RECESSION AND SOCIAL CARE

Impact of Recession on Social Care

Impact of Recession on Social Care

Introduction

After the great depression, of 1930's, the financial crisis of 2008-09 has been the most tough one. It has affected not only America, but has also affected different parts of the world, because the countries are fully integrated with each other. If any one country is affected by the Recession, than other parts of the world have a major impact of that too. Similarly, recession has created problems for most countries. Demand has been significantly cut, and unemployment rate has been very high.

Researchers blame that financial markets and its instruments has been a major cause of the triple down effect. It has created severe problems for the economies. These instruments have led to significant defaults. Proper risk management measures were not taken. If the financial institutions had taken appropriate steps, the situation has been quite better. Recession and budget constraints not only have affected other sectors of the society, but have also affected social sector care and reforms. The government has to efficiently allocate resources to different sectors of the economy. It has to face serious challenges when it comes to managing resources in recession.

Discussion

Recession and its Challenges

In the past few years, enormous growth in budget consumption has taken place. However, recession and the problems existing in the economy is making people a little cautious of their spending on food, shelter and travel. They are opting for a more reserve approach in their eating and buying of food preferences.

The government is facing budget constraints, however, the social sector has immense potential to prosper and continue to grow, despite challenging circumstances. In Uk, the branded budget market is underrepresented having a total percentage of 13%, as compared to a share of 23% in France and 25% in the US. Hence, the country can improve the situation immensely. Even when the economy is undergoing through the growth phase, companies keep a strict control on cost (Sorkin & Andrew R, 2009).

Impact of Recession on Social Care and Social Exclusion

Recession has created problems for many sectors and industries, from banking to retailing all have lost their luster. The existing staff of the organization is not getting sufficient rewards, which can satisfy their needs. Hence, it is not surprising to know that, in such an environment, social care and social welfare of the people is affected. Social Welfare and work are very important for any country, as it is necessary for the development of society. Through social welfare, people get their appropriate rights, and their needs and wants are fulfilled. It assures equitable distribution of resources, and help economy achieve efficiency (O'Donaghue J, 2009, pp. 37-42).

It was expected that the government would reduce the expenditure on social sector and other sectors of the country. The government is under intense pressure to cut its expenditure and save their money for tough times. The issue is also affected by the fact that the national debt of ...