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The present state of economy in the world is very wanting. Man is entirely dependent on every activity that is economically done, yet with constant improvements. Economy has been attributed to be one of the major pillars of economy in the world. However, many activities that are happening in the world are actually against the development and growth of economy. This has proved the fact that the state of economy is devastating and needs an immediate concern for it to be salvaged. Financial institutions and business transactions are the major contributors of the falling economy in the world.
The state of economy in the world remains to be the unsolved crisis. The crisis is centralized to the detrimental conditions that have actually remained to harm the state of economy in the world. When you go from one state to another, the cry for remedies to rescue the state of economy always fills the air. The world is largely dependent on the economy and this has actually necessitated for its stability in whatever way possible. Scholars, analysis, and even political leaders have been on a forefront in ensuring that there are always plans and strategies to have the problem brought to a firm control. All these have however turned out to be against the wishes and intentions of these people. It therefore remains to be one of the unsolved crises in the present world. It is for this reason that it has been referred to as a phenomenon (Poole, 2010).
First and foremost, there is a widespread unemployment among the young and old in the society. The major building block in many economies of the world is from the nature of employment that people are able to access. This will hence enable people to access the basic needs and necessities of life. This state of unemployment has brought other detrimental effects on the life of many individual people in the world. This has also translated to poor economic conditions in the world. When people are actually not employed, they won't be able to contribute to the development and maintenance of economy of the state and the world at large. The economy is thus unproductive and unstable in many conditions. The unemployment rates in the world have been contributed by a number of other factors. It is therefore hard to provide a remedial advantage. Many private sectors are closing down their endeavors of creating more jobs for people. Many people are thereby losing their jobs with those in wait failing to acquire any activity for an earning. Companies are walking away from the daily business that has been the major employment for the people. Mechanization is another factor that has actually led to massive unemployment among many people in the world. The jobs that were done by people are being undertaken by mechanized applications. People are thus being rendered jobless. This is a clear indication that it will be even harder in future to have the crisis brought down to a manageable size. Moreover, the recent downturn in the construction and finance sectors have been some of the other factors that have consistently contributed to the present shocking state of economy in the world (Chehal et. al, 2010).
Many business establishments are involving in practices that are actually detrimental to the present state of economy in the world. Some of the decisions and actions of many companies and organizations are against any strategy that may arise to rescue the falling economy in the world. Some of these practices are the unethical lending transactions. These activities are normally practiced by financial institutions and firms. For instance, many banks and credit unions are having their standards of qualification lowered so that they can be able to access the mortgage loans for their personal establishments. This is very crucial to the development of economy in the world as it possess a risk to any plan of stabilizing the economy. Moreover, there is another issue of the adjustable-rate mortgages. They began with super-low teaser interest rates after being approved by the lenders. It was after some time when they resorted to much higher ones. Moreover, the mortgage issues are the ones that actually contributed to instability of the world economy. As much as more families were being encouraged to be in possession of homes, this was in some other way a contributory factor to the crisis in the economic sectors.
Economic crisis is also being contributed by the housing bubble that got expanded few years ago. Housing is one the basic needs that every family is in need of. It is therefore very important for houses to be of lower prices for people to afford. Economic crisis got initiated when the houses were made expensive (O'Toole, 2010).
Another important sector in the development of economy in the world is the stock market. This has been the major contributor to the development of economy among many countries in the world. When there explode instability in the stock market, the state of economy in the world was the most affected. The fall in the stock market was contributed by a number of factors as unscrupulous lending by many financial institutions, the ever increasing problems in the credit market and the drop in the prices of many banks and financial institutions' pricing (Verbuggen, 2008).
In conclusion, the present state of economy in the world is largely dependent on the nature of business that is being undertaken in the world. As far as many financial institutions are swaying in their daily activities, the present state of economy in the world will remain to be a crisis. It will take the initiative of many financial institutions to have the crisis brought to a humble and manageable state.