Written by: Mattie Warbelton
One of the key factors in any economy is employment.
Employment generates income-which is used as consumption spending, investment
spending, and savings. In Europe, the most popular employers are the small
businesses. Recently in Europe, there has been new research that showed
evidence that the previously predicted rates of economic growth may be
inaccurate. Now the government is predicting stagnation, simply meaning a
period of slow economic growth.
The news of this stagnation has
caused the small businesses in Europe-who were already having a hard time
earning profits- to panic. Economists in Europe also, “expect the E.C.B. to cut
its benchmark interest rate to a record low of 0.5 percent from 0.75 percent
when it meets Thursday. “ With lower interest rates, the economy it a higher
chance of having to combat inflation, along with an appreciating dollar value.
Because of changes, the small
businesses are recognizing their newly needed concern for their futures.
Sadly the downward spiral of European small business has a pretty long road ahead. In most countries the government supports and provides less to private business
ReplyDeleteThat's what it will be in the future, there will be no small businesses and only large government owned and operated corporations. This will be something that changes the business world drastically
ReplyDelete