Necessity be the mother of invention Essay Example | Topics and Well Written Essays - 1000 words

Necessity be the mother of invention - Essay Example Also any decline in the gross domestic production for more than two successive quarters is referred to as recession. When recession falls on a society, it is applicable on the producers, consumers, business organizations, industrialists, in short the whole society. In times of recession, the society affected, should aim on producing innovating and sustainable methods to provide means of reduction in the recession instead of reducing number of businesses, firing employees, reduction in usage of technologies developed from before. Innovation can play its role in the society by pushing recession backwards, and if that is not possible than it can at least stop recession from growing and bringing the economy further down. This can be achieved by long-term strategies and public investments in different fields especially growth sectors to provide better technologies so that recession does not overtake the society and the economic demands of the people of that society. Recession leading to i nnovation and prosperity As recession progresses, a decrease in the trading and industrial activities is witnessed. This is a negative respond by the business organizations and industrialists. ... When these business organizations decrease their work out put, they have less work load which is why they fire their employees; increasing the rate of unemployment and making the society feel that real recession has approached. This is a negative response to recession by the business organizations which leads the economy towards a downfall. A more positive approach would be to increase work load by increasing work out put with the help of more employees. This way the employees will not feel the burden of recession and they will work with devotion for their company or firm. These are some of the main reasons of progression of recession. One major cause is inflation. It is referred to as a rise in the price of goods and services. When recession occurs, the customers spend less and save more money on goods especially with their inflated prices. Therefore, fewer amounts of goods can be purchased, reducing sales. Inflation can be caused by different factors such as increase in the product ion costs, increased energy costs and national debt. When a company faces severe consequences of recession, it tends to decrease the quality by cutting production costs hence cost of the product is lowered. The change of quality of products neglects the requirements and needs of the customer. Instead of compromising on quality of product, the organizations along with their researchers should work on reprocessing the methods of making the products and by taking the risk of introducing new products. Innovating new products will earn the organization confidence of the customer, and when the period of recession ends, the customers will continue to look up to that organization that took care of their needs in times of crisis. This way the company which allows innovations will run