Asian Economic Crisis Essay, Research Paper
For the last few decades, Asia had been the world’s economic miracle, achieving remarkable rates of growth and building high-quality manufacturing industries in just about anything and everything. However, since the struggle with collapsing currencies and plunging stock markets beginning in 1995, the Asian Economy has become weak. It is now in a crisis situation, where its
financial standing, especially, is at a downfall.
Currently, there are numerous retributions facing us. Inflation has occurred; there is a phenomenon of rising prices, not to mention forced devaluation and privatization. It has come to the point where big booming businesses are going bankrupt. The government is remarkably affected, especially those whose main source of income is tourism. All the companies and businesses which deal with and/or depend on tourism is on its way to impoverishment. This means that export prices had to be raised in order to
stay in competition. It seemed, although, that this wasn t enough to accommodate the money losses. Cutbacks, thus needed to made; extra expenditures and areas of obscurity had to go.
With this in mind, many businesses (mostly private) began cutting back in the employment line. Many workers were fired, or let go, as they put it, because the company couldn t afford the extra disbursements. This may have been beneficial for the companies, but not its employees and their families.
With my father, a Fire Specialist for the Guam Fire Bureau, and my mother, a financial advisor at a national bank, my family may not have been affected in the area of unemployment and retrenchment of workers. However, there are other members of other families that may have been. Because of the decrease in tourists, people who work(ed) for hotels, restaurants, and other tourism-related businesses were terminated. Those who weren t, worked longer hours to accommodate the lack of company employees.
Besides the unemployment problem, another effect the Asian Economic Crisis has imposed is inflation and the phenomenon of rising prices. Merchandise and other Asian exports have risen in cost value in addition to the free fall in the value of domestic currency. Because of this, there is a
slight fall in the standard of living. Shopping for luxuries and even necessities have changed. Because of the increase in cost of most items, we re subject to buying a lesser amount of the products we would normally purchase bountifully. Food, clothing, and computers, for example, are more
expensive than before. Prices have gone up. Therefore, the average family household must cut down on expenses. Something definately needs to be done. However, the solution remains a mystery.