In recent human society, money is a basic tool without which the very existence of humankind may be a difficulty. Thus, the mere expression ‘economic crises’ is a wanton menace to individuals and society as a whole. An economic crisis can, broadly said, be a chink in the economic structure and stability of an institution. It is not just a financial mishap. It is much more and can include a total devaluation of the assets of an institution. Institutionally, it affects the labor strength of an affected institution. And then, it hampers the social being of individuals. The effects of economic crackdowns on the individual can be very intense and sensitive; which may even result in suicide as a result of unbearable stress and trauma. Thus, the need for thorough research on the subject of economic crises will always be in place. This paper, therefore, presents a conceptual view of the subject matter. Indeed, a great deal of research is necessary to prompt relevant arguments, suggestions, and practices to reduce the awful impacts of economic crises on society in general, and the individual in particular.
A General Overview of Effects of Economic Crises
Economic crises may occur curbed to an institution or they can occur as an extension from an institution. Considering a bank, for instance, there could be an internal economic crisis that may affect only the bank’s system – and create a bank run – or the crises may affect the network system of the bank through which there is linkage with clients and other monetary institutions. This means, by extension, the economic disaster on the bank could affect other monetary institutions that are directly or indirectly involved financially with the bank. In case the latter happens, apart from the bank’s economy being antagonized, individuals working under the bank may be dropped or sacked. And then, clients to the bank may lose their savings. The effects on the individual would be massive since it may be easier for the bank to get loans, aids, and support than for the individual to recoil from the cramp. It is, therefore, necessary to structure solid machinery which would conduct extensive researches to proffer solutions on how the individual must be helped in a situation of economic crisis.
Knowledge of a vast number of theories on economic crises cannot be denied. Capitalism, Marxist, Minsky’s, and other models have been notable in discussing economic crises. However, financial institutions and financial corporate organizations have to have more well-defined and particular theories that would address instances of economic crunch directly as would affect them. And the efficacies of the theories remain in the depth of particular researches for the institution. Economic crises are attacks on the economy of monetary institutions. In as much as these attacks could spring up spontaneously, their consequences on persons or institutions can be minimized through appropriate researches. Once again, the thesis statement is justified.
There is also the need for one to be prepared for sudden economic crunches. This is necessary to avoid situations of developing anxiety in case of economic depletion. The individual must be reform-minded and particularly focused in times of economic crises. For example, the 2008 US and global economic fall took several persons unawares and swamp them over. But instead of being defenseless at such a time as when there is an economic crisis, it is proper for the individual to return to the drawing board and paper-mark how previous economic crises were dealt with. This can be possible from intense researches. This view has also been supported by Ning (2010).
The effect of economic crises on society and the individual are intense. This paper presents the need for intense research for a better understanding of how to handle such crises.
Ning, N. M. (2010). Dealing with Effects of Economic Crises. Nigeria: Aboki Publishers.