Page 3: Boom
A boom period is one where economic growth takes place. During this period consumer spending, business investment and GDP increase at a growing pace. The economy grows and develops a higher capacity, employment increases and businesses often have to pay higher wages to attract skilled employees to meet the increasing demand for their goods and services.
There is, however, a danger of overheating within the economy during a boom. This is where businesses, faced with increased demand and an inability to increase output in the short term, take advantage of the excess demand by increasing prices and profits. This eventually results in higher inflation as prices of goods and services increase. The pace of change cannot be met by an ever-decreasing supply of available resources as the economy approaches full employment.
Budgeting and saving
Although a boom period might reduce the demand for There for You’s grants, as employment levels are higher, the services and advice offered will be crucial for many members. Unexpected events can happen to anybody. Even when unemployment is low, many people still look for work or may be on low incomes requiring assistance. Financial planning advice offered by the charity is as relevant in this part of the business cycle as in others as members need to plan to protect their future. For example, members need help with budgeting and saving surplus income.
Fundraising is a vital part of There for You’s business strategy. This helps to support the future of the charity. Fundraising is vital during all stages of the business cycle to create revenue that supports UNISON members. One way the charity does this is through its Octopus lottery. This provides a regular source of income to support the charity’s operating costs. Revenue streams from the lottery tend to be higher in the boom period as there is less financial pressure on members’ incomes.