Can Recession Be Switched Off?

The hot and happening topic everywhere is the huge recession and a big turnaround of economy. Everyone, even the layman knowing absolutely nothing about the economy becomes a great economist and forecast some of the worst situations to come!! Some times it seems that all the news papers and media are paid to consolidate in our minds that this is the worse phase of our economy and even worst is expected. All the stock analysis just stretch that the DOW is trading on the lowest level since 1997and still more is remained. The issue is scattered like anything. Every mouth has a new story.

The fact of recession is quite revealing in front of us and no one can deny it. But the more important question should not be the situation but the reason and the solutions. Some of the economists believe that there are still minimum 12 months to come out of this phase and even if we come out till 2010, it is a good sign for the economy. The Government has announced some concrete steps and also a huge stimulus package of $787 billion. Is this enough?

If some one is ill, the right procedure to cure him is that the immediate medicines to cure should be given and then the reasons for the disease should be searched and they should be diagnosed. The patient come to the doctor for a long lasting health solution and only the deep research can make the patient feel that all will become well soon.

Similarly, somehow the economy has found a problem. The stimulus package is definitely a good pain killer. But more importantly we need to check the exact reason of recession and should take some concrete steps to pull out for longer period. This process may take time but everyone should believe the result. Let’s examine some of the medicines and precautions.

1. Stop talking, start performing
   The very first step should be to change the focus and orientation of people and the authorities. Talking all negatives and loop holes will never let our economy make a dashing and dynamic jump to reach the sound situation. By elaborating all the negatives, we are pouring negativity in our mind. Remember, negatives can be eliminated, not the negativity. So, better we start performing right steps rather than talking.
2. Create confidences
   Lack of confidence is the root cause of this situation. The normal people or investors are scared of investing; the company and market are suffering due to short of funds resulting in laying-off workers. This makes big impact of the growth and later on the whole industry. It’s the simplest statistics. Make people understand that this is the bottom phase of recession. So, build confidence to rebuild economy.
3. Rectify the root
   The roots of recession should be derived. Visibly, the failure of banking sector is one of the most disgusting and discouraging factors in the minds. The Government should take some harsh and different steps. According to the economics professor at Stanford University’s Graduate School of Business, “I want Government to take over all the banks, get rid of all the bad loans and clean up the banks and then hand over to some reasonably honest people.” Educate people for a nice and sound banking habits and to handler the credit cards in systematic manner.
4. Enhance employments
   If the guys coming out of colleges are getting jobs, the society is bound to grow and believe that worst phase is over. Employments opportunities should be created and also the small businessmen and self employers should be concentrated compare to the large industries. To think small and doing big is the requirement of time.
5. Boost up Dollar
   Dollar is the heart of economy. Due to recession and lack of confidence, the Dollar is continuously diminishing. To boot up dollar and to increase the value of Dollar against foreign currencies, the foreigners and the locals are sure to believe the end of recession. To motivate foreign investors is a must for the upliftment of economy.

These five measures may help to regain the original scenario of confidence and prosperity. Remember, every construction takes place after a big destruction. Just dare to develop, the world is ready to follow us. I feel, if we blow off the recession from our mind, recession can definitely be switched off.