What Really Has Cooked the World Economy
Major portion of the world live in poverty. Unequal distribution of economic growth
led to limiting purchasing power to limited people in the world. Whereas number of industries grew created heavy competition
to attract consumers.
(VoxEU.org) How financial stress spreads – A first comprehensive look at the current crisis - For defaulters of credit card or mortgage, yoga or other spiritual
practices may not be useful. Patience and mental strength may help to think for future. In order to get relief from stress
need fund to pay back. Cut existing expenses and needs, spend only on essentials. This is a lesson so start saving too for
such stressful circumstances.
Food price rises and Crisis!!!! :- Food is the first priority for each consumer, expensive food would prune
consumption of other product’s and services. Food and water has to cheapest of all commodities in order to promote materialistic
world order. Urban related economic growth thrusts agricultural land conversion to cities and to accommodate urban population
Titles from MoviesUnlimited
Economic crisis (oecdobserver.org)
: The long term starts now - Lower global inflation and more affordable energy
and food prices offer some relief, but with the economy still in intensive care and public anxiety spreading, the situation
could worsen. Restoring growth, stability and confidence must remain the policy priority for months to come.
The influence of global financial criris on financial markets - Massive reduction and liquid problems of credit raiting in banks (for the
first time in (Northern Rock) in April and May 2007 and since 2005, the range of problems such as the results of slump in
real estate, influence on devaluation bank assets and manifestation of bankruptive effect on a number of banks have reached
crisis point by September 2008.
In a situation; failing to find way out to overcome existing
economic crisis is called economic stress. Stressful situation is; when excessive pressure is built solve economic crisis.
People who undergo economic crisis may suffer: Restlessness, develop violent behavior, extreme anxiety, attempt suicide, insomnia,
indigestion, gastric and acidity, heartburn, high blood pressure, memory failure, heart attack, mental disorder and so on.
Global economic crisis is an outcome of collective
individuals’ family financial crisis due to escalating cost of essential commodities or lack of financial support due
to reduced income or lack of income. Each country depends on trade with each other that helps generating employment. When one major developed country fails, entire world shatters. Financial stress is when expenditure exceeds more than the
income. Stress is how to reduce expenses and mange with existing income of the family. Rising food, fuel, services, home and
security costs are the major causes for families to undergo stressful situation.
Economic stress reflects through women as they are involved
directly in consumption of household products and services. Men’s role is to hand over what earned during the day, week,
or month to partner. Her responsibility begins to manage home with that money. Managing home for low and middle income group
is not less tensed; this situation escalates further when price of essential commodity soars, cutting essential needs is tough
job. Reducing milk, juice, fuel, food, clothes and other adjustments, defaulting debit or credit card payment and what? Reducing
any of them would affect the home life. This situation is stressful for both responsible members of the family.
First priority of a family is to focus on essential needs.
Shortfall of funds meeting essential needs is first step for both economical and emotional crisis at home. Undergoing pressure
to meet up essential needs leads to stress. Certain essentials are unavoidable, so in order to meet these needs they begin
defaulting insurance, security or home mortgage bills. Blaming game or each member of the family further escalates to deteriorate
family peace. This economic stress shoves stressful family life.
Population and rise in living cost. Major population in this world lives in poverty living with below 1$. 60% of world population lives in distressing condition starve to meet even essential needs and in some countries if get one time food they are fortunate. In such condition overgrowth
of industrialization for meager percentage of population can only create unhealthy competition to catch limited customers.
Unfortunately, one of the reasons of recent economic crisis was originated from defaulting individuals who were unable to
make payment due to soaring prices of food, fuel or other essential commodities and services. Consequence of failing banks
and layoffs only deepened crisis to loose more jobs and salary cuts. This crisis finally affects individual’s family
and relationship. Without money survival is impossible, home demands money and failing to meet is foundation to family skirmish.
Both go mad yelling and blaming each other upsetting relationship. Can also extend to suicidal and murder. Recession and unemployed youth crisis is also helping hand to shoot up crimes.
Many investors (with help of financial or banking sectors)
invested in essential commodities and property markets (without realizing the unseen dark future) to fetch fast bucks. Fast
buck making idea, initiated more and more investors to come forward that escalated situation. Investments soared prices to
many folds of food, fuel, housing and other day to day needs resulted to high inflation to go beyond reach of actual needy
to plummet demand. Individuals in stressful situation had to shift their life pattern to live what they earned, restricted
use of fuel, non essential commodities and services led to investor failure, financial sector collapse, bankruptcies, and
layoffs and so on.
World economy did not collapse in one day; capitalists began
poisoning economy slowly and slowly by investing in essential commodity and service sectors. Lack of demand from needy finally
failed them. Losses in investments shattered investors, directly affecting investment banks and other lending institutions.
Failing entire economy of country that dominated the world trade led to failing trade connected countries. Many countries
economy failed as population of importing countries trimmed consumption due to inflation, job losses and layoffs. Countries
which exported and relied on export of essential and non essential commodities too collapsed as employment down and layoffs
Non essential commodity manufactures had to taste bitterness
of recession. Especially manufacturers of electronics, cars, luxury travel transport, and others had to loose to recession.
Tough market condition was already hammering them through economical products of overseas competitors. Many small and large
industries failed because they did not foresee any such critical slump.
Many industries faced tough labor conditions and high cost
of production and services resulting uncompetitive. In order to cut cost they chose to shift to developing countries or import
from them resulting own people sitting idle. WTO and its free trade law liberalized import and export internationally. Complication
of free trade is, most developed countries had scientific and engineering products for export which consumed least recruits
as were manufactured in auto plants. Other products were not competitive enough to export or the products manufactured were
not suitable to populated and developing countries, so in order to market their brands they setup factories in countries that
helped massive profit and soaring index indicator in share market but did not help increasing standard of life or generating
employment to origin country.
Soaring GDP or stock market, or falling inflation index may
not be helpful to individual families of any country. Their concerns are suitable jobs, suitable earning, affordable price
of essential commodities and services, security and medication. As long as country population meets these, the country is
in right track and has right growth index. There are countries which have comfortable GDP indices, controlled inflation, rising
stock market and yet major percentage of population lives under poverty. This indicates only a little percentage of population
controls and plays with economy. Whereas major percentage of population starves in hunger, suffers in poverty, insecurity
and medication. This pattern of capitalism becomes hazardous when benefit does not reach to the population. Economic failure
is stressful environment to the country and the population. This stressful situation is an invitation to disorder and uprising.
Socialism too has failed in most countries due to corruption, lack of knowledge to plan for rural and urban population together,
dictatorial practices to benefit own party to generate wave of socialism. An uprising would one day introduce a new system
to world order when each citizen’s participation is counted in the country growth. Proprietor, workforce and capitalist
work together would be called “Socio-Capitalism”.