Results 11 to 14 of 14
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March 6th, 2008 12:45 PM #11
Let me remind everyone that our GDP is composed of 60% consumer consumption. Now consumer consumption is never going to be wealth creation in any sense to those who consume. It increases the wealth of the seller (which are the big corporations owned by the rich) thats why the middle and poor class are transferring their wealth to the rich as they buy new cellphones, new TV's, new clothes, new etc.... What we need is capital creation. People should save (instead of spending like a drunken sailor without a care for tomorrow) so they have the capital to invest and reap from the GDP increase.
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Tsikot Member Rank 4
- Join Date
- Jan 2007
- Posts
- 2,326
March 7th, 2008 07:55 PM #13
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March 8th, 2008 01:33 PM #14
Agree here bro.,- consumer spending is one of the main factors for keeping our economy alive (and afloat)... Kaya nga one of the schools of economics endorses more consumer spending (Reaganomics should be one of these variants) so that the market remains liquid even in tight economic situations....
But then again, there should be a balance between how much you spend and how much you save.... The underlying guidance is that you have to live within your means....
As for "saving your money and later investing it to reap from the GDP increase", I am sure a lot of our countrymen, including myself, will not have the capacity to invest because we can only save so much....
5505:home:
Choice I would have made as well.:nod:
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