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On the Recessions Effects: No Buzz in Shopping Malls - Research Paper Example

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The author of this paper aims to understand the assorted concepts of the economic recession, to examine how the economic recession affects the consumers, and to explore how the economic recession affects the capitalist economy, especially shopping malls…
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On the Recessions Effects: No Buzz in Shopping Malls
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Download file to see previous pages The malls look deserted now. Earlier, in normal times they would be bubbling with people. A quick walk through the mall shows you just how. Many malls are taking cost-cutting measures by laying off staff and cutting operating hours. By opening later and closing earlier, malls are able to save money on salaries to employees and cut expenses on such things like electricity, heat, air conditioning, and security. The stores that are still open do not mind either. They are able to cut some of the same costs by operating with reduced hours and staff.
For many younger people, the impact of the recession on malls hurts them the most. As summer approaches, many students, like us, and youngsters will be looking for part time jobs to help spend their time on vacation. But as they head to the malls, they find fewer jobs available. Shopping malls were once money making monsters with stores and companies fighting over premiere locations and anchor units. The purchasing power has come down, there are fewer buyers in the market. Prices had to be brought down, and that in turn affects production. In the long run, this would result in inflation.
This paper aims to understand the assorted concepts of economic recession, to examine how the economic recession affects the consumers, and to explore how the economic recession affects the capitalist economy, especially shopping malls. Thus, the hypothesis is framed as:
The recession is an economic phenomenon characterized by declining demand for resources, products, and services. A recession in the United States is declared when the gross national product (GNP) decreases for an observable two consecutive quarters. The three-month straight weakening of the leading economic indicators (LEIs) is also an indicator of a recession in the US. ...Download file to see next pagesRead More
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