During the current recession, we have seen the circular effect of loss. Loss in income, loss in spending, loss in profits. A manufacturer has to close the business down because people are not buying the product they produce. Employee’s lose their jobs, thus their income, which prevents them from being to able to purchase items other than the necessities of life. Unemployment takes several weeks to receive once it’s been approved, by the time the individual receives it, they may be a month behind in bills. The unemployment benefit check is less than the normal income so they can’t afford to pay the late fees on their bills. All in all, from closing a business to less available income to spend, the circle continues.
