Applaud The End of the Recession Across the world, why don't countries applaud the end of an economic recession? Please allow me to explain. For sure, recessions can be very punishing on households and the entire economy. So like anything bad, I think we should celebrate its departure. The recent recession in Nigeria brought about by poor diversification, inefficiencies and maladjustments has exposed the nationâ€™s perilous dependence on crude oil export revenues which collapsed and gave way to a sharp year-long period of great hardship for the people. As the people had developed an inexorable propensity to imports, when oil exports dropped sharply, the Naira gave up much of its value causing the import dependent economy to suffer greatly. And this was quite evident as Inflation went up, unemployment went up and incomes dropped or stagnated. Frustration worsened and invited suspicion which together have not helped an already fragile political economy, mired with ethnic sentiments. So now, the recession is over, but inflation has not ended. The unemployment rate is still high and may take long to come down. But let us do something no else has done. Let us praise the end of the recession by having a month long festival culminating in a weekend when businesses do promotions and sales, and when households would have thanksgiving for surviving the recession. The government would also speed up specified infrastructural activities to be unveiled at the end of the festival month. This strong spending by households, government and businesses might just invite a stronger recovery to follow the end of the recession. Our hidden economics for you.
Posted: Sep 13th, 2017 @ 12:42:11 AM