(via ay-drian)
I love the statement of this message…
However, speaking from what I have learnt in Economics, both Macro and Micro, a generation that doesn’t spend wouldn’t be beneficial. If the majority of people stopped being materialistic and refused to buy goods (such as clothes, cellphones, books, computer, and so on), this would only cause a deeper recession. This is due to the fact that if no one was consuming these goods, it would cause a chain reaction.
Fewer consumption of goods ——> Lesser demand for that good ——> Therefore supply must be reduced to meet the lower demand ——> Employees must be laid off or paid lesser, as they are not needed ——> Higher number of unemployment ——> lesser money for individuals ——> People will most likely want to save their money ——> Therefore, fewer consumption ——> And the cycle continues ——-> …..
So what is the resolution? Spend your money. To keep the moral of the picture above, I would say spend your money wisely on things that are of great value to you: family, hobbies, loved ones and investments for the future.
And now, back to studying for finals!
