5 Rules of Recovery of Science of Economic Crisis

[achola]

My keen observations on the fundamental theories and practices of economics suggest the following 5 rules can greatly help economies to recover faster:

(1)Instalment Based Selling Of Products : If industrial sector of an economy keeps on selling their products it implicitly implies that it will be manufacturing product also and if this sector continue to manufacture , it will definitely keep on contributing to an economy. What industrial sector faces as a big problem to them is the loss of revenues because of reduced volume of sell. And this reduced volume of sales is realised because at the time of recession customer are unable to pay the unfriendly prices of a product though they have desire to buy a product . This tool of customer friendly installment plan can greatly fight this problem of reduced sell volume and help the industrial sector to fight the problem of reduced sell. The benefits of this will go to everybody : the investors, the employees , the governments and as a whole to the entire nation.

(2) Moderation of Governments Expenditure : As prices of goods and services attain a lower level due to fall in their demands , the purchasing capacity of the government employees proportionally becomes higher. To adjust this biased benefits going to them it is advisable to cut their salaries and perks according to a formulae to be worked out by a group of economists. It will help everybody in an economy , as the overall effect which this tool will bring is it will make available some degree of cash availability to government treasury which governments can rationally use to help to fine tune their economy. This will ensure a greater benefits as its beneficiary will be everybody in an economy

Apart from this, the governments need to cut its defence expenditure, as this expenditure sucks a large amount of cash from an economy.

(3) Issuing Of Public Bonds of Different Maturity Period:

Governments should make use of this tool as a tool of instilling confidence among depositors and investors who do not want to put their money in financial institutions like banks largely because the fear psychosis ruling their minds. This step will yield to governments a large sum of money . The bonds should be attractive in terms of its return so that it can invite maximum possible amount of cash available with citizen . Governments can then lend this money to financial institutions which are enormously required to fight the economic crises. A healthy financial institution is an index of economic development. This step will definitely help to correct to a greater degree the financial problem of finance institutions in a nation and ultimately benefit every citizen of a nation.

(4)Sorting out of worst affected business units and their subsidisation: governments are required to help those business units whose role in the concerned economy is crucial for development and stability. The waiving of various taxes and subsidisation of some inputs can help the more affected business unit to continue their business rather than deciding closure. This will shortly help investors, and employees and in the long term the governments when these units recover from the problem.

(5) Encouragement to a collective entrepreneurships, rather, a single entrepreneurship in a business venture:

A policy of economic governance which prefers to encourage and support a collective business effort will enormously change the quantum of business progress leading to a faster recovery. In a situation when an individual entrepreneur feels unable to start a business venture on its own because of lack of of capital , the collective effort will pave a way to undertake such business venture as this will sort out the problem of capital needed to start a business venture. A government can also provide economic help to such collective effort if they seek governments cooperation. This tool of economics will definitely benefit a large number of entrepreneurs in an environment of capital-deficit economy.

These rules are nothing new they are already operational in one part of the world or in the other but their degrees of application is not sufficient to bring a significant result . What the time suggests right now is it is right time to apply these rules more comprehensibly. So i was thinking of forex trading reviews, what do you think about it or any other business?

[ricarpe]

(1)Instalment Based Selling Of Products : If industrial sector of an economy keeps on selling their products it implicitly implies that it will be manufacturing product also and if this sector continue to manufacture , it will definitely keep on contributing to an economy. What industrial sector faces as a big problem to them is the loss of revenues because of reduced volume of sell. And this reduced volume of sales is realised because at the time of recession customer are unable to pay the unfriendly prices of a product though they have desire to buy a product . This tool of customer friendly installment plan can greatly fight this problem of reduced sell volume and help the industrial sector to fight the problem of reduced sell. The benefits of this will go to everybody : the investors, the employees , the governments and as a whole to the entire nation.

So, to encourage economic growth you want people to spend more money they don’t have? We already have this. It is called “credit”, and it’s part of the problem in the US, where the average citizen spends $1.25 for every $1.00 they earn. (I’m looking up the citation on that little statistic). Easy access to money does not help the economy, it just creates more of a problem.

If the price of a good or service is too high for people to afford its purchase, then they save in order to purchase it later, or they look for a substitute if one is available. Increasing credit is a malinvestment. It sends a false signal to the market that demand is higher than it really is which would lead to an increase in the proces of those goods and services that you are proposing to make more easily available.

(2) Moderation of Governments Expenditure : As prices of goods and services attain a lower level due to fall in their demands , the purchasing capacity of the government employees proportionally becomes higher. To adjust this biased benefits going to them it is advisable to cut their salaries and perks according to a formulae to be worked out by a group of economists. It will help everybody in an economy , as the overall effect which this tool will bring is it will make available some degree of cash availability to government treasury which governments can rationally use to help to fine tune their economy. This will ensure a greater benefits as its beneficiary will be everybody in an economy

Apart from this, the governments need to cut its defence expenditure, as this expenditure sucks a large amount of cash from an economy.

A government worker–while that phrase is arguably an oxymoron–is no different than any other worker. Granted their wages are earned through government expenditures and are on the taxpayers’ dime. But you do not seem to have a problem with government workers. You seem to be more concerned with equality. First it was equal access to goods through credit. Now it is equality of purchasing power.

If the prices of goods and/or services, more people will be able to afford them, not less. As I stated in response to your statement #1, if people shift their preference for the purchase of a good due to its costs that is a signal to the supplier of that good or service that his/her prices are too high.

(3) Issuing Of Public Bonds of Different Maturity Period:

Governments should make use of this tool as a tool of instilling confidence among depositors and investors who do not want to put their money in financial institutions like banks largely because the fear psychosis ruling their minds. This step will yield to governments a large sum of money . The bonds should be attractive in terms of its return so that it can invite maximum possible amount of cash available with citizen . Governments can then lend this money to financial institutions which are enormously required to fight the economic crises. A healthy financial institution is an index of economic development. This step will definitely help to correct to a greater degree the financial problem of finance institutions in a nation and ultimately benefit every citizen of a nation.

Again, this is already done. The US Department of the Treasury and the Federal Reserve Bank have this operation well in hand. If you read the news, you can see how good of a job they are doing, too.

(4)Sorting out of worst affected business units and their subsidisation: governments are required to help those business units whose role in the concerned economy is crucial for development and stability. The waiving of various taxes and subsidisation of some inputs can help the more affected business unit to continue their business rather than deciding closure. This will shortly help investors, and employees and in the long term the governments when these units recover from the problem.

So, by confusing market signals and creating/incentivizing malinvestment, the government will aid the economy? Please see my response to your statement #4.

(5) Encouragement to a collective entrepreneurships, rather, a single entrepreneurship in a business venture:

A policy of economic governance which prefers to encourage and support a collective business effort will enormously change the quantum of business progress leading to a faster recovery. In a situation when an individual entrepreneur feels unable to start a business venture on its own because of lack of of capital , the collective effort will pave a way to undertake such business venture as this will sort out the problem of capital needed to start a business venture. A government can also provide economic help to such collective effort if they seek governments cooperation. This tool of economics will definitely benefit a large number of entrepreneurs in an environment of capital-deficit economy.

And we come to the crux of your statment. As you built up the whole egalitarian, central planning theme I waited for this. Communal ownership of the business. Just like you think that a “group of economists”–‘experts’ in your mind, no doubt–can create formulas for wages and benefits, you believe that a group of workers can better run a business than an entrepreneur. While businesses today are headed by partnerships, those ‘partners’ are entrepreneurs who risk their personal assets (capital) by starting and maintaining a business to provide a good or service. If you want to see a good example of a business that exhibits the characteristics of communal ownership look no further than the US automotive industry. Communal ownership has done them wonders, especially recently.

These rules are nothing new they are already operational in one part of the world or in the other but their degrees of application is not sufficient to bring a significant result . What the time suggests right now is it is right time to apply these rules more comprehensibly. So i was thinking of forex trading reviews, what do you think about it or any other business?

Yes, communism is already in operation in one part of the world or another. Does not work well, though.

Oh, and thanks for the link to the isshy website. No, I did not go there. I am not in the habit of helping build up the site-visited count of unwanted, trolling advertisers.