How do economic recession affect people's behavior Essay

How do economic recession affect peoples sort - Essay vitrineHowever, as the theory points break, the knowledge is never complete and this imperfection leads to economic growth. This may not ceaselessly be so. In times of economic recession, the more the awareness of bad news, the greater is its impact on gay behavior and the economic crisis.According to Charles Hodge, if a human being is assumed to behave out of necessity, he loses his identity as a rational person capable of deciding based on his thoughts and analysis (Hodge as cited in Cleveland, 2000). He becomes a mechanical person and can not be held responsible for the consequences of his behavior. Similarly if he is assumed to base his actions on the contingencies, he is imbibed with irrational and autocratic ply of determination, acting even against his own will. Hodge rejects both these strains of behavior that emerge from the utilitarianism theory. In the third behaviorpattern viz., certainty, the individual behavio r is explained by the individuals own rational analysis of a stance and determination of what is best in his own interest, and is embraced by Hodge as the more appropriate explanation of human behavior.The subprime crisis in the USA led to large scale defaults in the mortgage industry and its contagion core soon engulfed a host of other sectors like the financial institutions, banks and manufacturing industries. Bank failures dried up the faith available for the business and industry and this has in turn led to significant loss of jobs and consumer confidence. All the study economies of the world are facing a downturn due to globalization. Mass communications media ensures that individual behavior is influenced and aggravated by the frenzy of collective disaster.Loss of consumer confidence and credit squeeze are the major factors impacting human behavior in these circumstances. US economy which is characterized by a high degree of consumer spending, is witnessing consumer