesses. These effects are hard to reverse and eventually raise the risk of bankruptcy. Businesses are cutting jobs to cut costs. The approach will reduce the company’s chance of bankruptcy. Downsizing also raises the risk of losing the job. But downsizing may not be the right way to do it. The researchers also investigated what factors, if any, could minimize the probability. To do so, they build a resource-based view to imply that valuable resources will minimize the risk of bankruptcy triggered by downsizing. We consider support over a selection of publicly traded companies for our theorizing. With the unemployment rising, companies won’t be able to sustain as skilled workers will be leaving companies and this would end up making the whole predicament. As per the results of the study, downsizing companies are much more likely to declare bankruptcy than companies that are not engaged in downsizing, and that intangible resources are helping to minimize that possibility. The physical and financial capital is also very important in finding out the outcomes of the predicament yet there was no solid evidence found regarding these that aid in helping sort the predicament.
Evidence of: Combating recession by hiring new talent
HaoWei. (2019). International talent inflow and R&D investment: Firm-level evidence from China.
Economic Modelling.
HaoWi in a study discusses the companies adopt the practice of downsizing with an aim to reduce the impact of recession. These companies rely on talent as their benchmarks. Highly qualified workers that have bilingual backgrounds may be able to improve productivity. Hence, the research found evidence that supports the idea of breaking barriers across the globe. These results stem from two mechanisms: getting talent from across the world & improving the development of human capital. It is also an integral to create a diversified labor force. Furthermore, the impact of promoting R&D is greater if companies are based in Eastern China rather than in other areas, that where there are small and medium-sized companies. The suggestion was regarding the inclusion of international talent that can aid in introducing innovation and creativity. (HaoWei, 2019) Immersive ideas will be generated that will ultimately impact the whole predicament in the long-run. Another element highlighted is the inclusion of R&D department. This department can aid in creating breakthroughs towards strategizing to generate maximum output from minimum budget. More and more skilled individuals can be introduced that aim to create a difference with their idea. This will not only help in fight predicaments such as recession by creating new jobs but also stop the overall system from collapsing.
Burgard, S. A., & Kalousova, L. (2015). Effects of the great recession: Health and wellbeing. Annual
Review of Sociology, 41(1), 181-201. doi:10.1146/annurev-soc-073014-112204
- Burgard, in its study, elaborates on the impact of the great recession: on the health and wellbeing of the people. Unemployment is the cause of stress and depression that negatively impacts the overall wellbeing of the general population of the country. Some studies have assessed the correlation between recessions and health by analyzing how the various patterns in measures of the economic cycle follow changing mortality or sickness levels. Reviews from the 1920s revealed the very counter-intuitive silver lining with lower average death rates during the times of recessions. Until then, a trend has been observed in the United States — through which the death rate rises through expansions and decreases in recessions. Unemployment is one of the major problems brought on by the global crisis. Suicide rates have also increased in many parts of the country. Hence serious measures need to be taken to control the overall predicament from worsening. Another element is that the economic downturns also affect government and local revenues, increasing pressure to curb budget deficits and reducing borrowing. Hence unemployment should be controlled by hiring new talent that can make a positive impact on the overall economic predicament. (Burgard, 2015) Unemployment should be controlled by hiring new talent that can make a positive impact on the overall economy.
Introduction
Economic recession stands as one of the most devastating issues across the globe. The recession has many consequences that lead to overall economic instability in the country. It broadens the divide within society between the wealthy and the poor. The great recession that occurred in the 1930s had an overall impact on the economies across the world. The crises cost millions of people their jobs, and they lost their whole life savings. There was a decline in economic growth to an extent where people became bankrupt. Companies cut staff off to lower the expenditures. This approach will ease a financial problem for the client, yet this is a temporary solution, and leads are significant consequences of overall economic growth. The recent recession that started in the US from December 2007 had an adverse impact on the global economy. The unemployment rate has increased by 10%. (mlr, 2018) and many financial institutions also go bankrupt due to income disparities. The biggest problem with this crisis is unemployment & fresh students find it challenging to get a job. Employment pressures continue to rise that reduce the impact of the recession. Young talent that gradates is uncertain about the economic predicament and how it will impact their future. This study will explore how to reduce financial instability, the gap between rich and poor, and suggest solutions to counter unemployment.
Working thesis
Economic depression is inevitable in the course of economic development. Economic inequality, corporate financial crisis, and employment difficulties come side by side with economic depression wherever it occurs across the world. To minimize the challenge of business growth induced by the economic crisis, the government should be active in economic development activity, the university should allow the students to take internships in advance, and the organization should promote and use talent.
Discussion
As per the findings, recession creates a difference between the rich and the poor. The research done by Atkinson and Morelli depicts the realization that the financial crisis appeared to end with increasing income inequality. In the long run, the economic crisis has a negative effect on people’s lives, and this divide among rich and poor is widened. The uneven distribution of wealth, regardless of anyone’s efforts, destabilizes the whole society. This research helps to explain why inequality is soaring, and it also points out the steps that need to be taken to minimize the damage due to the economic downturn in terms of economic inequality. The role of the governments should be to focus on improving the life quality of the masses. There is a need to control the economic development for only a few numbers of people. The distribution of wealth needs to be equal. The governments need to make efforts to reduce the financial problems being faced by the masses due to this economic inequality.
The recession has struck Middle-income groups and low-income families. It has widened the economic gap between the wealthiest and poorest Americans, as a large number of layoffs devastated household finances. Hence the economic downturns in some cities tend to rise while in some other cities they are not relevant. The wealthiest Americans are just 10 percent of the population. The percentage rose from 11.2 percent to 11.4, which reflects the fact that the crisis is making the wealthy affluent. Compared to previous years, the median of income for middle-class classes also dropped from USD 52,163 to USD 50,303. This has a devastating impact on the prevailing situation and reached the lowest stage back in 1997. Hence recession helps in making the lives of rich people better. This is a point that needs to be addressed that the economic system should be made to strengthen the financial predicaments of the non-privileged as compared to the ones that already have a considerable amount of resources available.
Highly skilled new talent with bilingual experience can turn out to be a perfect addition to the economy. The impact of promoting R&D is more significant if companies are based in Eastern China rather than in other areas, that where there are small and medium-sized companies. The suggestion was regarding the inclusion of international talent that can aid in introducing innovation and creativity. With the inclusion of new and creative minds, the overall production quality can increase. Immersive ideas will be generated that will ultimately impact the whole predicament in the long-run. More and more talented young talented individuals that wish to make a difference with their concepts need to be hired. This would counter the issues such as unemployment and help generate new jobs but also deter the deterioration of the economy.
Unemployment is the cause of stress and depression, which adversely affects the overall health of the country’s general population. Any researchers have examined the link between unemployment and wellbeing by reviewing whether the changing trends of economic cycle indicators match increasing rates of death or illness. In the United States, a pattern has been identified so far — in which mortality rates increase across increases and decreases in recessions. Unemployment is one of the significant issues that the financial economy is producing. In other parts of the world, too, suicide rates have risen. Therefore drastic steps need to be taken to mitigate the aggravation of the overall situation. Another factor is that economic downturns can affect national and municipal budgets, rising pressure to reduce budget deficits. Unemployment also has an adverse impact on the health of the people that leads to psychological and other health issues as well.
In the long run, the global crisis has a negative effect on people’s lives. It is also adversely affected by the unfair distribution of income, irrespective of any effort made by everyone. There tends to be a rise in inequality due to recession. The disparity between rich and poor creates by the economic downturn is leather. It may affect the overall health of people within a community. The financial recession has a devastating impact on the lives of people in the long run. It is also adversely affected by the unequal distribution of profits, irrespective of any effort made by all. Despite the recession, inequality continues to increase. Hence steps need to be taken to make the overall economic predicament better.
Entrepreneurs need to fill in with their ideas and how the overall world economic predicament can be made better. The number of billionaires has increased over the years, yet so has the percentage of low-income groups. Adding to that, talent management is the key in order to make the best use of their skills. If talent is not hired and appointed for the skills that they are best at, that can also go to waste. Universities need to play a role in making it happen and send the students for internships to learn the business and make the best use of the knowledge they gain at schools to be applied to their jobs. The need to emphasize on shaping their minds as creative entrepreneurs that can end up generating new employment opportunities for others.
Conclusion
It can be concluded on the fact that the difference created by the economic depression between the rich and the poor is leather. It can impact the overall wellbeing of the people in a society. The economic recession in the long run negatively impacts the lives of the people. The unequal distribution of income, regardless of the efforts made by anyone, also affects it adversely. There tends to be a rise in inequality due to recession. Taxes need to be imposed in order to impact the whole economy. Unemployment is one of the significant issues that the financial economy is producing. In other parts of the world, too, suicide rates have risen. Therefore unemployment can be managed by hiring new talent who can come up with entrepreneurial ideas. It will also point out the steps that need to be taken to minimize the damage to the economic downturn in terms of economic inequality.
Furthermore, the widening of the gap amongst the wealthy and the poor affects the society on a larger scale—the US middle-income households due to the economic weakness that keeps on growing. The R & D department needs to be formed, fully incorporated, and their role should be designed in alliance with the skills of the team. This will help in maximizing the value of the team’s efforts. Yet the gap varies from city to city. Hence the economic recessions keep growing in some towns while not useful in a similar fashion in some other cities. Therefore extreme steps need to be taken to mitigate the aggravation of the situation caused by the recession. Another factor is that economic downturns can have an effect on national and municipal budgets, rising pressure to reduce budget deficits. New talent needs to be incorporated in order to cater to the challenges, and entrepreneurship needs to be promoted in order to face and counter this predicament. This divide needs to stop; otherwise, it will keep creating a significant amount of unrest in the society.
References
A.P, T. (2009). Recession widens gap between rich, poor. Retrieved from jcu.edu.au: https://search-proquest-com.elibrary.jcu.edu.au/docview/332318078?accountid=16285
Burgard. (2015). Effects of the great recession: Health and well-being. Annual Review of Sociology, 181-201.
Camacho. (2019). Do economic recessions cause inequality to rise? Journal of Applied Economics, 304-320.
HaoWei. (2019). International talent inflow and R&D investment: Firm-level evidence from China. Economic Modelling.
mlr. (2018, 4). Great Recession, great recovery? Trends from the Current Population Survey. Retrieved from https://www.bls.gov: https://www.bls.gov/opub/mlr/2018/article/great-recession-great-recovery.htm
Zorn, M. (2017). M. S. (2017). Cure or curse: Does downsizing increase the likelihood of bankruptcy? Journal of Business Research, 76, 24-33.
