CBGE

About the financial crisis & how we cope with it

How the financial crisis affects us all

The financial crisis has had a huge impact on pretty much the whole world. Certainly some people are affected more seriously than others but nobody has been untouched by it. You may not realize how it has affected you but you can be sure that it has. This is because the economy is so integrated that these days virtually nothing happens that doesn't affect everybody.

The biggest impact of the financial crisis for most people is that it is now much more difficult to borrow money than it used to be. While in the days before the crisis started it could be argued that it was too easy to borrow money things have now gone to the opposite extreme. Now it is much more difficult to borrow than it should be and if you can get a loan the interest rate will be quite high. The two groups that are impacted the most by this are people looking to buy a house and people who are looking to start or expand a business. Even loans that would be considered good risks are being refused.

The other big impact that the financial crisis is having on most people is that their investments are not growing at the same rate at which they used to. This means that things like saving for retirement are going to be more difficult since you will have to save more. On the positive side inflation rates have stayed fairly low as well but this is still not enough to offset the lower rate of return that your investments are getting.

A lot of people have lost their jobs as a result of the financial crisis and this is something that also affects many of us. Even if you are one of the people who has managed to hold on to your job there is a pretty good chance that you are now having to work harder than you did in the past to make up for the work that was being done by the people who have lost their jobs. Of course the impact for the people who have actually been laid off is much more serious than this.

One of the results of the financial crisis that affects everybody is that the tax revenues that the government is able to collect have gone down since people are earning less. At the same time the expenses for the government have increased as they have to deal with all of the unemployed people and trying to prop up struggling companies. The result is that cuts have to be made in other places and the services that the government can offer are being reduced. Given that the government was virtually broke before the crisis started the cuts that the government will have to make will likely be deep.