Economic recession and human behavior - Essay Example

Issues of survival will develop into reactions that are outside of social responsibility. As the economy turns downward and the financial life of members of society become increasingly more difficult to navigate, decision making becomes a confusing and difficult process. The desperation that develops when the bills are piling up and the creditors are calling can make changes in the way in which people attend to their values and personal ethics. As the job market dwindles and unemployment rises, the effects on the family become profound when housing and food become increasingly difficult to maintain.

As well, increases are noticeable in domestic violence and in crime as desperation heightens emotion and lowers inhibitions. As an economic recession increases its effects on the population, taking jobs, homes, and personal identity when associated with a lifestyle, the ensuing desperation changes the way in which a culture functions and creates an unbearable tension in the dynamic of society. The term Recession refers to an economy that is not seeing growth. When two terms or more have failed to see growth, then the economy is considered in a recession.

As well, when a rise in unemployment at 1.5% (Eslake) is felt and a diminished gross domestic product is experienced, these are the signs of recession. Depression is developed when a “significant and sustained downturn”(Eslake) is experienced. This is seen when a decline in the GDP is at 10% or more or when “a contradiction in real GDP lasts more than three or four years”(Eslake). An example of recession was seen in the 1980’s when the economy declined and widespread unemployment emerged.

Depression occurred in the 1930’s and was marked by debilitating poverty spread throughout the United States. Unemployment and inflation contribute to the economic issues that arise during a recession. Unemployment is the percentage of people who are not employed but are looking for a