We’d like to introduce you to an old-fashioned term: stewardship. It basically indicates that you’ve been entrusted with looking after someone else’s property. Because you have someone to answer to, managing a group of people or resources at work is an example of stewardship.
Is it clear where we’re going with this? You are, indeed, a steward of the money and resources that God has entrusted to you. Of course, you must now assume personal responsibility and work diligently. Indeed, because God has entrusted you with a task, you must treat it with seriousness! But, at the end of the day, God gives you the power to make money and accumulate wealth, as we can see in this verse:
You can think to yourself, “This money has been created for me by my power and the strength of my hands.” But keep the Lord your God in mind, because it is he who provides you the power to produce prosperity. 8:1718 (Deuteronomy) (NIV)
Because God is the true owner of everything under the sun, you can trust Him with the money He’s given you! He is the sole source of our safety. You should not put your reliance in money, as 1 Timothy 6:17 (NIV) advises, but rather in God “Have faith in God, who abundantly provides for our happiness.”
What does the Bible say about money in the Bible?
“God being the source of all power, His power flows into society through the individual,” writes the late James B. Rose, author of “A Guide to American Christian Education for the Home and School: The Principle Approach.” This provides each individual with their own worth.”
A nation founded on God’s word should emphasize each person’s worth in Christ, which means that each citizen’s contribution should be personalized, acknowledged, and rewarded as an individual contribution rather than as part of the whole.
Some say that socialism is a more effective system since it aids in the provision of services “Fair wages” for the poor and persons with disabilities. Christians, on the other hand, are commanded by God to help and support those who are in need. According to Proverbs 19:17, “Whoever is generous to the needy contributes to the Lord, and the Lord will repay them for their generosity.” A free-market system gives us the freedom to help those who are less fortunate, allowing them to experience Christ’s work in our lives.
Because it generates motivation, a capitalist society is the ideal economic system. In this system, a person gets rewarded for the amount of effort he puts into a firm. The harder someone works, the more likely he is to earn more money. This incentive encourages people, resulting in a vibrant competitive environment in which items improve in an attempt to outperform competitors in that market. Because quality products are manufactured at a reasonable price, economic opposition ultimately enriches the lives of those who are a part of the system.
What does God have to say about adversity?
When we turn to God for help, he will provide us with the strength we need to get through the difficult times. Here are a few verses that testify to his unwavering love for us and how he will strengthen us when we pray to Him.
When our strength is gone, His strength is flawless. When we are unable to continue, he will carry us. The weak become powerful as they are raised in His might. His strength is unsurpassed.” Steven Curtis Chapman and Jerry Salley
16:8 (Psalm) I’ve made it a point to keep the Lord in front of me at all times. I will not be rattled since Jesus is at my right hand.
3:2 Thessalonians The Lord, on the other hand, is trustworthy, and he will strengthen and safeguard you from the evil one.
8:28 (Romans) And we know that God works for the good of those who love him and have been called according to his purpose in all he does.
4:1113 Philippians Not that I speak from a position of want; I’ve learnt to be content in any situation. I know how to live on a shoestring budget and how to live comfortably; in whatever situation, I’ve figured out how to be satisfied and hungry, to have plenty and to be in need. Through Him who strengthens me, I can accomplish everything.
1 Chronicles 1:9 Be brave and strong; do not be afraid or discouraged, because the Lord your God will be with you wherever you go.
31:6,8 Deuteronomy Be strong and courageous, and have no fear or dread of them because the Lord, your God, is going before of you. He will always be there for you; he will never abandon you. Do not be alarmed or alarmed.
What is God’s intention for our money?
A steward is someone who looks after another’s assets. Each of us is a manager rather than a business owner. God is the owner, and we are to follow His instructions. All of God’s promises concerning His gifts in this area are based on the concept of relinquishing possession. If we refuse to do so, we will never be able to experience God’s financial plan. As a result, our lives will be marked by constant upheaval and anxiety in the financial realm.
It is critical for a Christian to trust God in all situations. We can have absolute financial peace if we think that God truly loves us and will only give us the amount of money that we can handle without stress. But only after we’ve given Him everything of our resources.
Money, it becomes evident, is a place where God may develop (and we can discover) our trustworthiness. “Who will entrust the true riches to you if you have not been faithful in the use of unrighteous mammon?” Luke 16:11 is a passage from the Gospel of Luke.
Why do Christians struggle to put their faith in God in this area? We don’t trust He will always do what is best for us. As a result, we have a tendency to desire to keep a portion of what we have. However, we will never see God’s whole purpose for our life until we have experienced financial freedom.
Let’s look at a few prevalent myths about money to dispel some of the “religious mythology” surrounding it, and then evaluate what attitude God wants us to have.
Wrong! Poverty does not have any intrinsic virtues. There are dishonest poor people just like there are dishonest wealthy people. Look through the Bible. Because of spirituality, God has never impoverished anyone. Even in Job’s situation, God allowed his wealth to be taken away as a sign of His faithfulness. Job’s riches was doubled when he remained faithful to God. God never mentions spirituality in the context of poverty. As a result, Christians cannot achieve spirituality by starving themselves or their family.
God punishes those who abuse or obsess over money, not the money itself. God identifies money generation as a spiritual gift in the Bible. The talent of giving is described in Romans 12:5-8. Obviously, if there is a gift of giving, there must also be a gift of gathering, because giving without gathering is inconceivable. Every time God is mentioned in the Bible, he guarantees that what we contribute will be returned to us.
Money and happiness have nothing to do with each other. “Instruct those who are wealthy in this world not to be egotistical, nor to place their faith in the uncertain nature of wealth, but in God, who abundantly provides us with all things to enjoy” (1 Timothy 6:17). If wealth could bring happiness, then the world’s wealthiest people should be the happiest. Instead, they’re concerned about what they’ll do with their money, how they’ll leave it to their children, and the impact it will have. And few children are grateful for the big sums of money their parents leave them. Most people who have grown up in prosperity have witnessed the devastation that an excess of money spent irresponsibly can have on a family.
This is also untrue. It is not a sin to have money. In fact, when God discovers someone with the right attitude, He frequently blesses them with huge wealth. It was not God’s desire to taint what would become the nation of Israel when He put wealth to Abraham. When Solomon begged for wisdom so that he could control the people of Israel, God granted him both wisdom and tremendous wealth. “Thou hast made him to rule over the products of Thy hands,” says Psalm 8:6. This is God’s management of everything on the planet for us.
Many people believe this is based on the Bible. “I’m not sure where,” they add, “but the Bible says money is the root of all evil.” That is not at all what the Bible states. “For the love of money is a source of all kinds of evil,” Paul writes in 1 Timothy 6:10, “and some by craving for it have wandered away from the faith, and pierced themselves with many a sorrow.” This is God’s point of view; the love of money is the source of all evil.
This mindset is compared to the affluent young ruler by Christ. “Good Teacher, what should I do to inherit eternal life?” he inquired as he approached Jesus. “Why do you call Me good?” Jesus asked him. Except for God, no one is good. ‘Do not commit adultery, do not murder; do not steal, do not bear false testimony, honor your father and mother,’ you know the commandments. ‘All these things I’ve kept from my youth,’ he remarked. And when Jesus heard this, He replied to him, ‘There is one thing you lack; sell everything you own and give it to the poor, and you will have treasure in heaven; and come, follow Me.’ 18:18-22 (Luke 18:18-22).
Because he was incredibly wealthy, that young man turned sadly and walked away. “How difficult it is for the wealthy to enter the kingdom of God!” Jesus exclaimed. (See Luke 18:24.) Why? Christ knew how much this man cherished his money. He had followed all of the external rules, but he couldn’t seem to keep his internal attitude in check. As a result, Jesus ordered him to sell everything he owned and follow Him. He rejected, but we can be certain that in death, he yielded what he could not in life.
God is always concerned with one’s attitude. Christ’s statement about the rich young ruler was based on that man’s attitude, motive, and goal for his wealth.
How is God’s will expressed in finances?
A proper knowledge of stewardship is essential for accomplishing God’s will in the area of finances. Unfortunately, the concept has become so misunderstood that most people now associate stewardship with Christian fund-raising operations. A steward, as previously said, is someone who oversees the property of another. While we are on this earth, we are only stewards of God’s property, and God can choose to entrust us with as much or as little as He wishes. In no event, however, do we ever claim ownership. When we try to do so, we are relying on either what Satan can provide or what we can do through our own willpower.
God will entrust more and more to us after we embrace our duty as stewards and handle God’s resources according to His instructions. But why would God entrust property to people He knows will hoard it and believe they own it?
God will not compel us to do His will. Proverbs 28:26 is a scripture that directly refers to God’s attitude “He who puts his confidence in his own heart is a fool, but he who walks wisely will be saved.” God is searching the entire world for men and women who have the right attitude toward money and will utilize it according to His instructions rather than their own. Every story about money that Jesus Christ left us reveals a lot about the mindset He wants us to have. The parable of the talents (Matthew 25:14-30, simplified) is full of wisdom:
The master was leaving on a trip, so he summoned three of his servants and told them, “I’m going on a lengthy trip and have given you money to spend on my behalf.” He awarded five gifts to the first, two to the second, and one to the third, each according to their respective abilities. (Note that he didn’t give them all the same thing; he provided them what they needed based on their physical and worldly abilities.)
Upon the master’s departure, the first immediately took the five talents, invested them, and gained five more. The second, who possessed the two abilities, took them out and invested them, earning two more in the process. Knowing that his master was a severe man, the one who had been entrusted with one skill wrapped it in a handkerchief and buried it in the dirt.
The master reappeared later and summoned his three servants. He addressed the first by stating, “How did it go for you?” According to the first, “I’ve done well, Master; I’ve taken your five abilities and combined them with five more.” Then his master said, “You did an excellent job! You were good and trustworthy with the little things I entrusted you with, and you have now become a source of my tremendous joy.” The person who had the two then approached and said, “Master, you gave me two, and with them, I’ve gained two more.” “Says the master,” “Excellent. You, too, are dependable. I’ll give you a lot of responsibilities!”
And the one who had been given the single talent approached the master and said, “I knew you were a tough guy, reaping where you didn’t sow and gathering where you didn’t scatter seed, Master. I was terrified, so I ran away and buried your talent. I’ll give it back to you right here!” His master, on the other hand, scolded him, “You are a thief and a slacker. You knew I’d reap where I hadn’t sown and gather where I hadn’t strewn seed. You should have put my money in the bank where it could have at least earned interest!” He instructed those who were close to him, “Take the talent from the one who made a lousy investment and give it to the person who made five. Because to everyone who has, more will be given to him, and he will have plenty. But even what he has will be taken away from the one who does not have, and he will be driven out into the darkness.”
This fable has a prophetic quality to it. It is found in Matthew 25, a chapter dedicated to Christ’s Second Coming. It reveals a lot of information. Among them are the following:
- God will entrust to us what we can handle, not what we can’t handle.
- God despises our slothfulness and expects us to multiply the assets He has given us, not just maintain them. That multiplication is to be done in accordance with one’s abilities.
God expects individuals who have the financial means to invest, but He also wants a return on their investment. This necessitates financial intelligence, which is another another element to comprehending God’s plan.
How might we seek the Lord’s financial wisdom? God promises that if we pray in His will and believe in it, we will receive it. However, God’s plan and ways do not always align with ours. As a result, when we entrust our finances to God, we must also be open to accept His guidance.
Going our own way and expecting God to save us when we get into trouble is a bad idea. Christians who engage in this behavior on a regular basis have not embraced God’s knowledge as superior to their own.
How God works through our finances
God may frequently clearly and objectively show us that He is God and in control of everything through money. 6:32-33: Matthew 6:32-33: “The Gentiles are eagerly seeking all of these things, and your heavenly Father knows that you require all of them. But seek first His kingdom and righteousness, and everything else will be added to you.” God will use money to enhance our trust if we accept our roles as stewards and turn it over to Him, according to this principle.
Because our lives revolve around the making, spending, saving, and other uses of money, this principle is critical. According to Luke 16:11, “Who will entrust the true riches to you if you have not been faithful in the use of unrighteous mammon?
Many Christians refuse to submit to God’s will because they are terrified to give up their lives and assets. The answer is found in Matthew 7:11: “How much more will your Father in heaven give good gifts to those who ask Him if you, being evil, know how to give good things to your children?” We can see from this Scripture that God takes on the burden of providing the fundamental essentials for everyone who trusts Him.
We forget all too frequently that we revere the universe’s creator. We think of God in human terms and relate to Him in the same way that we relate to other people. It’s critical that we comprehend God’s strength and resources. When God makes promises to us, He does so through His Word. And the Bible contains all of God’s promises to us. As we read it, we realize that God is the rightful owner of everything. He’s a multi-billionaire, a multi-universitarian, and when He claims He can offer something, He means it. In chatting with others, we’ve discovered that God keeps his promises in the Bible.
Then He starts to offer small things at first, because we can only trust Him with small things. But as He provides us small things, our faith in Him grows, and the more faith we have in Him, the more He is able to provide. As a result, God can use money to show us His might “Whoever believes in Him will not be disappointed,” says the Bible, “for there is no distinction between Jew and Greek; for the same Lord is Lord of all, abounding in riches for all who call upon Him” (Romans 10:11-12).
“He who gathered a large amount did not have a plenty, and he who gathered a small amount did not have a scarcity” (2 Corinthians 8:15). God will utilize one Christian’s abundance to meet the needs of another. Later, as mentioned in 2 Corinthians 8:14, He may reverse the relationship: “At this moment, your abundance is a supply for their need, so that their abundance may likewise become a supply for your need, resulting in equality.” It is critical for Christians to accept the notion that we have a surplus of money in our life, and that everything we have has a purpose. God, for example, sent Joseph to Egypt precisely to meet Israel’s needs. If Joseph had denied his stewardship role, God would have easily allocated it to someone else.
There’s probably no speedier way for God to lead our lives than through the richness or scarcity of money. Too frequently, we feel God will steer our life only if we have a lot of money, so we keep looking for ways to get it. God, on the other hand, will guide us down His road just as rapidly if we don’t have enough money. “And let us not lose heart in doing good, for if we do not get weary, we will reap in due time” (Galatians 6:9). We don’t give up just because we’re having trouble. God will eventually offer the guidance we seek, and one of the key ways He reveals His plan is through the provision or withholding of money. A Christian seeking God’s will must first ensure that he has abandoned control of his life, including his wealth, and that he is sincerely seeking God’s guidance.
Christians who hoard money and never plan for their financial future will never find fulfillment in this area. I frequently overhear Christians exclaim, “What can I do to help? “Right now, I barely have enough to meet my necessities.” God can never give back to us if we have never learnt to give. God can’t be in charge as long as we think we’re in charge.
Attitudes of self-control
Let’s look at some guidelines that will clearly indicate when God is not in control; knowing when He is not in charge is just as vital as knowing when He is.
God is not in control if a Christian is worried, frustrated, and upset over money. God has declared that having money without anxiety is His intention for our lives. “For this reason, I say to you, do not be concerned about your life, what you will eat or drink, or about your body, what you will put on.” Isn’t it true that life is more than food and that the body is more than clothing?” (Matthew 6:25, NIV) God promises to provide food, clothing, and shelterthe necessities of lifeif we follow His plan. We can focus on other things if we believe that, and we can use the abilities God has given us to carry out the plan He has for our lives.
God, of course, would never use money to corrupt us. Many Christians, on the other hand, have fallen into Satan’s trap and have been corrupted. They fail to recognize that when they are corrupted, God cannot be in charge. “For the Lord knows the righteous’ paths, but the wicked’s paths will perish” (Psalm 1:6). A Christian whose financial life is marked by greed, ego, deception, or any of the other worldly traps is not an ally of God.
Christians are frequently enslaved by their money ego. In our country, the majority of people cater to the wealthy (Christians included). Read the book of James from beginning to end. It makes the warning not to fawn over the wealthy extremely plain. We are all financially equal in Christ. The things of this world will fade away shortly. We shall lose all of our fortune when we die. And there will be many shocks when we meet again as Christians. Those who will be given the crowns of heaven and given command of God’s cities will not be those who use money to create egos. “And let the rich man rejoice in his humiliation, because he, too, will perish like blossoming grass.” Because the sun rises with a scorching wind and withers the grass, its flower falls off, and the beauty of its appearance is gone, so will the rich man’s ambitions fade away” (James 1:10-11).
The distinction between saving and hoarding is clear. “Lord, I beg only two things from You: first, help me never to lie; second, give me neither riches nor poverty, since in my poverty, I might steal, and with my wealth, I might grow content without You!” wrote the author of Proverbs 30. (See Proverbs 30:8-9 for more information.) The wealthy bear a significant obligation to understand why God gave them money and to refrain from hoarding. A Christian who hoards money is not following God’s will. “For he sees that even smart persons perish; the foolish and the insane depart as well, leaving their wealth to others.” Their inner thought is that their homes will last forever, and that their dwelling sites would be passed down through generations; they have named their territories after themselves” (Psalm 49:10-11). This is a crucial spiritual lesson.
Those who keep significant sums of money in reserve to bequeath to their offspring or for “security” are delusory. It’s impossible. It is critical for Christians to comprehend and believe this. “I counsel you to buy from Me gold polished by fire, that you may become wealthy, and white robes, that you may dress yourself, and that the shame of your nakedness may not be shown, and eye salve to anoint your eyes, that you may see,” says Scripture (Revelation 3:18).
Hoarding has the potential to become a trap. Rather of abandoning a hoarding plan, it is feasible to observe those in need and ignore them. Unfortunately, those who are enslaved by hoarding can justify their actions by using justifications that contradict God’s Word.
It is critical that we begin to adopt lives that are consistent with our Christian faith. That implies something other than opulence. God does not want us to be poor, and we have realized that poverty has nothing spiritual in it. There is no sin in having a lot of money. God, on the other hand, does not want a Christian to dwell in worldly opulence while His ministry requires funds and other Christians go hungry and unclothed. So, while Christians can live well and we do in this society it is critical that our dedication be distinguished from that of the nonbeliever.
What kind of commitment are you looking for? It must be one for you personally, prompted by the Holy Spirit’s conviction. “Is there a difference between my lifestyle and that of the nonbelievers?” you must ask yourself. If not, you must seek God’s guidance. “But godliness, when accompanied by contentment, is a means of great gain,” says First Timothy 6:6-8. We cannot take anything out of the world because we bring nothing into it. And if we have food and a place to sleep, we will be satisfied.”
Application
Christians cannot experience the fullness of the Holy Spirit until they relinquish control of their lives to Christ, and they cannot experience financial independence and peace until they relinquish management of their finances to God and embrace their role as stewards. They must also listen to Him through Scripture and prayer and put what He says into practice. A Christian who refuses to yield to the Lord and never seeks God’s financial guidance will never receive an answer.
What does the Bible have to say about money?
Ecclesiastes 5:13-14 I have seen a severe evil beneath the sun: money hoarded to the detriment of its owners, or wealth lost through misfortune, leaving nothing for their offspring to inherit.
A man loses everything on a terrible investment in this narrative from Ecclesiastes, and has nothing to pass to his son. This is bad for the son, but it might also be disastrous for the father in today’s environment. That’s because his disastrous business decision might wipe out not only his son’s inheritance, but also his own retirement savings.
People currently live longer than they have in the past. According to the National Institute on Aging, in many affluent countries, the average life expectancy is more than 80 years, and about 12% of the population is over 85 years old. Over the next few decades, this number is likely to skyrocket.
People are living longer lives, which means they are spending more time in retirement. Retirement funds for today’s 65-year-old seniors may easily last 20 years or perhaps longer. So, if you gamble with your income in your 60s, you’re risking not only your children’s inheritance, but also the money you’ll need to live on for the next 10, 20, or even 30 years. If you lose a significant portion of your assets, you may have to postpone retirement since you don’t have enough money to sustain yourself.
If you want to ensure that you have enough money to retire on and, ideally, something to leave to your children when you die you should lower your investment risk as you get older. As you get closer to retirement, you should gradually shift your money away from high-risk investments like stocks and toward lower-risk investments like bonds and annuities, which can provide a modest, regular income.
You can still invest part of your money in the stock market – in fact, you’ll definitely need to if you want to live well in retirement for decades. However, you should keep at least a portion of your savings safe from market danger so that you may always call on it for income.
Make a Financial Plan
Proverbs 21:5 As definitely as haste leads to poverty, the plans of the diligent lead to prosperity.
This final rule from Proverbs encapsulates all of the others. Budgeting, retirement planning, and emergency savings are all examples of being diligent by planning ahead.
- Make a list of your objectives. When you know what you’re saving for, it’s lot easier to persuade yourself to save and invest. Your financial goals may include paying off student loans, purchasing your first house, funding your children’s college education, or investing for retirement, depending on where you are in life. Make a list of your personal goals and revisit them periodically to see whether they’ve changed.
- Examine the situation. After that, determine your existing financial condition. You can do this on your own or with the help of an accountant or financial expert. Determine your current net worth, as well as how much you earn, how much you spend, and how much you’re generating on your investments.
- Make a list of the steps you’ll need to take. All you have to do now is find out how to get from point A to point B now that you know both where you are and where you want to go. For example, let’s say your objective is to buy a house in five years and you estimate a down payment of $55,000. If you already have $15,000 in savings, you’ll need to put aside another $40,000 over the next five years, or $8,000 a year. If you’re only saving $5,000 per year, you’ll need to earn more money, spend less money, or earn more on your assets – or all three to reach your target in five years. Alternatively, you may adjust your objective to buying a less expensive starter house with a $40,000 down payment – a target you can achieve without making any changes.
It’s easy to float through life without a financial plan, earning and spending money without giving any attention to the future. Writing a financial plan and reviewing it every few months to see if you’re on track ensures that you know what you want out of life and are on the right track to get it.
In a downturn, who benefits?
Question from the audience: Identify and explain economic variables that may be positively affected by the economic slowdown.
A recession is a time in which the economy grows at a negative rate. It’s a time of rising unemployment, lower salaries, and increased government debt. It usually results in financial costs.
- Companies that provide low-cost entertainment. Bookmakers and publicans are thought to do well during a recession because individuals want to ‘drink their sorrows away’ with little bets and becoming intoxicated. (However, research suggest that life expectancy increases during recessions, contradicting this old wives tale.) Demand for online-streaming and online entertainment is projected to increase during the 2020 Coronavirus recession.
- Companies that are suffering with bankruptcies and income loss. Pawnbrokers and companies that sell pay day loans, for example people in need of money turn to loan sharks.
- Companies that sell substandard goods. (items whose demand increases as income decreases) e.g. value goods, second-hand retailers, etc. Some businesses, such as supermarkets, will be unaffected by the recession. People will reduce their spending on luxuries, but not on food.
- Longer-term efficiency gains Some economists argue that a recession can help the economy become more productive in the long run. A recession is a shock, and inefficient businesses may go out of business, but it also allows for the emergence of new businesses. It’s what Joseph Schumpeter dubbed “creative destruction” the idea that when some enterprises fail, new inventive businesses can emerge and develop.
- It’s worth noting that in a downturn, solid, efficient businesses can be put out of business due to cash difficulties and a temporary decline in revenue. It is not true that all businesses that close down are inefficient. Furthermore, the loss of enterprises entails the loss of experience and knowledge.
- Falling asset values can make purchasing a home more affordable. For first-time purchasers, this is a good option. It has the potential to aid in the reduction of wealth disparities.
- It is possible that one’s life expectancy will increase. According to studies from the Great Depression, life expectancy increased in areas where unemployment increased. This may seem counterintuitive, but the idea is that unemployed people will spend less money on alcohol and drugs, resulting in improved health. They may do fewer car trips and hence have a lower risk of being involved in fatal car accidents. NPR
The rate of inflation tends to reduce during a recession. Because unemployment rises, wage inflation is moderated. Firms also respond to decreased demand by lowering prices.
Those on fixed incomes or who have cash savings may profit from the decrease in inflation. It may also aid in the reduction of long-term inflationary pressures. For example, the 1980/81 recession helped to bring inflation down from 1970s highs.
After the Lawson boom and double-digit inflation, the 1991 Recession struck.
Efficiency increase?
It has been suggested that a recession encourages businesses to become more efficient or go out of business. A recession can hasten the ‘creative destruction’ process. Where inefficient businesses fail, efficient businesses thrive.
Covid Recession 2020
The Covid-19 epidemic was to blame for the terrible recession of 2020. Some industries were particularly heavily damaged by the recession (leisure, travel, tourism, bingo halls). However, several businesses benefited greatly from the Covid-recession. We shifted to online delivery when consumers stopped going to the high street and shopping malls. Online behemoths like Amazon saw a big boost in sales. For example, Amazon’s market capitalisation increased by $570 billion in the first seven months of 2020, owing to strong sales growth (Forbes).
Profitability hasn’t kept pace with Amazon’s surge in sales. Because necessities like toilet paper have a low profit margin, profit growth has been restrained. Amazon has taken the uncommon step of reducing demand at times. They also experienced additional costs as a result of Covid, such as paying for overtime and dealing with Covid outbreaks in their warehouses. However, due to increased demand for online streaming, Amazon saw fast development in its cloud computing networks. These are the more profitable areas of the business.
Apple, Google, and Facebook all had significant revenue and profit growth during an era when companies with a strong online presence benefited.
The current recession is unique in that there are more huge winners and losers than ever before. It all depends on how the virus’s dynamics effect the firm as well as aggregate demand.
In a downturn, where should I place my money?
Federal bond funds, municipal bond funds, taxable corporate funds, money market funds, dividend funds, utilities mutual funds, large-cap funds, and hedge funds are among the options to examine.
In a downturn, what sells?
- While some industries are more vulnerable to economic fluctuations, others tend to do well during downturns.
- However, no organization or industry is immune to a recession or economic downturn.
- During the COVID-19 epidemic, the consumer goods and alcoholic beverage sectors functioned admirably.
- During recessions and other calamities, such as a pandemic, consumer basics such as toothpaste, soap, and shampoo have consistent demand.
- Because their fundamental products are cheaper, discount businesses do exceptionally well during recessions.
What is the name of the economics Bible?
Adam Smith was an economist and philosopher who produced The Wealth of Nations, which is regarded the “bible of capitalism” and describes the first political economy system.