Neoliberalism and mismanagement of the government for many years have wreaked havoc on a prosperous economy, he writes. Kyle Mervin.
IN THE 1930’s, a young man telephoned John Maynard Keynes came up with an economic theory called “thrift disturbance”. Now I’m going to say a little bit here, but this theory shows that the desire to save money and get rich financially can lead to a reduction in both savings and more wealth.
What drives the distraction is that money only comes from drinking. The more you save, the less money you spend; the less you use, the less business it becomes; business income decreases, employment decreases; fewer jobs, fewer customers and so on. Continuous economic losses.
Over time, spending cuts affect the economy so much that savings savings are reduced and even though more money is saved, reducing the amount of money saved so that all the savings are small, hence the problem.
Globally, the concept applies to government funding. That’s why austerity doesn’t work.
The irony is that if there was a thief who managed to squander all the savings in the country to help spend the money, all the wealth and businesses in it would benefit economically. The wonder of stealing.
The removal of the JobKeeper and JobSeeker schemes in the recent outbreak is a major part of the recent economic downturn. It has undermined the confidence of the business, but most of all it has undermined consumer confidence and, in particular, has affected the spending power of beneficiaries.
So why is the Government not only restoring the original plots?
The answer is twofold. First, no one wants to burden future generations with debt and there is no question that the original plan was expensive. Again, it has had a profound effect on employment, or especially the ability of businesses to attract employees.
It is difficult to convince people to waste one-third of their waking life working to enrich someone, if they are not doing well. It has been a long-standing and unexplained idea, especially among disinterested people – although I hope they would refuse – that unemployment must be very difficult for any kind of work to be better.
It is difficult to convince people with a paid carrot that looks like a good stick and if the carrot cannot be sweetened with a high price due to market forces, then it all comes down to the stick.
The biggest omission is evidence. It’s up to us, and even the C’s words you can use around your children can be a trigger, a trigger, let them know. If these issues are not addressed, it could jeopardize economic growth for years to come.
Unless there is a war.
Long before the epidemic hit our shores, the suspension of payments was repeatedly criticized for our economic failure to return after the Global Financial Crisis (GFC photos), which leads to a call from the governor of the Reserve Bank to raise the fees. Keep in mind that interest rates have been significantly reduced in many developed countries since the GFC’s promotion, but the cabinet is empty and economic growth over the past decade has been weak.
Successive L-NP governments have failed to promote wage growth and the testimony of the former Minister of Finance, Mathias Corman‘s selection of withhold payment as the financial success of his stewardship, he does not believe in the growth of salaries as a boost of wealth. And given the importance of competing with other resources in the world’s open markets, their location is ugly, but understandable.
It is difficult to compete if you have to pay Australian salaries to colleagues, while international competitors do not. The high cost of labor is a challenge for our businesses and in particular has led to the decline of Australian manufacturing companies and the dramatic growth in places like China.
Debt is declining again
The burden of future generations and the debt that has been incurred to bring about the various economic storms is not something we should take lightly, but as I said, there are distractions to play and economic incentives. But is it really necessary to have a mortgage in order to earn a living?
Quantitative reduction, as it is called, is another way. A system in which the state-funded national government provides bonds purchased by the country’s savings bank, rather than sold in international markets. Then the government spends the money to support its various programs, but since the country is owned by the bankers there is no reason to repay. A form of deficit without credit.
This type of government spending is often criticized because the government publishes money, which scares people who are riding in wheelbarrows full of money to buy bread. But the reality is that wealth does not care where the money comes from. Reducing the decline in terms of inflation targets in terms of definition hinders the economic downturn regardless of the source.
Quantitative reduction should be welcomed, not intimidated. Decrease without credit.
It is a market
Unrestricted and unconstitutional markets have a huge impact on all of us, so I see market respect that is often praised by law enforcement as a lesser, more sophisticated and less democratic form of government. Democracy is about people because of the people, not the market.
It is true that wealth is created and I would like the responsible people to be the people we elect in government. But I am wrong.
There are a few financial problems in the open market that are not explored.
Supermarkets: Companies against consumers
There are clear examples of how a failure to appreciate the growing population as a consumer can lead to more community problems than the share of Australian supermarkets. Of course, supermarkets seem to be looking ASIC sanctions due to unacceptable behavior such as business value, but their type of business provides a foothold in the workplace and income-generating strategies for women and men who sell money.
Aldi, on the other hand, not so much. We all love low prices, high speeds and cheap ski clothes, but all the best for getting your kids a job. The benefits of low-cost local grocery stores are offset by job losses. The less work opportunities, the more consumers in the area and the new culture begins.
What is good for Aldi is not really important to the community.
Towards the end of the last century, the combination of corporate purchases changed the way markets and wealth created more problems for stakeholders, with disastrous consequences for almost everyone.
What’s worse is that, the financial incentives created by the decline of companies in the short to medium term create opportunities to compete with other players in the market, who are now forced to compete or lose market share. The most effective competition in the market is price reduction.
In the face of it all, low prices for goods and services are a challenge for Joe Public. Individually, lower prices for goods and services increase your purchasing power. The money you earned yesterday earns you so much more. You would be foolish to pay higher prices for something that lower prices are available, right?
But consider this. If the market has 100,000 units in it, at ten cents per pop, it’s a market for a million dollars. When you reduce the price to five cents per share, it is a market of half a million. You can’t save the market for a million and a half million dollars. You cannot continue to work and you cannot save profits.
Now use that great resource.
Without additional markets, lower prices would be worse. You heard it here before.
Open markets and market forces are not economically stable. The competition has the losers and the winners by its nature and no one likes to lose.
Spoilers: Cryptocurrencies shed light on the realities of money, MMT (shut up but no cigarettes) is a new example of a new generation that is constantly evolving.
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