I read that inflation should be around 2-2.5% in a perfect economy. I feel the world needs to readdress this issue. Deflation is supposidly bad as buyers will always wait for the cost of a product to fall as deflation has its effect. This is only relevant in a greed economy and not in an economy of necessity. Okay, you want that flat screen TV, due to deflation it is £15 cheaper in one month's time. Fine, this is relevant, but do you really need that TV?
Same case scenario, you need to feed your family, they are hungry right now so regardless of the price of food in one month's time you have to buy it now.
My point is that due to the difficulties in the modern world if we create a market of necessity rather than waste then inflation is irrelvant. If we only buy what we need instead of what we don't need then surely the world will survive for longer.
So is it time we realligned our thinking and impose economic policies for future survival rather than try to survive on the destructive policies of the past?
umm well the difference between what you need and what you want is enormous, do you need chocolate milkshake or could you just have water for example.
if we dont buy what we want the economy itself will suffer, if you went to new look for example and wanted a new jacket but you didnt NEED it, you wouldnt buy it right,
lets say 100 people did the same and more and more people were buying less now, new look would have to reduce staff and maybe close because not enough people were shopping, we are in a double dip recession now and we are encouraged to shop more now, so i think the issue of necessity went a long time ago.
Most ridiculous thing I've read. I think you need to retake Economics 101, buddy (@OP).
Consumption is not bad, consumption is good. Steady consumption results in money constantly flowing - thus ensuring people have jobs -> are able to buy things themselves (necessities primarily). If people were to suddenly stop buying things they "wanted" then people would be out of work in no-time. Is it communist ideals or just pure stupidity that caused you to post something as unbelievably ridiculous as this?
Ah, but is it? This is not a communist opinion, but a realistic one. We live in a world of blind presumption. We presume everything will be there forever just as it has always been. It is on that basis that I make such observations. I feel the world is in a desperate need of commercial reallignment. Open up and see. Even many in the more traditionally strong economic regions cannot afford the essentials of fuel and food. Mortgage rates are at an all time low and yet many suffer financially and even more would should rates rise.
I don't want to see the commercial world collapse any more than you do, but if we continue in the wasteful presumptive way we consume raw materials at present there will not be any economy for the generations ahead. Forget the economic dogma you have been programmed to believe is the only way and modernise the world. Don't expect the annual increment of the past, rather everyone work together in the understanding that you can keep more people in work if everyone has a fairer share. At present too few consume too much and too much profit is earned by too few.
Open your eyes and look around you. This is not a double dip rescession, it is a new way of life. I am not in any way a communist, but I do believe if we don't wake up to new strategies we will be kidding ourselves about any form of permanent recovery. Think outside the economic box.
There's no "realism" to what you are saying, in fact if policy makers around the world were to listen to and implement what you have to say, a massive global recession would arise.
Possibly the oldest communist myth (lie) of them all is the one about all resources' limitations. They were worried about the population growth 100 years ago: how would they possibly feed every human being? They were even more worried 50 years ago. The truth is that the standard of living has increased for pretty much all countries since then (except for maybe North Korea and other communist regimes, where legislators believe in the stuff that you are trying to convey here). That is mainly thanks to technology improvements (we can harvest more etc), which in turn is thanks to globalisation, which is thanks to consumption, which is thanks to an increase in global wealth and standard of living (and the cycle repeats). What you are saying is wrong and you have no basis to support it (other than your mentioned "I make such observations").
"Even many in the more traditionally strong economic regions cannot afford the essentials of fuel and food." The second part of this quote is very wrong, just search the web and you will see that people around the world have tons more food and water at their disposal than they did 10, 20, 50, 100 and 1000 years ago. The first part of the quote, however, is a different story. Oil is a non-renewable natural resource and will, eventually, run out. Oil is something that we need to preserve.
You may not see yourself as a communist, however your views certainly are. The idea about annual deflation being better than inflation is especially ludicrous. Money flowing is a good thing, not a bad thing. In order to make it easy for you: Money (consumption) --> jobs --> money. Less money --> less jobs --> less money.
You sound positively McCarthianistic! At no time did I state `running out of food` but rather commented on its affordability. It is also good to know you accept we are running out of oil! However I notice you chose not to mention gas and the other associated commodities that the shortage of oil effects. The cost of most raw materials has soared due to their increasing scarcity, plus many are becoming increasingly difficult to get out of the ground. Yet you still seem to act like an economic ostrich, pretending all is OK.
You say we need to preserve oil but fail to grasp the knock on effect this will have. Modern mankind is incredibly oil dependent, it is estimated the average household would need the equivalent of 130 slaves to replace the work oil does. Perhaps this is what you regard as long term labour potential? Please feel free to continue your attitude of denial, just remember we have a responsibility to the future generations to get it right. Pretending all is fine and good is, to me, ignoring all the signs that are plain to see.
I live in a free economy and am happy to do so, so clear the communist thread that runs through your replies. Rather than attempt to shoot down my opinions without consideration I suggest, as I do, you spend some time researching with an open mind. You may then realise that mine is an opinion of deep thought and consideration and not one of archaic comformism.