The Effects the Recession Had on People - Research Proposal Example

Research proposal on the effects the recession had on people Introduction Recession is a period of economic growth stagnation which is mainly caused by fall in the level of economic output, investments, consumer spending and employment. United States of America and United Kingdom (UK) suffered the largest economic recession since the Great Depression of 1920s. The economic contraction of the two economies saw the unemployment rate double and Gross Domestic Product decline. The recession dealt a harsh blow to the UK labour market and many employers were forced to down-scale their workforce (Thomas and Dorling 2011). The elderly employees who lost their jobs were forced to start utilizing their retirement payments. The collapse of the financial markets and subsequent economic recession and unemployment has created an interest for social policy researchers to study the resulting economic and social distress experienced by the UK people. Poverty and unemployment can decline the level of happiness and wellbeing experienced by people thus understanding the impact of the recession can help social policy makers in exploring solutions of avoiding further social crisis from recession (Forrest 2011). In early 1980s, recession mainly affected low skilled people aged less than 20 years since they were forced to leave schools without adequate academic and skills qualification. The purpose of this research is to examine and understand the impact of recession on people especially poverty and unemployment. The research will also indicate the impact of the recession on family relationships and general happiness in the society. This research study is of great importance since the recession in the UK is the largest contributor of the low consumer spending and poverty. The impact of the recession on the UK people is also blamed for numerous suicide cases and divorce. The research study is of prime importance since unemployment has contributed to negative long-term effects like psychological disorders like depression and other mental health complications (Farnsworth and Irving 2011). The research is linked with social policy since sociologists have attributed the decline in happiness to fall in consumer incomes since many households are unable to purchase luxuries or live in good homes. According to social policies, reduction in consumer incomes leads to unemployment, poor academic attainment and poverty which contribute to social problems such as poor housing, crime and psychological depression (Farnsworth and Irving 2011). Research questions This research paper will give answers to the following questions which are critical in understanding the impact of recession on the people. 1) What is the impact of recession on unemployment and poverty? 2) Did the recession damage family relationships stability? 3) How did recession affect people on housing and subsequent social attitudes changes towards home ownership? 4) What are the long-term health implications on the UK people affected by the recession and psychological well-being of the affected people? 5) What policy initiatives can be implemented to reduce the adverse impacts of future recessions on the people? Literature review The UK economy went in to recession in early 2009 when the Office of National Statistics announced a 1.5 percent fall in the Gross Domestic Output (GDP) for the last quarter of 2008. This was the first time the economy had contracted since 1980s and the first time the economy was in recession since 1991. According to the National Institute of Economic and Social Research (NIESR), the economy declined by 4.3 percent in 2009, which was the largest fall in gross national output since 1945. The UK recession was as a result of the credit crunch that started in 2007 and the financial crisis of 2008 which affected mainly mortgages sector and derivatives market. The adverse effects of the recession were unavoidable since housing prices declined, share prices declined and inflation eroded the purchasing power of the people leading to a decline in consumption and output in the economy. Many businesses were forced to lay-off workers due to decline in consumption and harsh economic conditions (Forrest 2011). Job losses and decline in consumer incomes are the most significant features of any economy when in recession. UK unemployment rate increased from 7 percent to about 10 percent for the period the economy was in recession. Older workers were laid off through cheap retirement plans while youth unemployment accelerated rapidly to 17.3 percent in mid 2009. The recession disrupted the living standards of the citizens and created inequality in the society. The living standards of people who depended on wages and salaries for consumption declined than those who depended on fixed incomes and state benefits. The number of unemployed people increased from 0.75 million to about 2.5 million in 2009. The manufacturing sector alone lay off more than 0.2 million people (Great Britain: Treasury 2008). Recession also led to family separation and divorce due to stressful experiences of unemployment and poverty (Rubery 2010). The expected housing sector downturn damaged family stability since many households lost their homes (Rubery 2010). High mortgage debts and low consumer incomes adversely affected the family wellbeing and general happiness in marriage (Richardson 2011). Accordingly, recession led to lower psychological satisfaction with life especially among the people who lost their employment (Rubery 2010). The fall in incomes disrupted the social esteem, and social networks of many individuals thus many people suffered from mental health complications like depression. Home repossessions also forced many people to live in poor housing conditions which reduced the general happiness with life. According to the Department of Health, there was an increase in the number of patients under treatment for mental health related problems after the on-set of recession in the economy. Several incidents of suicide due to poverty-related depression and divorce were also documented by the Department of Health (Rubery 2010). According to the British Social Attitudes Survey, the recession led to negative people attitudes towards the housing market. More than 50 percent of the respondents indicated that they were not willing to buy any house in the coming years due to uncertainty associated with the housing prices. 40 percent indicated they would advice the young couples to wait for several years before buying a home (Great Britain: Department for Work and Pensions 2009). Research methodology The research paper will utilize a descriptive research methodology in understanding the past impacts of recession on the people and how each group of people in the society was affected by the recession. The research will be centered on the impact of the recession especially in UK but the findings can be generalized to other countries like the United States of America. Data will be collected through the use of both primary and secondary sources. The paper will utilize both qualitative and quantitative data in explaining the social and economic effect of the recession on people. Primary data will be collected through interviewing the numerous focus groups like youths, aged individuals and patients suffering from depression. Secondary data will be collected through reviewing the existing statistics on the economic and social impact of the recession which are readily available from Government agencies. The research will utilize stratified sampling technique in selecting a representative sample for the study. The population will be divided in to three focus groups which include youths, aged people and mental health patients. A representative sample of 50 individuals will be selected from each stratum of 100 people. The study will allow for 3 percent margin of error. The research study will adhere to all ethical considerations. A genuine consent of each respondent will be sought after explaining the purpose of the study to all the respondents. The privacy and confidentiality of all respondents will be guaranteed by changing the identity of each respondent. The research findings will not be used for any other purpose other than the objectives and purpose of this study. After data collection and coding, simple statistical software will be used to analyze the data. Data analysis will indicate the percentage of unemployment during recession and number of people who lost their homes due to repossessions. The analysis will also indicate extend of psychological depression from poverty, homeless and divorce that can be attributed to recession. A margin of error of 3 percent will be allowed for in data analysis. Presentation and dissemination The research findings will be presented and disseminated to social policy makers and social researchers. The findings will be useful in developing social support policies that can help individuals cope with economic stress due to recession. The findings will also help the government agencies in developing out-of-work benefits that can help in coping with unemployment and poverty in the society (Segal 2010). Conclusion The recent recession led to adverse economic and social problems that created income inequality and disrupted family relationships. The recession contributed to huge psychological suffering which led to several suicidal deaths and mental health problems. The social policy makers will benefit from the findings of this research study and implement social and welfare policies that can reduce both economic and psychological suffering during economic crisis. Bibliography Farnsworth, K and Irving, Z. 2011. Social policy in challenging times: economic crisis and welfare systems. Bristol. Policy Press. Forrest, R. 2011. Housing markets and the global financial crisis. Cheltenham. Elgar. Great Britain: Department for Work and Pensions. 2009. Building Britain’s recovery: achieving full employment. London. Stationery Office. Great Britain: Treasury. 2008. Facing global challenges: supporting people through difficult times: Pre-budget report, November 2008. London. Stationery Press. Richardson, J. 2011. From recession to renewal: the impact of the financial crisis on public services and local government. Bristol. Policy Press. Rubery, J. 2010. Women and recession. London. Taylor & Francis. Segal, E. 2010. Social welfare policy and social programs : a values perspective. Belmont. Thomson. Thomas, D and Dorling, D. 2011. Bankrupt Britain: a post-recession atlas. Bristol. Policy Press. Read More