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What good can come out of recession?
Despite all the pessimism during recession, there are good things that can come out from it.
First, we need to recognize that like cycle-of-life, economy always goes through certain
stages or cycles (boom, recession, recovery and boom). And this has been the case for
much of past century.
Going back to our question, what good can come out from recession? For one, recession
motivates businesses to come up with new cost-cutting strategies. They come up with new
ways to handle the same activities and produce the same or even better products, but in a
more cost-efficient way. For example, businesses more use technology for correspondence
and sending documents. They do not print emails or hand out files before meetings as they
used to do, but instead use overhand projections. Other companies come up with a new
way to package their product that seemed not possible just a year ago.
Creativity and innovation does not suffer that much during recession as people think instead
it takes a new direction. Entrepreneurs find ways to work as productively as they used to
better utilize their available capital. There is definitely less room for error. Venture capital
firms give chances to business that they are most certain will make it. Business environment
is more focused and goal oriented during recession than in a good economy due to less
available funding.
Consumers relearn to enjoy little things. A birthday card drawn by children or a cake from
your loved ones. Yes, our birthdays and vacations may be less luxurious, but become more
thoughtful. This year many families most likely will choose camping or other less expensive
vacations over travel to exotic destinations. And they will try to make best out of it because
people tend to focus on what they have than on what they do not have during hard time.
Family bonds become a source of strength during recession. Outdoor activities become
more popular. Suddenly, you see more couples and dates hiking, biking, and taking a walk
than ever before. Children play outside more, since buying new video games is not in
parents’ budgets anymore. Families spend more time together, interact, and learn to make
simple things fun.
So despite all the negatives and difficulties that come with recession, there are positive side
as well. And on the bright side, recession is always temporary. It is just a certain business
cycles that we have to live through and learn.
Despite all the pessimism during recession, there are good things that can come out from it.
First, we need to recognize that like cycle-of-life, economy always goes through certain
stages or cycles (boom, recession, recovery and boom). And this has been the case for
much of past century.
Going back to our question, what good can come out from recession? For one, recession
motivates businesses to come up with new cost-cutting strategies. They come up with new
ways to handle the same activities and produce the same or even better products, but in a
more cost-efficient way. For example, businesses more use technology for correspondence
and sending documents. They do not print emails or hand out files before meetings as they
used to do, but instead use overhand projections. Other companies come up with a new
way to package their product that seemed not possible just a year ago.
Creativity and innovation does not suffer that much during recession as people think instead
it takes a new direction. Entrepreneurs find ways to work as productively as they used to
better utilize their available capital. There is definitely less room for error. Venture capital
firms give chances to business that they are most certain will make it. Business environment
is more focused and goal oriented during recession than in a good economy due to less
available funding.
Consumers relearn to enjoy little things. A birthday card drawn by children or a cake from
your loved ones. Yes, our birthdays and vacations may be less luxurious, but become more
thoughtful. This year many families most likely will choose camping or other less expensive
vacations over travel to exotic destinations. And they will try to make best out of it because
people tend to focus on what they have than on what they do not have during hard time.
Family bonds become a source of strength during recession. Outdoor activities become
more popular. Suddenly, you see more couples and dates hiking, biking, and taking a walk
than ever before. Children play outside more, since buying new video games is not in
parents’ budgets anymore. Families spend more time together, interact, and learn to make
simple things fun.
So despite all the negatives and difficulties that come with recession, there are positive side
as well. And on the bright side, recession is always temporary. It is just a certain business
cycles that we have to live through and learn.
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