Social Stratification

[Name of the Institute]

Social Stratification

Material Culture

Recession refers to the slowdown in the economy. The macroeconomic indicators during recession vary in various ways, for instance, the production, GDP, spending, investment, employment and business profits fall during the recession. However, unemployment and bankruptcy increases. Recession occurs when there is an increase in the spending following the decrease in supply or bursting of the economic bubble. Government cope with recession by employing the expansionary measures, and policies for instance, increase in government spending, decrease in taxation and increase in money supply. Recession is a part of business cycle, however, one business cycle can trigger the ongoing unfavourable events. The global recession of 2008 and 2009 brought unrest in the business community. In economic recession, the demand for goods and services is reduced; therefore, the companies need to watch their stock levels closely. Stock cost money, particularly if the company uses borrowed money to produce or buy stocks. If a company's stock levels grow it causes significant issues. The question of remaining in the business becomes critical. The following approaches can help resolving this problem (Kendall, 2012).

Businesses should cut their stock levels to what they can sell. The reason for this is that, an economic recession changes the demand for goods and services, therefore, the companies need to change the supply depending on demand.

Companies can offer the lower- cost items in the market to sell. For example if a company is in the luxury market, the customers will not be significantly affected by the recession, and will continue to buy the products. On the other hand, if a company operates in the middle- class market, the recession will hit the customers, lowering down their buying capacity. Therefore, the business will have to offer similar but cheaper stock.

The Deviance Strain Theory

The Deviance Strain Theory indicates a drastic impact of recession on the social and economic structure of a society. The basic impact of economic recession is the decrease in income level and an increase in the level of unemployment. The scarcity of resources or necessities and deteriorating purchasing power causes a gradual increase in crime level. The middle class falls into the lower segment and the lower class is dragged to the streets. Poverty is the main cause of Crime. Crime in most parts of the world is usually caused by the problem of poverty. If there is a decrease in poverty, there will be ...