Global Recession – Economic Crisis?

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The world is in the grip of an economic crisis and, according to Oprah and every other day-time chat show, we’re all feeling the effect. Everyone is tightening their purse strings and putting off big-budget holidays for staycations (vacations at home). Airlines and travel agencies are offering never-before-seen discounts on flights and accommodation. Mortgage-busting dream homes are being sold left, right and centre and the supermarket aisles are now flooded with budget-conscious consumers who have come in from the restaurants and cafes to cook meals at home.

Some people have lost jobs. I know of many companies that have downsized and re-structured, laying off employees in the process, but I actually know only a few people who have lost their jobs in the process.

I’m not currently working because I had a baby in the last year, but many of the mothers in my mothers’ group have returned part-time to work, several being given work from their companies they can do from home. I was recently contacted by an employer offering me work for a job I never even applied for, so clearly there is work out there.

Of course, my husband and I have had to seriously minimise our spending since I left the workforce and we’re now relying on a single income, but what’s happening in the economy hasn’t really made much difference to us. Yes, my shares plummeted dramatically when the stock market crashed, but they’re climbing back up again and I’m not that worried since I wasn’t planning on selling them anyway, they’re still worth more than they were when I bought them.

People panicked when the stock market crashed. I kept hearing concern about workers’ superannuation being worthless. People were talking about how much money they “lost” through their shares taking a dive, but most of those same people weren’t planning on selling their shares of retiring immediately, so they didn’t actually lose anything. Stock markets go up and down and long-term investments like superannuation will increase in value again when the stock market rights itself.

It just seems to me that a lot of people are panicking and making problems for themselves where no real problems exist. When people panic they act suddenly without thinking, doing irresponsible things like selling all their shares at a low value and saturating an already fragile stock market with an over supply of shares that no one wants.

The way I see it, with governments throwing money around willy-nilly, flights and accommodation at an all-time low, and the stock market and dollar value (in Australia) slowly improving, things are actually pretty good right now, as long as you just don’t panic.

I do concede that there are people who have lost their jobs and times are tough for them, things are rough in a market where you have lost your job because it means that your particular field of employment has been hit and finding a new job will be extremely difficult. For those people this economic situation is terrible. But Oprah would have us believe that everyone has lost their job and goes as far as to suggest that even she has been affected by the economic downturn which is not only insulting to people who really have been affected, but it’s counterproductive to actually helping the economy to improve.