Saturday, November 3, 2012

INSIGHT: Open Your Eyes To The State Of Global Economy

I was recently in a discussion with a friend who did not see the merits behind joining the direct selling industry even in these economic times. I was left wondering if there were people out there oblivious to the fact that times are tough. Countries, businesses, people...we are all still feeling the effects of the recession that started back in December of 2007. Though some claim that the recession is over the reality is that it set in motion a great domino effect that shows no signs of slowing down. Even people with jobs are affected. Nearly a fifth of employed Canadians are working poor, earning less than $17,000 a year, reflecting a shift in the economy towards lower-paying services jobs.

Inflation, for instance, has been on a steady rise in several countries while the average earnings of most people around the world remain depressed and has seen prices going up for even the most basic of needs. When the general price level rises, each unit of currency buys fewer goods and services which also reflects an erosion in the purchasing power of money, a loss of real value in the internal medium of exchange and unit of account in the economy.

A service station displays its gasoline price
in Washington, D.C., March 1, 2012
Another gas station sign, under the same company,
 is seen in Washington, D.C. on March 30, 2012 (29 days later)

In an article written last October in the NY Times, it was reported that global prices for meats, dairy products and cereals had resumed rising. Food prices are rising in 2012 because of high gas prices, which themselves are caused by high oil prices. Like I said in the introduction, a great domino effect. DEFRA, the UK government department responsible for policy and regulations on the environment, food and rural affairs, said that in the last five years food prices in the UK have increased “considerably more” than in the rest of the European Union. To read more about that, click HERE.

I was reading an article in The Globe And Mail about the high rise of the usage of food banks in Canada. Food banks, as I have recently come to learn, sprang up during tough economic times in the early 1980's as a temporary way to alleviate hunger. In the past four years, due to the recession that has gripped the world economy, their need has broadened from employed people to homeowners and two-parent families. Recent statistics show nearly 93,000 people are first-time clients of a food bank. To read more about this, click HERE.

Volunteers working in one of the many food banks in Canada

According to an article on FX-MM, the UK economy is suffering with a banking system that also remains on life support. 6000 jobs could be lost as electrical store Comet goes under. The electrical retailer's inability to get the appropriate cash flow running through its stores to survive acts as a sharp reminder that not only is cash king and critical to the survival of most businesses, but in the case of this retailer it was its reluctance to fully embrace the online world.

On October the 31st, it was reported on The Star that Spain's recession had extended into the third quarter while inflation stayed high in October indicating their government austerity programme to cut the public deficit was also pushing up living costs. And although their gross domestic product (GDP) shrank 0.3% quarter-on-quarter between July and September, Estefania Ponte, an economist at Madrid-based broker Cortal Consors, said “It does not mean the economy is doing better, but only shows the families have brought forward purchases ahead of the VAT (value-added tax) hike.”

People wait in line in front of a government employment office
 in a suburb of Seville, Spain

Also on October 31st, in an article on the BBC website it was reported that Greece's economy was expected to shrink by 4.5% next year and government debts to rise to 189% of economic output. Unemployment in Greece stands at 25% of the labour force, while across the eurozone it was revealed that unemployment had risen to 11.6% in September. I personally could not help feeling a lot of dread as I continued reading the article, because I know that without paying jobs, most people without a "Plan B", as we direct sellers call it, that offered some sort of supplemental income would be the hardest hit casualties.

On August the 14th, it was reported on Bloomberg that the Czech economy had extended its decline and Hungary had returned to a recession in their second quarter. The Czech and Hungarian economies, the second and third largest among post-communist European Union members, each contracted 0.2 percent from the first three months of the year. And even though the central bank  made a forecast in September that their economy will contract by 0.9 percent this year before rebounding by 0.8 percent in 2013, one is left wondering what people, who lost their primary source of income, will do to survive till then.

Those laid off from their jobs are always left wondering
"How will I survive the coming months?"

Here was Chas Kaufmann's life, as reported on Huffington Post, before the Great Recession: $28,000 in restaurant tabs in a year, cruises, house parties with fireworks. His Mr. Gutter business was booming in the Pennsylvania Poconos. And now: "We mainly shop at Sam's Club and portion out our meals. We spend $4 to $5 a night on eating." On another website, a guest called Goldie shares their story, "I was laid off in 2009, finally found a part-time job in April 2011. The ad I responded to said up to 20 hours with the promise of full-time in the future because of expansions. Instead my hours have been cut twice. I went from making $42,000 at my last job to $120 a week at my current. And people still have the nerve to say "a job is a job". I can't pay my bills on this, it's a joke."

"I am 56 years old and everything that I have saved is gone. Now its time to start over." This is an exert from an article in the LA Times on Friday 2nd November as Barry Schultz Sr. from Lewiston Idaho, a plumber who has worked for himself for the last 33 years, shared his story. Chris West from Los Angeles shares his views by stating that even with a University Degree there is no guarantee of a future. He was laid off in May 2009 from a law firm where he worked for the last 17 and a half years and even though he landed a new job with another firm, his salary is much lower.

People seeking jobs wait in line to speak to over 60 employers
 at an employment fair May 3, 2012

Heart breaking tales like these can still be found all over the news. You might even know of someone, if not yourself, going through this. Everything I have posted thus far has been reported this year in the news for most of the major economies of the world. I am left to wonder that if the situation is that bad for them, what of the people living in poverty stricken parts of the world? The struggle to survive the day must just be getting harder and harder. I find it utterly bewildering that when people are introduced to an opportunity that can earn them an extra income by referring 2 people and training those 2 to do the same, they cringe up and give excuses as to why they cannot join!

The cost of joining legal direct selling opportunities may be high now, but the cost you will pay down the line for not giving it a try just because of a basic emotion like fear, for some, is even higher. Think about it for a moment. By rejecting these kinds of business opportunities that are at your fingertips, you are not giving yourself and anyone you care about the chance to do something that has the potential to rid you of the struggles being faced if not by yourself then by others due to the recession.

When you choose to pursue direct selling, you are choosing to take an active role in your financial future and in the economic future of your respective country. 

Apart from owning great products, direct selling offers you flexible working hours, a chance to gain supplemental income and helps increase your business skills with the help from training events hosted by the direct selling companies. Despite what people think, direct selling helps create more jobs as these companies need people to manufacture and transport the products they sell. The money we direct sellers make is spent in the economy, on family vacations, luxury products and even on down payments on homes which all fuels the economic recovery.

QNET offers people like you the opportunity to not only earn supplementary incomes and own fantastic products, but to help others like yourself do the same for themselves. As you secure your financial future you inevitably help others who join your team secure theirs. No other industry can promise you that. As Pathman Senathirajah, V Managing Director, likes to state in his training  "Wake up and smell the coffee" because this industry is taking over the world. Figure out your dream for the future you desire and let QNET get you there with their powerful QINFINITE business system that provides you 8 ways to earn. if your are ready to take the reigns and do something about your financial future, allow me to help you get underway. Leave a comment below to share your views and feedback to what you have read here today.

No comments:

Post a Comment

Do you have any questions or feedback pertaining to what you have read here today?