With the condition of today’s economy, everyone is feeling the crunch. The prices of gas, groceries, household bills, and the cost-of-living seem to keep going up without any extra cash flow coming in. This is making it harder and harder to keep our heads above water.
The same can be said for the economic impact on the business world. Companies must raise the prices of their product or services to meet the rising cost of production. Supply and demand!
To make ends meet, they are also finding newer ways to cut the overhead costs. The problem with this decrease in company expenditure is that fewer people are employed. Meaning, these people are spending less money in the markets. Buying only what is needed, and not spending on the “extras”.
With less money circulating in the markets there is no boost in the economy. It’s a never ending circle that is just beginning to get a foothold to recovery. Small businesses, of course, are hit harder than the larger companies who can afford to cut back to regain losses. Too much cut back and the small business owner are out of operation.