Topic: Do you feel that the global economy is declining? - page 4. (Read 790 times)

The world economy is shrinking because inflation has raised the prices of many goods that are difficult for low income people to afford. The economy has many problems some of which are very fundamental. As long as these are not resolved the country's economic development will not accelerate. No government is able to function peacefully due to political instability. Due to political instability economic development has been greatly hampered.

Yes, it depends on each country. In my country, some companies do not hesitate to reduce workers' salaries on the grounds that there are not enough costs to maintain the company during difficult economic times. Those who can accept it will continue to work, those who cannot accept it can quit immediately.

According to the provisions of labor law as well as the regulations of any company, the salary will increase according to working time, experience... but on the condition that the company develops well and does not encounter difficulties. But once difficulties arise, those regulations will no longer be effective and that is a disadvantage that workers must accept.

That's your thought, but not every nations, companies and positions will follow that.

Reduce salaries is hard, but during pandemic, they can cut whatever they want and the employees don't mind with that.

Even the workers choose to resign because they feel the salary is too low, there's always be a person will to work for the same position with less salary. So this is a win-win situation for both former workers and companies.

It's easy to say that done, if there are many high paying jobs opened, the @OP friends won't complain.

It seems that no company will reduce salaries as low as or below the minimum wage because if that happens the government will act or workers will quit because they cannot meet their needs. Because from year to year the salary will definitely increase and adjust to the increase in all goods due to inflation.
Perhaps the increase in inflation is not balanced by existing salaries, and there are also salaries that are still below the minimum wage standard, even very low. Because it's not a big company or it could also be because the minimum wage in the area is very low, and if that's the case why not look for or apply for a job that provides a standard minimum wage or more.

Even that link above is for 2023.

This is the current one: https://en.m.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)

Just look for African countries and you will know Nigeria is the fourth.

This was yesterday news on Bloomberg:

The GDP recently is less than half of what it was in 2014. It is quite unfortunate for Nigeria.

I know that the Nigerian GDP has shinked a lot over the years, that's why they have been in a recession a few times over the years.

I agree that GDP is the factor used to measure economic growth, I am not disputing that fact. I am only making an observation that I usually see when looking at GDPs of countries. I mentioned Nigeria because I read recently that the GDP has increased by a certain percent in that particular quarter, but how has that affected the average Nigerian?

In Africa, Nigeria has the second best economy in terms of GDP after Egypt, but can we use that to say Nigeria is the second best country to do business or the second best country to work in?

Nominal GDP of African countries
In the link above you'll see that the difference between between the nominal GDP of Egypt and Nigeria is very little, but looks at the per capita of those countries. You'll find out that Nigeria has one of the worst per capita among the top countries of the continent. When you consider the fact that inflation in Nigeria is around 30%, you'll realise how bad it is for the people despite the GDP being one of the best in the country. Also when you look at the percentage of people living below the poverty line, you'll see that Nigeria is on 40%, there are reports that show that that figure is around a 70% region, but I'm sticking with Wikipedia.

I'm stating all these so we can get a picture of how things really are. My point is, using GDP to tell if a country is progressing is okay, but in few cases, it doesn't really tell the whole story.

Inflation at it's best. I am wondering where your colleague is at the moment. Here in my country it's all the same local currency is depreciating it's value while prices of goods are getting high so yeah something is wrong in the economy that needs to be fixed immediately.

Lower salaries or because their value is influenced by inflation, while traders in the market respond more quickly by increasing prices. Some responsive countries and compliant companies will create new policies by increasing wages, but not all companies do this. Instead of increasing salaries, they actually impose more additional tasks on employees in exchange for working overtime if they want to get more salary. Traditions like this no longer apply, and the government often does not care about company operations which impose additional burdens beyond the main duties of an employee. However if you look at the global economy, there are many factors that influence its decline, such as war conflicts which usually cause trade relations with related countries to decline, demand in the market experiences negative things while domestic production continues, workers have to be paid while target goods on the market are hampered. As a result companies will take action to reduce employees or other options to reduce salaries because product demand in the market is decreasing.

You cannot really use a sample size of one to come to that conclusion, however due to the pandemic it is true there are many countries that suffered severely because of it, and in a way many of those countries have not recovered yet.

But at the end each person is responsible for their economic future, so if the salary your friend receives is smaller than what it was 5 years ago, maybe his occupation is being replaced by AI or other forms of automation, and maybe it is time he looks for other ways to earn a living.

If that was the case, why didn't he try to find a better paying job somewhere else? why should he stay in a place with a fairly low salary. Because the prices of these products will indeed increase every year due to inflation. You cannot expect that food prices in 2016 will be the same as food prices in 2024, there will definitely be an increase. That's why the government increases the minimum wage every year to adjust to inflation, so when someone gets the same salary every year without any increase it means the company is at fault and they can be reported to the authorities.

Well, no, I don't feel it. What I see is a lot of people with big cars for the salary they earn, acquired with leasing or 10-year financed and in some cases rolling in negative equity of the previous car, high-end cell phones also financed, restaurants full, and idyllic lives on Instagram. Which makes me think that, apart from the few who have real money, what I see reflects that access to and use of credit has hardly reduced, despite interest rate policies, which is consistent with recent inflation data.

I agree about that going to countries with low population as the demand there is high for workers. And with that, it is setting the salary of the most to be in that kind of expected salary of yours. It's a fact that when a company wants to fire you, you'll just get fired for whatever reason they'd do, like cost cutting, underperformance or any of the reason that they can set. It's hard for those employees to absorb that especially if they've been loyal to them for a very long time but, they can't do anything about that if the company decides to. However, for the past decade, I've seen companies although they're only few but they do value their employees and takes care of them as a real family. That's why for somebody who has got type of company, I understand that it's not all about the salary why they're staying but it's about the treatment that they're getting.

The value of your friend's salary has declined, that is a fact. Even though its face value is continuously increasing due to appraisal, bonuses, and promotions, the things that can be bought with it has surely diminished over time. The prices of goods are continuously rising, and it does not match the salary increases across all economies. This is why it's important to have a hedge on what we receive for our salaries, perhaps gold, crypto, or other investments that are outperforming the inflation on our own countries.


Even promotions no longer provide security against inflation. Unless you're promoted into an executive position, most promotions only increase your responsibilities but not the reward based on my experience. Companies no longer value their best performing employees, they just use them for their own benefit.

This is a fact. Currently, it seems that most of us are also aware that the global economy is declining. But in the country where I am now, things are actually still going quite well. Even when other countries are experiencing difficulties due to soaring natural oil prices. But it doesn't feel like it here. It's just that inflation is clearly felt. Well, our salaries might increase every year. Whether it's because of a promotion or something like that. But the fact is that its value continues to decline quite clearly. And that can be proven by the fact that 5 years ago we could buy a lot of things with the salary we got for 1 month of work. But today 1 month's salary cannot buy many things even though the amount has become more and more growing.

I too don't think for one that the global economy is on a decline. Am sure any economic problems may be more due to the causes of government policies and regulations within your region or country.
Also, I think that the global economy is nearing a time when change gets to flush out certain reliance on some currency policies that are no longer favorable to the citizens and with the emergence of cryptocurrency and the BRICS currency initiative, more is expected to happen to alter certain economic ties and create new ones to bolster the macroeconomics of the countries of which the change is to happen within .

It has been declining for many years now, nothing new. I think it was late 80's that we first seen a crash that was caused by the modern financial companies, not some big crash, crashes happens all the time, even in middle ages they happened. I am talking about modern financial companies such as wall street and investment firms and all that making something that would not be acceptable and they just go for the highest risk possible to make more money from money and they ended up causing a big trouble.

Ever since those years, we keep having these companies going for bigger and bigger profits and failing and then causing us to have terrible finance because they keep getting bailed out, and in return we pay for that.

The global economy has been falling since COVID and it's getting worse since. The number of credit card delinquents is increasing and homelessness is getting worse than it was back 10 years ago therefore global economy is really declining. There may be parts of the world where the economy is better like in the Middle East and Asia but they are still affected by money printing and the wars.

If we're looking at 5 years, then I agree that in many countries, including mine, things are getting worse. Salaries are higher in local fiat, of course, but the purchasing power is lower than it used to be, so to improve your life, you need to be in active career growth to outrun these changes.
That being said, I'm not sure if it's a global trend, because in my country it has regional causes that aren't relevant elsewhere. I tend to agree with Charles-Tim that objectively, the global economy isn't on decline.

Almost all countries are experiencing an economic crisis, this is happening in almost all countries, as you said globally, but it's not that your salary is low, the value of the currency is deteriorating, needs such as goods are soaring, this phenomenon is close to disaster. callinflation.

Lately the price of goods has soared, in the past you had a salary of $1000, for example, with that amount of salary you could buy a motorbike and still be able to save, now you no longer have to add another $500 to be able to buy a motorbike, This means that if your current salary is equated with minus goods, things like that cannot be blamed on salary, what should be blamed is on the goods we need.

In this way we realize that the current value of money is no longer valuable if it is exchanged for goods, if this problem the government does not solve it, In the future, maybe after receiving it, you will only be able to get one sack of wheat. The problem you are feeling right now is a big threat to the world.

It’s really shocking when you buy goods and you compare it to its old prices. Nowadays, everything is just so expensive


The government controls its money to keep their economy healthy. I agree that we should have our own control over our own money however without a government governing the entire financial system, a lot could go wrong.

Hyperinflation would be worse actually and the poor will most likely become poorer.