ECONOMIC RECESSION

IES JOSEP MIQUEL GUARDIA Natalia Jiménez and Miriam Moll 1st year sixth form

If we had to speak about the economic recession, we would say that it is a big problem everywhere. Everybody needs money to live. In our case, we are students and we need money to be able to pay for our studies at university. Coud we do it without money? No, we couldn’t

The economic recession is increasing in our country and the situation is even worse in Menorca. Last year, we had the worst summer ever; the island lives on the tourist industry and last year not many tourists visited us.

We are interested in knowing moew about this topic and that’s the reason why we have spoken to Noelia Martínez, the Economics teacher in our school.

Where did the recession start ?

The economic recession started in USA in 2008 because banks gave a lot of money for mortgages and people couldn’t give the money back and then, banks started to lose money.

Why does the recession affect us ?

It began in the USA, but we all know that this country is the biggest economic group in the world. They control all our money and if they are in recession, the rest of the world is in recession, too. Moreover, banks didn´t have enough money to lend to all those people who needed mortgages. Now people are in such an enconomic problem because they can’t give the money back.

Who do you think the recession affects the most ?

I think the recession affects more to those people whose employees couldn’t pay them their salaries and the companies had to fire workers in order to survive and consequently, they became poorer.

What do you think the Government should do ?

Well, I think the Government is doing all they can do. They are trying to employ people and are doing their best to solve the problem out. People don’t care about all the Government is doing and think they should give more moeny to the society, but as the state doesn’t have money, the government can’t do more. It is a extremely difficult situation to handle.

What would you do to solve it ?

I would encourage job creation. The USA, Germany and France are working to find out a way to solve all our economic problems. Spain should help them to find a way to improve our global economy.