please.... lower priceare not bad for the economy as it allows you to spend more on other stuff
please.... lower priceare not bad for the economy as it allows you to spend more on other stuff
No, lower prices aren’t bad in and of themselves. But, and it’s a big one, if you want your population to be able to buy the stuff at those lower prices they too have to be able to earn money.
And that’s what I have seen over my lifetime, businesses cutting back labor because it costs too much and sending the jobs and production overseas. In that way it’s much like a ponzi scheme. The first ones in and out make out great the ones who got in late ending up losing their money and paying for the ones who were there first.
And then we have those who use the Government, both state and federal to subsidize those who can’t work, those who can but can’t find a job, etc. Ok, fine, until the Government runs out of money too. Which is where we are at now.
So what is the solution? I’m sure there is one but to achieve it would require that Capitol, (AKA Business), Labor and Government all agree that to survive in a Capitalist Economy, all need to recognize a few absolute truths. Business needs to make a profit to survive and expand as necessary, Labor needs a living wage that allows them to be able to purchase the goods and services the Businesses provide. Government need to stick to it’s core requirements of defending the country, etc. To do that it needs some tax money to pay for the labor and materials required to do the job.
All of those needs and desires need to be balanced out for an Economy to thrive.
But will I ever see it... No. Why? Because each of these groups is short-sighted and refuses to see the big picture and where they fit into it.
Business has been taught by the Academics to look only at the Bottom line and the Three Month P&L, and not to look years down the road.
Labor, Hmmph, I want it, I want it now and I want it all, screw everybody else seems to be the attitude prevalent among the Labor Unions.
And Government? No need to go there again, but I will. In order to be elected and re-elected the Politicians will promise anything and everything and then steal from Peter to pay Paul and vice versa.