Economy In Crises

Essay by PaperNerd ContributorUniversity, Master's November 2001

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Economy in Crises As we know that America's economy has run into rescission after the terrorist attack on September. This is effecting all over the world and also creating tension between many countries. America is also in standing with its bad times. Many companies are laying off their employees or some of then are even closing down. People are scared to travel around the world. Consumers are losing their faith to spend their money. This economy is suffering form the crises however, many companies are filling bankruptcies, which is leaving effects on the household section and stock markets.

From the last few weeks many companies has freeze their hiring new employees and more over they are even laying of their number of employees. Especially the companies involve in the Airlines and Hotel business. In last few week these two has suffer vigorously. According to economist, in the moth of September more than 70,000 employees has been out of their job, these number does not include the people who were lays off by Airlines and Hotel Industries.

However in the last few months' nearly 264,000 employees lost their jobs. (Pacific daily News, October 8, 2000"¦10). This has created serious problem within the economy. People are not getting enough paychecks to pay their loan and bills. This has slow down the money circulation in the economy.

Many companies are going out of their businesses because consumers are not buying as much as they suppose to. They are losing their confidence to invest their money as they look at the businesses going down. These companies are also facing critical problem that how to bring back up their consumer confidence. This has given birth to the greater problems, which might lead to filling bankruptcies by many companies. However, to encourage people to...