This is what recession basically is but it is a kind of chain reaction which affects everybody involved directly or indirectly. However, recession is the decreasing of currency in terms of value and buying power. Now let us see how recession can damage big and small businesses (Argument). When recession strikes, the owner of the business or the employer tends not to hire new employees to cut down the cost and increase the chances of keep earning some profit. In some cases the employers may stop hiring the employees at all (Kornai, 1994). The manufacturer will not try to do any improvements regarding buying new equipment and launching new products. By not taking these steps which shows downward progress of the company and the share price of that company in the stock market also falls (Evidence). When a large business is forced to reduce its cost on things like promoting new products, launching marketing campaigns and it directly reduces the business opportunities of the small businesses like advertisers, marketing firms and owners of the printing presses. Hence, one decision of a businessman to keep running his business swallows the revenue generation chances of the smaller businesses. This is where recession becomes really devastating and catastrophic for both small and large businesses.. In this article, I believe that it has been seen that the recession is no good thing for business world and also for the employees and general public as their lifestyle is forced to change accordingly. Nonetheless, it supports and proves the point of view of those people and economists who believe that recession is harmful for the businesses.
But some people are of the opinion that recession is not that harmful to the world. What makes them think like that is to be found in the next article which is written by Laurie Bassi and her coauthor. They on the contrary has presented a very opposite picture of recession.