The recent recession has many of us in a situation worse then we were in just a few months ago. The media has jumped all over the recession and has even compared it to the Great Depression in some respects. So, is it all doom and gloom? Actually no, there are a lot of positive aspects about a recession that often goes unnoticed, and is seldom discussed. Below are 6 ways that any recession can have a positive impact on society as well as the economy:
1. Global Coordination Improves
Just look at how much the US has coordinated with other countries in this crisis. Global coordination is important for efficient government and world economies.
2. Gets Societies Attention and Wakes Them Up
You can’t say that you haven’t changed your way of life at least a little since this recession started. From ripping up credit cards, to forgoing that purchase of the designer handbag, Americans are becoming smarter with their money, and more frugal.
3. Efficiencies Develop
As companies cut back on expenses, and so does the general public on a personal level, they learn to spend less, and get more out of what they already have. Unfortunately this means companies may lay off workers too though.
4. Financial Reform
The government learns a new lesson after each and every financial mess. They learned a lot from the Great Depression, and developed new regulations to protect us, just as they will with the current economic mess.
5. Prices Fall
Everything from airline travel, to gasoline Prices, to home prices, and stock prices have fallen quite a bit. If you have the cash now, you can invest fruitfully, and everyone can take advantage of lower gasoline prices for the time being. Those who could not afford a home just 6 months ago, may now be able to both get a low interest mortgage and afford the payments.