As we sink deeper into the largest economic crisis since the Great Depression, not knowing how to endure being laid off or downsized and how to revive a career is even more critical than usual. Recessions are caused by a number of factors; it is all about people being unwilling to spend money. If you don't spend money, someone else doesn't get paid, they get laid off, they stop buying what you produce, you get laid off, and down it spirals until people start getting enough confidence to start buying again.
The recession caused a sharp decline in new businesses being establish, increasing job market losses and potentially putting future economic growth at risk. New businesses are an important source of new jobs, but without them, there would be no job growth at all.
For example, as the economy spiraled downward Abercrombie & Fitch could not afford to their lower prices. As more people started losing their jobs, the affordability of Abercrombie began to decline and less people purchased the brand. As a result, Ruehl, 30-flagship store chain for young adults shut down in June of 2009. ‘Abercrombie & Fitch fired over 18, 000 workers and lost $26.7 million dollars’ [TIME Magazine]. This continually happened to number of stores around the nation causing millions to lose their jobs, eventually worsening the economy. [continues]
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(2011, 04). The Economy. StudyMode.com. Retrieved 04, 2011, from http://www.studymode.com/essays/The-Economy-651232.html
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"The Economy." StudyMode.com. 04, 2011. Accessed 04, 2011. http://www.studymode.com/essays/The-Economy-651232.html.