What is a recession? The generally accepted definition of a recession is two successive quarters of negative Gross Domestic Product (GDP) growth.

It’s a known fact that we are in deep recession, deeper in US, UK and other developed nations as compared to the developing countries. Developing countries are not immune to this, as the consumption and demand from these would be impacted as a result of recession and hence a cascading affect across the globe. China reported 20 million job loss and it’s premiere has been making rounds other side of the world to ensure the ‘doors are not being shut on them..’ India reported 500K plus job losses in textile, jewellery, auto and manufacturing. IT saw a marginal growth, however NASSCOM did lower the growth expectation from 21-24% to 17%, (may be a breather for some in the near  term.)

Defence budget put under scanner, budgets tightened, expansion plans seen the door at a faster pace than one could imagine. Recently Britain, shelved a plan to buy a £13 billion naval warship.

All said and done, we are coming to terms with it and we have no choice.

So why recession?

The right question to initiate a blame game, to blame it all on the financial decisions that grossly went wrong, made by the once gurus of financial world. The same DNA that made them last for more than a century? There’s more to it than that meets the eye.

Let’s go back and glance at our economics books which states product is an accumulation of labour. Unless there is labour there is not going to be any product. Over the last decade, growth in entertainment, luxury, & multiplexes across the length and breadth of the country has out paced the growth in any other industry. There is a mad rush for the latest gadgets, to achieve the zenith of luxury and live as much a comfortable life as one can possibly imagine, hoping that this will continue forever.

Something to ponder and introspect on.

Image Credit: Eden Pictures

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