Sample Essay
Inflation can increase the price of any commodity within no time. It is obvious that the price of bread has not remained constant in the last five years. It has increased. The salaries of working employees and revenues of entrepreneurs have also increased so that they can afford things at the new costs. Recession is an economic breakdown which affects the major industries of a country. People lose jobs, businesses close down and buying power decreases as well. This is when inflation takes its worst shape. Prices keep on increasing and people find it impossible to afford everything without using up their savings.
The relation between inflation and recession is direct and one component increases with an increase in the other. Due to recession, people lose their employments and find it hard to fulfill basic necessities. Thus, people selling these commodities increase their prices so that they can generate suitable profits with low sales. This strategy has not worked in the recent recession wave and several organizations have closed down their operations completely.
If a country is under recession, it should minimize its imports and survive on its natural productions. A massive monetary sum is spent on import duties by most countries. When recession strikes a country, even the biggest organizations reduce their staff. In addition to that, the expensive human resources are released first so that the maximum financial sum can be retained. A suitable strategy should be developed by the governments so that the employment count is not reduced.
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