Is the recession good for poor people who still have jobs, but bad for others who have lost their jobs?
Nov 07, 2008 in
Economics
Instantpainrelief2008
During a recession, gas price goes down because people drive less. The cost of consumer goods also goes down because the cost of transportating those goods is less, and because people spend less money and buy less. This makes consumer goods more affordable for poor people who still have jobs. Agree or disagree?
During a recession, gas price goes down because people drive less. The cost of consumer goods also goes down because the cost of transportating those goods is less, and because people spend less money and buy less. This makes consumer goods more affordable for poor people who still have jobs. Agree or disagree?
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One comment
Edward G on November 9, 2008 at 8:36 pm
True, I think, as a snapshot at a given point of time.
But lower prices hurt the businesses that furnish the goods and services, putting them at risk of going out of business or not making a profit. The result of either of these consequences is to put the jobs of their employees at risk and increasing the probability that they will be put out of work or have their wages reduced.