I wanted to write about the recession but never got the time.
Today I got an email forward from my friend and some good soul has taken the time to write about it. Since this was pretty much what I wanted to convey, I am sharing it with you.
What is Recession?
This story is about a man who once upon a time was selling Hotdogs by the roadside. He was illiterate, so he never read newspapers. He was hard of hearing, so he never listened to the radio. His eyes were weak, so he never watched television. But enthusiastically, he sold lots of hotdogs.
He was smart enough to offer some attractive schemes to increase his sales. His sales and profit went up. He ordered more a more raw material and buns and sold more. He recruited more supporting staff to serve more customers. He started offering home deliveries. Eventually he got himself a bigger and better stove. As his business was growing, the son, who had recently graduated from college, joined his father.
Then something strange happened.
The son asked, "Dad, aren't you aware of the great recession that is coming our way?" The father replied, "No, but tell me about it." The son said, "The international situation is terrible. The domestic situation is even worse. We should be prepared for the coming bad times."
The man thought that since his son had been to college, read the papers, listened to the radio and watched TV. He ought to know and his advice should not be taken lightly. So the next day onwards, the father cut down the his raw material order and buns, took down the colorful signboard, removed all the special schemes he was offering to the customers and was no longer as enthusiastic. He reduced his staff strength by giving layoffs. Very soon, fewer and fewer people bothered to stop at his Hotdog stand. And his sales started coming down rapidly and so did the profit. The father said to his son, "Son, you were right". "We are in the middle of a recession and crisis. I am glad you warned me ahead of time."
Moral of the Story: It's all in your MIND! And we actually FUEL this recession much more than we think.
Yes a many companies like IT companies suffered but it was because of their irresponsible behaviors(for e.g. just hiked the salaries like crazy in a bid to get the best skilled staff). It is a another topic in itself. How they promoted the very employees they laid off to spend more and life a lifestyle, by increasing salaries, fueling the economy.
Sometimes I think about a joke, where 4 people were asked what is 4+4. To cut is short the last person was an economist. He just closed the doors and asked the employer "How much do you want it to be".
I always feel that these cycle do not occur they are created for various reasons.
In the boom a certain class of people make money while the "working class" just thinks they are making more money, when all they are doing actually spending more money.(I know you need more money to spend more but try to catch the point here).
When the crash "happens" it is this class of people who already know it is going to happen take the precautionary measures and then during the depression again go on a buying spree increasing their wealth multiple times.
Well. all I can say that with every other problem in life even if the recession is taken positively it will clear out sooner, especially in India.
