Topic: Do you feel that the global economy is declining? - page 7. (Read 1448 times)

I do agree with the first post: the salaries tend to remain small and the prices are skyrocketing; what happens with the prices is normal, since all the central banks are printing money like crazy since the COVID days. What happens with salaries.. is not.

But the signals I've read here and there about the industries are better than in the last 2-3 years, quite some businesses seem to be recovering. And that would be the opposite of decline, even though it needs more time on this trend in order to gain the so needed confidence.

It cannot be denied that the current global economic situation is not good. With all the conflicts that occur, this makes the economic situation uncertain, where the prices of goods and services continue to increase along with the skyrocketing price of petroleum. So there is a disparity between income and expenditure, and quite a few people even have to take out loans to survive and meet their daily needs. And maybe these will be difficult times for those who don't have enough savings and investments. Where they might be overwhelmed enough to be able to meet their needs and pay their bills.

Apart from the current situation which shows how important it is to have savings and investments, the situation we are currently facing also shows how important it is not to only rely on income from one source.

This is definitely the literal definition of inflation: "too much money chasing few goods"

But the thing is that every country has its own indicators to show how an economy is performing, and things like technology, politics are among some factors that will influence how a country's economy will perform and can't be based on a global scale...And if we talk about our current times, so many indirect factors affecting our economies such as COVID, Drought, Floods, Earth 🌍 quakes, Climate Change, the War in Russia, Now conflict in Isreal and all this affects us direct or indirectly... Can we still say the global economy is declining, well it all depends on what safe guards individual countries have put but the factors described do leave a negative impact on economies for sure!!!

Btw read some article few days ago saying Russian economy is booming even with the war at hand, so like I said we can't use a global scale but individual countries scale to tell the performance of a country...

You can't expect a system to be completely fair - that's simply impossible. The system is created for personal gain - while the consequences are borne by the common people. You must have seen the fact that the poor get poorer - while many officials become very rich after only a few years as officials. This is something that is commonplace in the government system that has been built so far - you can complain, but you can't demand that things change completely.

The national and global economies are both unhealthy - meaning there are unresolved problems. As bearers of all consequences - we must be smart enough to manage our own finances and do everything we can to get more. It's impossible to become rich with just one source of income - it's only a step before you fall into poverty. Having more than one source of income is mandatory to maintain financial stability - while we must ignore issues that are essentially the government's responsibility.

Top leaders' purposeful choices impact the global economy. Your friend's pay falling? That's not bad luck; it's the system working exactly as intended. Policies that prioritize profits above people are to blame. Prices rise, the gap between rich and poor grows, and we're expected to handle it like a natural disaster?

Falling salaries and increased costs aren't a coincidence. This is a rigged game where the powerful call the shots and we pay the price. Greed and working-class neglect have caused this storm. Will we see this ship sink? Or will we take a bucket and bail? A major renovation is needed. We must level the playing field and distribute riches. Hold leaders accountable. Because if we do nothing, tomorrow will be worse

I am yet to comprehend what you said about your friend because is it that the amount he earns is no longer enough to Carter for his daily expenses? If his salary is lower than it was 5 years ago that should imply that the cost of living has reduced as well because I don't see any reason why a government, individual or organization will reduce the salary of it's worker even when the cost of earning a living is very difficult in such a country. Maybe you should have given a proper and more comprehensive information about what you said.

Global economy is meant to decline and also increase some times as that is what keeps the world economy in a balanced state so you don't expect the world economy to keep flourishing without recording recession, because normally, when a country experiences recession it makes  such a country to realize that the economic team are not doing enough to stabilize their economy so it also gives room for more economic awareness on how to manage a country's resources judiciously.

Yes, that's right, because of the aggressive increase in reference interest rates carried out by the central banks of various countries in an effort to reduce the rate of inflation, yesterday was hit by Covid-19 until now the economy has not recovered properly. Due to the increase in energy prices and reference interest rates in various countries, inflation has soared , until now we still feel inflation, because the world is also facing the challenge of climate change which will greatly affect state finances, the economy and people's welfare, therefore we have to look for solutions so that the economy in our country improves again, such as improving the quality of ourselves. and develop innovations so that our country can quickly recover from the impact of the economic downturn.

In the current situation, all countries do not always have the same worm and the condition of the world where worms are very good, in fact, our Bangladesh is in this category of people.  The pictures are very good in the country or many categories are very high but there are many categories in Bangladesh and here the salary in garment or any other factory is very low.  The salary of our country should be increased because a minimum or a small person who has lehlpar or a category wage earner should get twenty thousand rupees even if the salary is minimum.  A career or a helper's salary is not equal to the salary of a person who does bad business for a living and develops finances and it becomes difficult for him to live his life.

I think it's better to not feel that way or be negative because I'm sure you won't like its effects. Instead, what mindset we should have is to be positive at all times and believe that things will only get better.

At least, the government or the employer made an effort to increase our salaries even though inflation might still rise because it is still fighting its effects but if we want to ensure that our monies are still valuable, we can do investing. To have an active and growing career is also great, as this ensures financial stability. For now the decline may not be global but there will be times that all will now experienced what the others have experienced. So don't be confident and always prepare your selves.

He/she was right. Although the salary paid to workers now is increased from 5 years ago salary but judging by the fiat currency de-value it is much lower than the previous year's salary and this shows that the global economy is on a downslide motion.
Sadly, the government never agree to this and always tell the people everything is fine while the main cause of the problem start from the yearly printing of new fiat currency.

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.