The International monetary fund(IMF) chief on Friday announced that the world is going to face the Global Economic Recession. She estimated that this recession would be worse than in 2009. She lauded the $2.2 trillion financial help and also said that this would help the Americans to withstand in that situation. First of all, let us know what is a recession.
When people stop spending money. It usually causes economic downfall. And this phenomenon is called a recession. This happens in a country when there is a terrorist attack, political emergency, medical emergency, and economic emergency. In 2009, the USA faced an economic recession as it gave loans to those businessmen who have a very bad credit history. As they could not return back the money they took from banks, the government gave their funds to stabilize banks. During this stage, many private, public firms went jobless because of the lack of projects.
As there were no projects, the companies removed people from jobs because of which many Indians in the USA went jobless and have to return back to India.
Recession impact on Indian Economy:
This 21-day lockdown, which is expected to be extended because of the Coronacrisis have already created a disturbance in the life of poor and below poverty line people. This is a cyclic process. Every field stopped working in India coming from Agriculture, Manufacturing, Trade, and commerce etc., This all happens as people have no money to invest. For example, let us consider the real estate field. When people don’t have money they will not invest in buying lands and constructing buildings. The contractor, workforce, steel vendors, steel manufacturers, cement industry, sand exporters, lorry owners, lorry drivers, Engineers, Architects, Electricians, Mechanical workers lose their jobs during this recession period.
When small retail shops, companies, theatres get shut down, this will affect software companies will lose the projects which directly will impact the jobs of engineers working for them. Some big software companies may withstand. For, example TCS, Wipro, Tech Mahindra, CTS which manage government projects definitely will not affect. But, there will be surely an impact if the same recession continues in other countries. These companies may lose projects from them and those who are working on these projects may lose their jobs.
As announced about the Global Recession by IMF chief yesterday. Every country declared lockdown because of the coronavirus pandemic. And if this persists up to July, for sure many of them are going to be jobless as it happened in 2009. The governments are taking steps to make the market moving by providing financial assistance to people through welfare schemes. The Pradhan Mantri Garib Kalyan Yojana in India and the $3000 to all account holders in the USA are examples of such welfare schemes. But, even the government can’t bear the burden of this crisis continues.
Helping the country and saving jobs is in your own hands. Just stay at home don’t get affected by corona. Within a few days, you would be back in your work and everything will be all right.