Does a downturn in the economy hurt all companies equally Pr

Does a downturn in the economy hurt all companies equally? Provide several examples to support your answer.

Solution

No, a downturn in the economy oes not hurt all companies equally. It varies industry to industry and hence the impact of recession or depression on a company depends on which industry does it belong to. There are some industries which provide basic needs ot the people. These industries are least affected by downturn in the economy. for example, food industry, education sector, medicines (not health care because some of the health care is a luxury like routine check ups, maintainence courses etc) are least affected by a downturn in the economy. As far as urgent health services are concerned, they remain almost unaffected by recession but othr services are affected.

The brief shows that a recession almost immediately leads to loss of coverage for many people. Studies show that a 1.0 percentage point increase in the unemployment rate results in a .59 percentage point increase in the uninsured. While few employers actually drop coverage, they may cut costs by changing the benefit and/or restructuring cost-sharing with employees. Typically, employers in low-wage jobs (or those working in small firms) are most likely to be uninsured after losing their job, but this recession is affecting a broader swath of the workforce.

The effects of the economy also include changes in the demand for (or access to) health care—as well as the financial status of practitioners and health organizations. Reports from across the U.S. describe falling revenues due to decreased demand for less non-urgent or elective care, more patients unable to pay their medical bills, significant losses in investment income, less charitable giving and cuts in state and federal health care funding.

The full extent of the impact of recession on education is not very clear but no one wants to take a child out of school in the middle of a year. Most would rather invest their redundancy pay-off, or flog the pictures on the wall, than disrupt a child\'s education and paying school fees in advance – at a discount – seems a canny choice when times are hard.

As far as luxuries are concerned, these companies are affected greatly by recession.

Basicallly companies producing such product whose consumption can be postponed are affected more by the downtrn in the ecnomy as compared to those companies which produce such things postponement of whose consumption is not possible.