Is the recession good for poor people who still have jobs, but bad for others who have lost their jobs?
Posted by admin
Instantpainrelief2008 asked:
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?
Valerie
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?
Valerie
October 1st, 2009 at 3:57 am
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.