Discussion of the Problem
Economic recession entails multiple challenges for all stakeholders, posing a threat to the very existence of SMEs, challenging large businesses, and increasing the extent of economic insecurity in citizens. The hurdles that companies have to overcome to continue their functioning and meet the bare minimum of financial goals to avoid bankruptcy represent the major threats for entrepreneurs. Therefore, exploring the issues that create additional options for retaining profits and staying afloat in an environment rife with risks is central to companies’ existence during the recession. For this reason, opportunities that supply-side policies provide for companies during a recession need to be examined. Due to the opportunity to increase the development of aggregate supply and set the premise for long-term economic growth, supply-side policies need to be promoted as the vehicle for galvanizing business development during a recession.
Research Support to Date
Economic recession is one of the inevitable stages of development. Occurring as a part of a larger economic cycle, it typically results from the failure to prolong the expansion process and the inevitable passing of the peak business development (Flickenschild & Afonso, 2019). However, with a reasonable strategy for utilizing the existing resources for boosting economic growth, overcoming recession becomes a possibility (Dosi et al., 2019). Bremer (2020) argues that the introduction of supply-side policies as the means of directing the evolution of organizations can contribute to faster recession management. The reasoning behind the specified argument is understandable since the development of supply-side policies will allow shaping the supply chains of powerful organizations delivering a significant contribution to the state’s economy (Mankiw, 2014). However, further assessment of the specified issue is needed since multiple factors shaping the changes in supply and demand dynamics are yet to be analyzed. Thus, opportunities for reducing the risk of recession and the chances for prolonging the period of economic growth will emerge.
Anticipated Roadblocks in Research
Although the goals of this study are quite clear, the problem is defined, and the gap in the literature has been identified, it may be complicated by several additional hindrances. Specifically, this study is presently very broad, which means that the amount of time needed to embrace all factors involved and gather the data for analysis will take quite a lot of time. Therefore, time constraints represent quite a substantial hindrance on the path to analyzing the situation.
Moreover, it is important to recognize state-specific factors defining changes in supply and demand, as well as particular policies that drive the development of economic relationships. Since the specified policies vary extensively depending on the state in which they were produced, the outcomes of the assessment may vary substantially. For this reason, generalizing research outcomes will be needed, which, in turn, will drive the extent of results’ precision down remarkably.
Final Comments
Although economic cycles dictate the necessity to pass a period of recession to experience an economic resurgence in the future, it is possible to delay the recession and reduce it to a minimum, which can be achieved by reconsidering the current supply-side policies. By integrating the standards that will allow companies to update their supply chains and make more effective use of their resources, one can ensure that businesses will survive a recession. Additionally, more effective control tools for managing the factors defining the development and scope of a recession will be established.
References
Bremer, B. (2020). The political economy of the SPD reconsidered: Evidence from the great recession. German Politics, 29(3), 441-463.
Dosi, G., Pereira, M. C., Roventini, A., & Virgillito, M. E. (2019). What if supply-side policies are not enough? The perverse interaction of flexibility and austerity. Journal of Economic Behavior & Organization, 162, 360-388.
Flickenschild, M., & Afonso, A. (2019). Networks of economic policy expertise in Germany and the United States in the wake of the Great Recession. Journal of European Public Policy, 26(9), 1292-1311.
Mankiw, N. G. (2014). Principles of economics. Cengage Learning.