Economic recession, welfare and related matters.

The global economic downturn otherwise known as the economic reccesion has forced a lot of countries to cut down on their welfare budget. Third world countries that began policies on welfare have been forced to abandon the idea. With the expectance of the great reccesion, it has become obvious that the welfare state is really going to suffer. The question here is `who will it affect most?. Let us look at some facets of our lives that will be seriously affected and the resultant consequences.

EMPLOYMENT.
A lot of companies have been forced to cut production because of low sales. In the US, the auto industry has been badly affected that some of the rescue plan is to merge with other auto companies or closing down plants and laying workers off. In Germany, auto workers have either been laid off or their hours cut to prevent wide scale unemployment. In Japan, Toyota posted a first quarter loss in 2009 while in Russia auto plants have to be closed down for a specific number of months to balance the books of the various companies. You will realised that i did not mention any third world country. This reaffirm a proverb in my local language which says `if those climbing with their front view are falling, how much those climbing with their backs`?

What do you think will be the effect of people losing jobs or low renumeration? Well let me start with the effect of recent unemployment in Finland where i live. The Finnish police in the hesinki region confirmed that the number of youth engaging in has increased. Why do u think this is so? This is because humans will do whatever it will take to survive. What about other countries. In UK, there was a demostration recently by `Brtish´citizens and the idea was to give ´British jobs for British people`. I personally think there is no racial connection to the demostration but rather it was out of desperation. In US, recent shootings have all been linked to the effect of the reccesion. What about third world countries? Well your guess is as good as mind. Governments have to cut down on various interventions. In Ghana my beloved country, the government have been forced take a look at the school feeding program, youth unemployment program and cutting down government expenses. In most part of the world, crime has increased to an unprecedented level. Well lets hope the world best economist can fix the problem till it gets to great recession otherwise there will be great consequence.

WELFARE.
The welfare budget of various countirs have been cut because the various governments have failed to reach their projected revenues. What this means is the budget of the welfare programs will have to be cut and the poor people who receive such benefits will suffer more. There is a saying that `a hungry man is a angry man` and so we should expect crime and other social vices increasing in the world. In Finland, municipalies have cut their budget to again balance the books of the various municipalies. In third worlds, governments have to borrow from breton woods institution to sustain the budget. The various government interventions has to be stopped and those on the pipe line has to be abandon.who will suffer? The poor man of course. And what will be effect? Will debate about it and lets meet next week. Till then enjoy ur week.