Tuesday, December 2, 2008

Spending for the Economy could be very tricky

So I read that a US employee of Walmart died due to a shopping stampede. I could just imagine the frenzy of shoppers trying to cross out their Christmas gift lists and shopping lists for the holidays. Also the fact that they are taking advantage of the retail stores that are feeling the consumer spending crunch, which led them to offer too-good-to-be-true discounts encouraging people to circulate their money. But does it really help?

Does buying slashed up electronics and value saving edible products really, gigantically help the economy? It is a very tricky question. Some say they do, some say to a minimum. But in theory, money really needs to circulate. If people don’t buy products, shops suffer, suppliers suffer, companies suffer and employees suffer. Keep repeating that tune around and soon no one will want to buy anything or avail of specific services because they’re laid off and there’s no more money to circulate. That’s why government or financial institutions encourage people to invest and consume to keep the economy afloat. But at the end of the day, it’s everyone’s tricky question.

It’s true that we can save the economy. It might take time and bold efforts, but it could be saved. But I can’t see myself trying to dispose the small crumple of resources that I still have just to make sure that economy stays afloat. Ironically, when the shit is too big to handle, the concern of people becomes more immediately critical and not global. Sure we hear layoff news everyday, in ever part of the globe. Sure we see banks close, once powerful companies suffer and cutbacks done in every retail stores and establishments, but by the end of the day our main concern is putting food on the table and making our lives and the lives of our loved one secure and comfortable while we can. What do humans naturally do? It’s a no-brainer. WE hold on to our money.

I cannot say that I’m bold enough to spend so much these days when there’s a crisis looming. IN life, it doesn’t make any sense. I can’t afford investing so much of my resources when I still need to get a large chunk from it to pay my bills, higher costs of goods and services. I may think myself lucky but not careless enough to take for granted the present job that I have. Who knows maybe next year I won’t have my job anymore (worst very worst case, ding dong). I save as much as I can for the rainy day/s. Seriously, before you sleep, would you really think about bailing out companies by spending your money in the morning for a brand new car, stocks and the new plasma TV? No one can force you to spend. To prove resilience, one should know the trick of smart spending. Naturally, you think about your current status first and your family because smart people would know how to avoid this harsh question. Would someone try to bail you out when you have nothing?

Spending is truly needed, but it takes art, courage and disposable income to make this work.

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