The Troubling Reality of Economic Hard
Times
Economic hardship and economic hard times
are the most debilitating things that can happen to people, businesses, and
countries around the globe. No one wants to go through them and no one ever
wants to see anyone they know experience it, either. In order to prevent that
from happening, here’s what you need to know about the causes of economic
hardship in a country as well as some possible ways to combat it so that fewer
people will be affected by it in the future.
What Are the Causes?
When considering what causes economic
hardship, it’s easy to look at big-picture macroeconomic factors like
globalization, industrialization, and technological innovation. These are
certainly not entirely irrelevant, but they’re also too distant from
individuals’ day-to-day lives to be considered the main cause. If we really
want to understand why certain countries suffer from chronic economic hardship,
we need a more micro approach. The truth is that there are numerous—and often
surprising—causes behind poor economic performance.
surprising—causes behind poor economic
performance.
Many are surprised to learn that even in
wealthy countries, economic hardship is not always a result of joblessness. In
fact, many citizens in developed countries work multiple jobs but still can’t
find their way out of economic difficulty. Poverty and difficult economic times
are just as likely to be caused by an individual’s involvement in an
underground economy—where goods and services are exchanged for cash or some
form of compensation—as it is to be caused by unemployment or underemployment.
And because most illegal economies are unregulated, there aren’t any income
taxes paid on them which leaves governments struggling with severe budget
shortfalls.
How Does it Affect You?
The global financial crisis may seem like a far off concept, but it has affected every corner of our lives. The effects have been particularly difficult on low-income families as they are often most vulnerable to job loss and reduced income. In fact, according to a U.S. Census Bureau report, more than one in three children under age 18 (36 percent) live in families struggling with economic hardship. When kids experience hard times it is not only their current health that is put at risk; their chances for long-term economic security are diminished as well.
What Can We Do About it?
In most economic hard times, citizens are
quick to point fingers at politicians, corporations and unions for their
troubles. But how much blame should actually be assigned to them? While it’s
important that we keep a close eye on these groups and hold them accountable
for their actions, perhaps we shouldn’t forget about ourselves. What can each
and every one of us do about our nation's economic hardship? Some people want
to boycott certain products or services, but are those truly effective
long-term solutions? It's important that we encourage self-responsibility in
order to improve our economy. Here are some ways you can help:
Increase tourism: Tourism is a great source
of revenue for many countries around the world. We can do so by opening our
borders to more tourists, increasing advertising and improving customer service
in hotels, airlines and other tourist-related industries. All these things will
help make it easier for people to visit our country, learn about its culture
and understand what we have to offer.
Encourage innovation: Every entrepreneur knows
that it's important to be innovative, but some countries don't have that
culture yet. They're used to doing things in a certain way and they're not
open-minded enough when it comes to trying new things that might not be
successful at first.
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