Is recession a physical phenomenon or is it a mental phenomenon..or is it both? Is it this way around..physical phenomenon first leading to mental phenomenon..or is it mental phenomenon leading to physical..huh..CONFUSING it is as it sounds!!
Well let’s go back to the basics.
It all started with the sub-prime crisis and then was triggered by sinking of many banks. It all then fell crumbling like those twin towers..sad and deadly apart. The whole world was under the dark clouds of recession. People started to lose their jobs, and people’s lives started to fall apart.
How did this all happen?
Let me talk you through a little small story. It’s a simple one. Here it is. Imagine you come up with the idea to sell stuffed teddy bears to kids below 10 in age. You do well. You hit the market with a BANG!!! You sell so many of the cute dolls, it becomes a mania. You think you have done the best in making your Bubble grow. But then at the end of the day you know it’s nothing but a mere BUBBLE and a bubble has to burst on day.. As I say every bubble is ‘immortal’. Likewise, kids below 10 got fed up with the dolls, some threw them in their bins, some donated them on charity, some just grew up and shifted their interest. Eventually the bubble did burst one day.. There was no plan B to shift people’s interest to another bubble, simply because you had not created another BUBBLE!!
It was a simple error of the very basics of business that is DEMAND = SUPPLY !!! The grass root of a very successful economy is nothing but demand. Also it is the equilibrium in demand and supply system. On the other hand, at the flip side simple reason responsible for the outburst of a disastrous economy in recession is Demand again..but in this case the Demand and Supply equilibrium becomes disproportionate.
The above justifies recession to be a physical phenomenon. Now, let’s look into this situation from a different perspective. The mental phenomenon side of things.
Having said that Demand and Supply when not in equilibrium do a fatal job to the economy, the question is WHY at all there occurs turmoil of the equilibrium. The answer to this question is we ourselves.
A closer look reveals that mainstay of the world economy or call it the backbone of today’s economy is each one of us. You, me and everyone!!! We are the world’s most important and unavoidable entities. We have the key and we are the ones who can make Bill Gates the richest man on this Earth. We have something in our hearts, and that something is called ‘desire’. Desire to do things, desire to go places, desire to be someone, desire to have something and desire to go get it. And its that desire, that makes each one of us POWERFUL. Power of buying is what we have, and will always do no matter even if it is the end of the world. We will always and always buy ‘food’, ‘shelter’, ‘water’ so on and so forth!!! It is unstoppable..it is absolute. As we say ‘it’s in our nature’.
Companies who make money, exploit buying power of each one of us. We are bombarded with consumerism stimulus under our own subconscious each and everyday. Everyday we confront ourselves with someone, something or somebody who would like to sell us something. It is up to us at the end of the day as to how receptive we are towards the stimulus.
In other words, we create the equilibrium between demand and supply. We make companies rich, we make billionaires and we make successful economies. As much as the recession is in the air it is within us as well. Educated thoughts can get us out of this mental state of so called recession. To back up my argument I do quote the example of psychological rise/fall of share markets, currencies and many more.
We have the power to get ourselves out of a BIG DARK MENTAL RECESSION. It is the time to act with positivity!!!
Please feel free to shout out your opinion if you like this post..Cheers!