It seems like every time I check the price of those adorable sandals that I've had my eyes on for a while now, a digit or two seems to have been added to the number making the price tag all the more obnoxious. However, when looking beyond those not so profound gadgets, we notice that there’s a general inflation going on around us. Prices for all kinds of goods and services have risen to include food, clothes, cars, electronics, fuel, gas, real estate and all the way to a citizen's legal right to things such as education and health insurance.
Skimming through the past and finding the main reason for this inflation would probably lead us back to the global recession that occurred a couple of years ago. It started in the USA back in December 2007, and it seems appropriate to say, infected the world from there onward. This caused the stock market to drop or crash in some cases, prices to rise, industries to halt, private and public corporations to collapse and thus many partnerships to cease. Consequently, a general rise in unemployment rates caused a “general” drop in the flow of money which resulted in a “general” decrease in demand for products being produced, and thus fewer products were produced to match up with the demand rate.
Going back to the main point, a country such as Jordan, which lacks primary resources and doesn’t have enough money to put its very few resources into work, depends a lot on importing basic goods and services from other countries. That’s why we were affected to a great extent when economies of other countries started to crash down and fall apart.
So, while the exterior factor is somewhat incontrollable and probably out of our reach, handling the situation has to be from within. Also, while handling money worldwide has a new meaning now, we still maintain our old mentality and firmly hold on to it. Business owners, advisers and consumers are refusing to compromise. Profit margins are still maintaining the same heights and customers want products and service with the old expectations. This by all means defeats any economic or business rule. Therefore, entrepreneurs should resign themselves to the fact that profit margins might face drops every once in a while. After all, that’s part of the game. This is emphasized and amplified to the organizations that are claiming to be non-profit and yet their prices seem to rise beyond what’s needed to cover the initial cost for the good or service.
For what it’s worth, members of society should be well aware that our country is going through a rough patch; so while we were all here to benefit from the economic boom that occurred in Jordan during the beginning of the 21st century, we should be here to take the heap when the going gets tough. After all, you can’t expect to eat your piece of the cake without cleaning your dish.
Written By: Tara Nazzer, 10
Skimming through the past and finding the main reason for this inflation would probably lead us back to the global recession that occurred a couple of years ago. It started in the USA back in December 2007, and it seems appropriate to say, infected the world from there onward. This caused the stock market to drop or crash in some cases, prices to rise, industries to halt, private and public corporations to collapse and thus many partnerships to cease. Consequently, a general rise in unemployment rates caused a “general” drop in the flow of money which resulted in a “general” decrease in demand for products being produced, and thus fewer products were produced to match up with the demand rate.
Going back to the main point, a country such as Jordan, which lacks primary resources and doesn’t have enough money to put its very few resources into work, depends a lot on importing basic goods and services from other countries. That’s why we were affected to a great extent when economies of other countries started to crash down and fall apart.
So, while the exterior factor is somewhat incontrollable and probably out of our reach, handling the situation has to be from within. Also, while handling money worldwide has a new meaning now, we still maintain our old mentality and firmly hold on to it. Business owners, advisers and consumers are refusing to compromise. Profit margins are still maintaining the same heights and customers want products and service with the old expectations. This by all means defeats any economic or business rule. Therefore, entrepreneurs should resign themselves to the fact that profit margins might face drops every once in a while. After all, that’s part of the game. This is emphasized and amplified to the organizations that are claiming to be non-profit and yet their prices seem to rise beyond what’s needed to cover the initial cost for the good or service.
For what it’s worth, members of society should be well aware that our country is going through a rough patch; so while we were all here to benefit from the economic boom that occurred in Jordan during the beginning of the 21st century, we should be here to take the heap when the going gets tough. After all, you can’t expect to eat your piece of the cake without cleaning your dish.
Written By: Tara Nazzer, 10
With the Help of: Shahd Al-Ouri, 10
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