Before starting I would like to say "If Microsoft sacks even a single employee in the name of recession, then Bill Gates would be contradicting to his own notion of Creative Capitalism" :)
It has been almost 3 quarters now, that the world economy is stumbling with no immediate signs of finding the path to recovery. Why is so? The mega rescue/stimulus package from US the rescue packages from European and Asian economies are not enough? It may be the case that original losses at the beginning of the crisis were far lesser than sum of the rescue packages money. So are these packages are delayed a bit? I think no, the recovery is not possible unless the "media", "business leaders", "governments", "common investors" & "the banks" come together with positive thinking as if nothing has happened. Creative capitalism needs to be followed which focuses not only on profits but also tries to help the community. Hence instead of laying off the employees the bosses should find some alternative ways to cope up with losses, alternative such as reduced work hours should help prevent the negative sentiments and fears spreading. Media should not publish news such as company XYZ has fired XX% of its workers it only creates panic and the road to recovery gets longer and longer. The layoffs also inturn reduce the business by some way or other. The trillion dollar package from US Fed has helped some positive sentiments to float and hence helped the markets to go up a bit. Only the announcement has made the investors to look forward in some positive ways. I would say it would only help if the reality kept hidden and only positive news made public. Anyways after saying all this after being in the same sinking boat as we all are there are few things which particularly government should learn
- Don’t let a single organization take so much control of the economy as the AIG, Lehman Brothers, Merrill lynch and JPMorgan’s of this world have controlled. Just don’t let them grow so fat and let the top bosses corrupt them so badly that it brings up economic crisis
- Put some strict norms and measures on economic institutions.
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