lördag 20 februari 2010

Why does consumption increase even in a recession?


The western lifestyle does not seem to change, not even in bad times. Is this an effect of this so-called consumption society? Maybe it is so. A recession as such implies that the people’s economy becomes worse and therefore the consumer habits changes. But, apparently this is not the case in Sweden.
How can we explain that consumption increases in a recession? My opinion is that the people, in general, do not believe that we really are going through big economic crises. Of course, the person who has experienced this by losing his/her job or similar, may be of other opinion. But in general, I believe that most of us continue spending money as if the recession does not concern us. To experience a real economic crisis means that our welfare is extremely threaten, which seems not to be the case today. People can still afford the most of things they wish for. Maybe, we don’t go and by the newest car of the latest model, but we are going to by a car if we want to. Maybe, we don’t go and by a house, but we could if we really wanted to. Maybe, we don’t go and by three pair of shoes this month, but we are going to by two pairs of shoes! My point, however, is that the term recession has many different definitions in different countries. Or, what is most probable is that the recession has affected us all in one way or another, but with great differences between the countries.
I do believe though, that some consumer habits have changed in our part of the world. This includes mostly luxury articles. My opinion is that consumers don’t spend a lot of money buying expensive food and are not paying visit to expensive restaurants as often as before. Also, I think that some people may have changed their habits regarding transportation. Since the petrol has become more expensive, people seek cheaper solutions and takes train and bus instead of driving their own car. But, otherwise, people keep spending their money. Nevertheless, spending money in bad times might stimulate the economy. This means that the demand increases and the production in turn.
To sum up, I think that we actually are not living in tough times. Therefore the reason why people continue consuming. Another reason could be however that the consumption stimulates the economy. Regardless, our lifestyle does not change, for now.

1 kommentar:

  1. Hi Marina,

    I like this text and I think you are a good writer. You know how to spell and how to put words into a sentence. It is easy to read your text. The text has a clear start and a fine ending.

    The introduction clearly shows the topic with a statement and a question. Further on you discuss the problem and the first cause “...people, in general, do not believe that we really are going through big economic crises...“ is mentioned. Later on you have a supporting argument for this matter: “ a real economic crisis means that our welfare is extremely threaten, which seems not to be the case today” which tells us more.

    In the middle of the text you discuss the difference between countries and you let us know that people have change their way of living a bit: “...I do believe though, that some consumer habits have changed in our part of the world. This includes mostly luxury articles...”. A supporting argument to this matter is: “..Since the petrol has become more expensive, people seek cheaper solutions and takes train and bus instead of driving their own car....”.

    In the end of the text you propose a solution that might solve the problem of recession: “... that the consumption stimulates the economy...”.

    To improve this text I think you can do as followed:

    1.Divide the text into paragraphs. Then it should be more easy to read it.
    2.As a reader I get a little bit confused about the topic. In the beginning it is clear what it is all about, but in the end you suggest that the recession does not exist. That confuses me a bit.
    3.“My point”? I think the correct way to write it should be: “My point of view”.

    Well done, Marina!
    Best regards, Ann-Sofi

    SvaraRadera