Economic hardship is defined as the lack of adequate financial resources to meet basic needs. This can include inadequate income, high levels of debt, and a lack of savings and investments. Economic hardship affects not just individuals but also businesses, communities, and even entire countries. It can create serious economic, social, and political problems for those affected by it.
Explain the theme is economic hardship
In today’s uncertain economic environment caused by COVID-19 pandemic crisis many people around the world are facing economic hardship in one form or another. Job loss has been rampant with an estimated 200 million people now unemployed worldwide which is a devastating hit on their livelihoods and prospects for future earning potential. Other areas impacted include the rise in poverty rates where families have had to make difficult choices regarding food security while trying to get access to essential services such as health care when they don’t have the resources to pay for them out of pocket or through insurance plans that are becoming increasingly expensive due to rising costs associated with providing these services. The effects of job loss also trickle down into other industries affecting small business owners who rely heavily on consumer spending in order to keep their businesses afloat which then leads to further job losses within those sectors as well.
The importance of government intervention cannot be overstated during times like these when so many people face economic hardships leading from unemployment benefits programs designed to help the unemployed get back on their feet again after having lost their jobs through no fault of their own; targeted aid programs aimed at helping those living below poverty lines; public works projects that act as incentive for hiring new workers during times when there isn’t much demand due low wages or other factors limiting employment opportunities; interest rate cuts approved by central banks across different countries in order provide relief from increasing loan payments; stimulus packages granted by governments straight into bank accounts belonging either individuals or companies so they may use them towards covering expenses related with keeping up business operations; tax incentives designed encourage domestic consumption thereby boosting local economies amongst others all leading from increased government spending that should help alleviate some economic pressure off most citizens despite being costly for governments themselves if done correctly will benefit both sides equally eventually leading towards an eventual recovery from this current global recession we find ourselves immersed in right now.
However there are still certain challenges concerning policies surrounding relief efforts particularly how effective certain measures taken thus far have been at alleviating suffering brought about this crisis although its too early yet judge results given current situation has only been going on since March 2020 . Another factor worth mentioning is distribution inequity more specifically how differently each country’s relief efforts are targeting different demographics based on pre-existing inequalities structural racism gender inequality etc Therefore steps must be taken ensure everyone regardless race gender religion sexual orientation socio-economic status etc receives proper aid especially since statistics show most groups already disadvantaged before crisis began stand lose disproportionately more than others throughout rest period causing further disparity between rich poor classes long run So while figuring out appropriate policies crucial step must simultaneously work rectifying existing disparities found within society concurrent order prevent similar situations happening again near future