I’m sure you could be thinking “Is this guy mad?” as it tends to happen when somebody thinks the other way round. The Heading would give you a quick explanation on what I will be sharing with you.
Let us start with an economic term “Recession”, so, what is a Recession? Well, it is nothing but a time period wherein the economy goes on a hibernation of sorts just like the computer. No activity happens and the revival depends on the country’s Government’s policies. A good example would be the recent 2008-09 United States recession.
Now most of the Economic spectators would say “Do not spend more on weddings, when the economy is in recession”, I would say this is a negative statement, Let us have a more positive approach to this situation and see what happens when you spend more in Weddings during this time. Greater spending on Weddings during this time will induce more money into the economy and increase the circulation of money, thus helping faster revival of the economy. You do some great deed to the country by spending more.
Let us get the use of some numbers here to justify the claims,
In an artificial economy, where the population is say 10,000 and the average money spent normally is say 1,000/person, and say there are 100 weddings happening in a year and the cost spent on these are 25% of the total economy. Now this economy is hit by recession and the Average amount spent is 800/person.
Now, here the money circulation reduces and the balance of income starts shifting towards one side. Here if the amount spent on weddings continues to remain the same or increases a little, what will happen is it will pump in more money into the economy and thus increasing the average amount spent by an individual. Since, the overall economy is going to be influenced by the spending and thus revival happens earlier than expected.
So let the money be spent to keep the economy steady.