One Good Thing About Our Recession

From CNN Money, “Banks Look to Cut the Fat”. One of the long-term benefits of a recession is that every company tends to cut some fat. The end result of this is a more competitive company which wastes less money. Although the short-run layoffs are painful, the long-run results in a more competitive company. In today’s global world, competitiveness is vital for successful economies because it creates jobs.


21 Responses to “One Good Thing About Our Recession”

  1. 1 Emily Bonzi May 19, 2009 at 10:28 AM

    It is good to hear that people are beginning to see the good in all the bad. That can serve as an indicator that we are beginning to climb out of this whole and look to the future. As a result of the recent economic recession, many lessons will be learned by the banks that will be used as guidance for future decisions. It is a shame it took something of this magnitude to begin change, but after this is all over the banking system will be left wiser and stronger.

  2. 2 Rachel Sturm May 19, 2009 at 5:15 PM

    Finally something positive! Yes, we made the mistakes that lead to this recession, but a wise person will take these mistakes and learn for them. The recession is painful now, but it might lead to not only more competitive companies, but a more competitive US. We could once more be a leader in industry after we come out of the recession and bring more jobs back into the US…at least that is my hope.

  3. 3 Pat Kolcum May 19, 2009 at 5:56 PM

    It is really nice to actually hear something positive about of economy, lately its been all negatives. People now know what will happen when they don’t make wise decisions to help avoid future economic problems with a more competitive market.

  4. 4 Nikolas Bunton May 20, 2009 at 3:02 AM

    I guess i’ll join this optimistic bandwagon: It’s a relief to see the media finally looking at the positive outcomes possible from this rough recession. And, not to belittle the hardships of the “fat” who are now jobless, economic problems such as our current situation always have their contributions. By forcing companies to “cut out the fat” and gain back its internal focus, this recession is creating competition that could, in the long-run, create more jobs than were ever lost. By having this lesson-learning mentality towards the economy we can see the “big picture” in this economically dwindling time.

  5. 5 Alysaa McKinney May 20, 2009 at 10:22 AM

    This is of course a good thing, and is a result of the shift in market conditions. One thing I think should be avoided is forcing change on these companies. Legislation such as enforced caps on bankers and executive pay and bonuses, while they may please the outraged masses baying for the bankers blood, will only serve to further undermine the competitiveness of American companies by driving the top performers to more economically liberal shores. Let the market do what it does best and reallocate and reorganize itself without the clumsy hand of government intervention.

  6. 6 Javier Ochoa May 20, 2009 at 12:17 PM

    I think it is good to hear that the there is positive in this Economy. We always hear about the Economy doing bad, and things being cut back, but for once, it seems to be a good thing. Something I like is that companies are beginning to cut back on how much they spend on their workers, like when they travel. This is something that is not really that necessary, to pay extra for a seat on a plane. It’ll be cheaper to ride normal, and it’ll still take you to the same place.

  7. 7 Debbie May 20, 2009 at 1:19 PM

    Well, it is a breath of fresh air to see a positive report on the economy. We all have been troubled and obsessed with the economy and the role the banking industry played in our current situation. I think that unfortunately for the “worker-bee,” they are on the losing end. Because they are the ones losing their job, and are not necessarily the “fat” that needs trimming.

  8. 8 Leonardo Sanchez Econ 101 May 20, 2009 at 3:55 PM

    Yes, It is great hearing good news after such negative remarks about the economy. i also know that everyone can gain great

    wisdom after each mistake the U.S has made. It is natural. The world is not perfect but every nation needs to walk the path of

    good ethics. Yes the economy may be low right now but we will
    pass this and look to the past that if we made it through this

    economy and lived our nation may do anything.

  9. 9 Mva89 May 20, 2009 at 8:16 PM

    Great to finally hear something positive amongst all the bad we’ve been bombarded with lately. I think this definitely is a positive thing that we learn from the recession and will only create skills that will be beneficial in the future. In fact, I think everyone, including households, are learning valuable lessons during this recession. We have been careless about money and taking things for granted and made mistakes that led to this recession. we are learning from our mistakes.

  10. 10 Carl Hernandez May 20, 2009 at 8:22 PM

    A good thing about this recession is if you already have money saved up, with prices down you can get good deals on pretty much anything for example cars and houses. This will also help people learn how to save thier money better and learn not to take things for granted.

  11. 11 Craig K May 20, 2009 at 8:32 PM

    It’s nice to read an article highlighting the positive possibilities of our countries recession. I thik one move that will difinitelly help us out in the long run is the cutting of jobs in companies. This will make companies more competitive, which stimulates the economy. Making minor saving cutbacks such as black and white printing will help a small amount, but it is the big activity that will pull us out of recession. Wells Fargo had the right idea in buying Wachovia, and I think we will see that risk pay off for them as the recission ends.

  12. 12 Michael DeBoer St. Mary's May 21, 2009 at 12:58 AM

    referring to what Craig K said above, I disagree how people think that the recession brought a positive impact to our economy. It is true that it will create jobs in the future, but at the same time, how many jobs did it loose? countless. And referring to the low prices on consumer goods, It is all pretty much equivalent to how much money one lost in the stock market or whatever assets households had (as well as real estate). In conclusion, I believe nothing positive came out of the recession.

  13. 13 wordtown May 25, 2009 at 12:47 PM

    It’s good to hear that things are beginning to change. Companies are cutting back on the so called “Fat”. In today’s business world it is very competitive and you got to be on your toes. It is better for the companies that are cutting back on money use and using everything wisely. In today’s world you have to be on top of your game because one slip can mean your job.

  14. 14 Andrew Curry May 25, 2009 at 6:57 PM

    it amuses me taht people are being so optimistic about the situation. i like how wiht one tiny little positive statement made everyone suddenely feel a whole lot beter about everything.

  15. 15 Claudio Ramirez May 26, 2009 at 12:09 AM

    Its always good to hear that something even if its only one thing is positive that comes out of a recession. Its even more important that its gonna have a major impact on the job market in the long-run that is going to help create and reform jobs. The way companies spend their money is very important and vital to the economic world.

  16. 16 quique May 26, 2009 at 10:13 PM

    as much as short run sacrifices are needed in the long run it pays off when companies cut fat because it is the long run that is more important i think becasue its the kids who we need to start loking at. its them who will be getting the torch passed to them

  17. 17 Kit t Kat July 14, 2009 at 4:41 PM

    It is nice to hear something good coming out of something that causes people a lot of trouble. I learned from Susan Jeffers book, feel the fear and do it anyways, always think positive no matter what and make lemonade out of lemons. Hopefully people can began to make things better despite the bad circumstances. Especially considering company tends to cut some fat in reccesions. The end result of this is a more competitive company which wastes less money.

  18. 18 Jessica Schimke August 6, 2009 at 2:33 AM

    I think it’s awesome that we can find some sweetness in this mouthful of bitterness. I asked myself how the recession has positively affected me, and I realized that it has made me value my money more.. A lot more. Every dollar I earn is mindfully monitored, which has allowed me to track all my expenses and see that I was originally spending too much money in certain areas. I guess I’m thankful for this revelation just as the corporations are thankful for their competitiveness.

  19. 19 Kittygirl707 August 6, 2009 at 2:27 PM

    Hmmm, did anyone else see the part about “the company has ordered employees in its investment banking division to fly coach on short business trips and to refrain from tipping more than 15% on meals and taxis”??? Grrrr. I disagree with this viewpoint. Yes, I think it should be required that executives fly coach but I am in total disagreement with only 15% to service workers. They don’t get paid enough as it is most of the time. I do my best to tip at least 20% every time. Unless the service is absolutely horrid beyond belief. I think that corporate mandates to cut spending on what can make the difference between eating and going hungry for some is not at all acceptable.

    And to the other points, yes, we should all be looking for positive here. Without a positive outlook none of us will be able to stand all the other doom and gloom the media is projecting.

  20. 20 Anna Chkhikvishvili December 6, 2009 at 8:09 PM

    I dont think that anyone should look at recession as a positive thing. People are losing jobs and families are surviving, barely. Of course competitiveness for jobs is good because that means that a lot of employers are gonna be getting the best candidate for that job position. But on the other hand, it is bad because not everyone will have a job in the end.

  21. 21 TTS06 December 17, 2009 at 1:27 PM

    The recession is good for one reason and that is because it is like a restart button for young people and oppurtunity for better legislation to be passed benefitting consumers and the country

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