Economics - December 2006

2006-12-16 21:33:32 · 4 answers · asked by JiShin 1

This is long, but please go through them all. And yes, there's a question for you at the end answerable only after you're clear of what this long essay is about.

Everything is about demand and supply. In order for a company to have sustainable growth, it must either increase production (thus increase sales, hopefully) or reduce costs (including human capital by substituting it with the latest technologies) or both.

Imagine if all the companies around the world succeeded in doing both, then it will be super high productivity and mass unemployment (or underemployment). When this happens, how in the world will the market be able to pay for all the excessive products/services when most are either unemployed or underemployed and thus can't afford much?

Governments will of course introduce new projects to stimulate growth and employment but I believe these new projects will still be futile because the modern consumerism is self-created (not natural) and has the tendency to break down. Next, banks can create economic spending by giving out easy credits that make a lot of people bankrupt, which is also equally unsustainable.

Progress is there to be seen but it's only at certain places, not every places. When a country or a company grows, it grows at the expense of others. Introducing more money into the market merely increase inflation that leaves a lot of people at disadvantaged. More loans merely create more debt that leads to recession.

In the end, when it's all about growth, I really don't think capitalism is sustainable because one's gain is another's loss. Of course everyone can win, but that'll be illusory by splitting the value of $1 to $0.5 by increasing things from $1 to $2, for example, to create the illusion of growth. The current capitalism is about substituting resources with money. But this is wrong. While money can't be depleted through constant credit creation, a majority of the depleted natural resource can never be replaced.

Capitalism is where the society exist to serve the economy, not the economy to serve the society. We see a lot of advertisements promoting new demands (harmful and unnatural demands) to stimulate sales and growth. In the end, the richer one group gets, the poorer the other group. Equal wealth distribution is critical. This is to eliminate rich-poor gap between people. But if everyone prefer only to uphold the status quo, motivated by selfishness and greed, then sooner or later the economy will come crashing down without revival. By that time, a lot of resources have gone to waste. My idea is this - the world can only survive (in the near future) by abolishing the economy, making it serve the society instead of the other way around, eliminating unequal wealth distribution (making everyone equally as rich/poor as another), and reforming our current system of living without working (by replacing every human capital in production with technologies). Other than all these, life will never get better. People in turn must change themselves to be cooperative, not greedy, and work not because they have to but because they want to contribute.

Now, I want to hear your opinion.

2006-12-16 20:35:50 · 5 answers · asked by Anonymous

is it true that the manufacturing of automobiles is the
major industry in the country?

2006-12-16 20:12:27 · 4 answers · asked by hu 1

Rich countries like USA and Britain also borrow money from other countries/organisations. Why do they do that? Why don't they instead print all the money that they want? Please answer in detail.

2006-12-16 19:14:32 · 7 answers · asked by arun m 1

economic inflation

2006-12-16 19:12:07 · 2 answers · asked by sunnie 1

2006-12-16 19:02:45 · 5 answers · asked by ramakrishna_ing 1

2006-12-16 18:17:47 · 9 answers · asked by mauzzam007 1

How come?

2006-12-16 18:04:07 · 4 answers · asked by Anonymous

Does anybody konw what stores like to price their products ending at $0.99? Why is everything $9.99, $99.99, or something other amount with $0.99 in it?

Any other rational explanation besides it being a sales gimmick?

2006-12-16 16:58:07 · 2 answers · asked by The Prince 6

2006-12-16 16:46:18 · 11 answers · asked by Anonymous

2006-12-16 16:33:14 · 6 answers · asked by downtowngurlwriter 3

It is part of world trade organization
this is not a south America company
The country has a temperate climate
Population of this country is about 1/3 that of canada’s
in size, it is a bit smaller than the state of Alabama
Independence was gained before Canada became a country
The country has a capitalistic economy
This country has a parliamentary republic government
The country is a member of the European union

2006-12-16 13:56:11 · 3 answers · asked by Candy 1

It's glaringly obvious that we in the developed world are eating far more than our fair share of the world's resources.

So I was wondering ... just what would be a "fair share"? Is there any way of finding out for sure, rather than just opinions?

2006-12-16 13:44:39 · 9 answers · asked by Girl Machine 7

when the economoy has completely flexible exchange rates, why the sum of the current account and the capital account is zero?
i dont understand why Balance of Payment(BP)=0 is related to Exchange rate?
thanks

2006-12-16 12:28:19 · 1 answers · asked by nicolesf 1

2006-12-16 12:14:48 · 11 answers · asked by Anonymous

2006-12-16 09:19:28 · 3 answers · asked by maximilion in the house 1

does anybody know the reason why there was suddenly a deflation in japan in the 1990s (still continuing today) and why their economic 'boom' suddenly stopped?

oh..and what are bad loans? what did the banks do with those bad loans?

2006-12-16 08:41:38 · 3 answers · asked by zorro 2

2006-12-16 07:14:31 · 7 answers · asked by myself 2

Will U.S. social security be there for YOU when you retire, or not? Seems everyone expects it to fail, but no one will let politicians change anything about it. So I'm confused. Tell me if I'm wrong.

2006-12-16 04:21:31 · 4 answers · asked by KevinStud99 6

If so will it can be solved

2006-12-16 03:51:13 · 3 answers · asked by SG 4

2006-12-16 03:14:27 · 7 answers · asked by rose p 1

2006-12-16 02:32:05 · 2 answers · asked by Anonymous

I'm curious to know when the period of capitalism will end and what will come afterwards?

2006-12-16 01:48:14 · 10 answers · asked by Jellyfish 3

Is it on the roadside? Is it so minute, diluted over such a vast space we can't detect it with our eyes?

2006-12-16 01:36:29 · 5 answers · asked by Nathan Emory 1

I'm talking in terms of

1) the easiest

2) most work opportunities

3) salary $$$

Thanks...

2006-12-16 01:35:07 · 7 answers · asked by roaring_leo 2

2006-12-16 01:32:50 · 7 answers · asked by Anonymous

2006-12-15 23:03:50 · 12 answers · asked by sunny 1

what are the market forces like Demand and supply in telecom industry in india for Airtel?

2006-12-15 22:46:07 · 2 answers · asked by katari s 1

What steps can I personally do to help improve the nation's economy?

2006-12-15 20:51:25 · 8 answers · asked by Anonymous

34

2006-12-15 18:57:09 · 5 answers · asked by bartley_cat 1