In what ways do financial crises impact the lives of ordinary people?

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Ashley Kannan eNotes educator| Certified Educator

Financial crises reveal so many questions or issues for the ordinary person.  The most pressing of which would be the rise in gas and food prices.  Financial crises usually involve the devaluing of currency or of sectors of the economy.  For example, when the housing market in the United States contracted in 2008, the so- called bursting of the housing bubble, so many people had money and assets tied into their properties.  When their properties devalued, their entire net worth went down with it.  On such a large scale, this caused economic ripples that are still being felt.  Events which normally can be seen as isolated conditions in a financial crisis can thus be experienced in a daily reminder to ordinary people.  For example, financial instability causes food prices and gas prices to rise.  The economic condition of inflation can result in the singular currency's purchasing power being less, and thus causing ordinary people to feel the impact of global economic realities.

A question that can arise from this would be how global financial market trends make their relevance in the lives of ordinary people?  Another question to result from this is how the average consumer has been effected by such global financial trends over a specific period of time.  In seeking to address the issue of consumer empowerment, an interesting question would be to ponder what steps can the ordinary person take to not be so profoundly impacted or even victimized by global financial fluctuations or trends.  These questions seek to make the faceless element of financial forecasting real and distinct in the lives of billions of people.

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