Originally posted by homo_borg
No, it will not. You see, when WWII stimulated your economy, the enemy didn't have nukes.
Now what is the "Economy"?
It is simply the amount of "Goods/Products" that exist, and the movement they make from 1 person to another.
In a "Good" economy, products move among people quickly, and commonly.
In a "Bad" economy, products do not move around so quickly. Things stagnate.
The reason everyone thinks the economy of today is so poor, is simply due to a few misconceptions that I will lay out here. This is just a simple
breakdown of this, by all means look /research into it deeper on your own as there will be MANY factors that I cannot possibly mention in my short
post. So u must go research this stuff to learn more about it.
# 1 Inflation
Due to the fact they keep printing more money, without a legitimate resource backing that new money, the money becomes worth less than it was before
you printed that new $$$.
In reverse, stopping printing $$$ , and instead burning it, would cause Deflation - making each individual unit of currency$$ to be worth More.
Now Inflation is Related to the economy, but it is not a direct indicator of the amount of goods being traded. So looking at inflation alone will give
you a "false reading" of that economy.
#2 Stock Market /Commodities "Speculation"
The stock market and Commodities markets are created so that companys can collect investments from individual investors (like you and me).
When we put our money into buying stocks, we are essentially investing in that corporation, supplying them "Capital" (money$$) to use in their
buisness projects. depending on several factors in a corporation, they can issue a certain amount of stock. There are many factors that can occur in
relation to these stocks, but generally the higher priced a stock is, the more promising people think its future as a buisness will be. when a
companies stock collapses to 1cent or lower, the company essentially runs out of Capital investment (money to play with) , and they actually end up
giving more money back to the investors who pulled out already, than they had to begin with . Thus the company can easily go "bankrupt" and become
"liquidated" because their stock becomes worthless. The only way to save that stock is to buy alot of it, and as you buy more shares, each piece of
stock increases in value (because you obviously value it since you are buying it).
The reason I want to point out that the stock market can be misleading in regaurds to the true health of the Economy is because, the stock market is
purely based on speculation on the part of investors.
You invest in a company if you "Feel it will do good" and you pull your investments out of a company because you "Feel it will do bad" in the
future respectively. This May or May Not reflect the actual situation with the goods on the store counter. Since it revolves around speculation and
rumors so much. There are exceptions, lets look at Walmart for example. They are selling tons of goods everyday, and move things back and forth
constantly. People have alot of faith in walmart, and so they keep investing in its stocks. If walmart runs into legal /financial problems, Even if
its overhyped and less significant than what is originally thought, this can cause panic in the shareholders thus causing sell outs of stock, and the
stock can drop.
Despite the fact walmart had the same amount of goods on the shelf today as it did yesterday, its stock value can change purely depending on random
speculative forces by the investors.
These are 2 major issues we must take into account, as they are PART of the "Economic Health" - but they are not the basis by which the Economy is
So in reality there are several layers to the meaning of the word "economy" and many factors that we must take into account to determine its "true
Point of all of this being, that if you look at things objectively; you will realize that the Physical economy of today is actually better than it was
There are more goods on more shelves at more stores than there was in years past, and there are more workers with more jobs with more cars etc etc
So in fact the economy of the USA, Canada, EU, Africa, ME, Asia etc is in fact better today than it was in the past.
Economic crashes like the "Great Depression" were actually due to several reasons, but 2 of the biggest causes were #1 the dust bowl, which
destroyed most of the nations farmland - a true physical economic disaster
and #2 a stockmarket crash based on panic that the future markets would do poorly (pure emotional miscalculations).
What i am saying is that the economy of 2008 is probably the biggest strongest economy in the history of earth. For almost all nations (bar a few
What can cause our economy to collapse? Agian, several factors.
Agricultural disasters, like famine/floods/desertification/freezing etc, can initiate a economic crisis. These things have not really destroyed our
agriculture buisness right now- but it is a factor we must keep our eye on, since it is crucially important to the "health of our economy".
A non-renewable resource being used up, can also destroy a portion or portions of that economy , as in converse, the discovery of new resources will
increase the potential of that economy.
In todays global economy, a huge war would probably actually hurt the economy, as factorys in certain nations would be destroyed, trade lanes
disrupted, crops possibly burnt, consumers killed in the conflict, etc. These things will definatly Hurt the economic situation by lessening the
amount of trade taking place.
Now , there are also other ways we can look at the economic situation, and depending on your perspective, it would make sense to consider the economy
"good or bad" in respect to your individual perspective.
For example if I am a producer, and I sell a particular resource, like Lettuce. And I am the only person selling the lettuce, I can set my own price
(and of course I will ask a high price for it because i want profits so i can buy nice things). This is a good economy for me as a producer, because
the consumer is forced to pay my price that i demand of him. This is a poor economy for the consumer, as his choice is limited and im screwing him.
Now, lets say alot of new farmers decide to sell Lettuce too, because they see im profiting so much off it. Now there is 100's of producers selling
lettuce, each one undercutting the other producers sell price (in hopes the next person to buy lettuce will buy his lettuce instead of mine since his
is a bit cheaper than my original price).
This is a bad economy for the producer, because the overflow of producers (competition) causes the price of lettuce to drop. But on the other hand,
this is a good economy for the consumers who buy and eat that lettuce, because now , thru competition, they can buy more lettuce for cheaper.
Ill go ahead and stop here, but I hope you understand what im trying to say, as the economy is a deeply complex system, and there are many
perspectives you can view it from , each having a different view on "good or bad".
There is more than 1 meaning to the word "economy" and there is more than one way to view that economys "health".It is all relative.
But the bottom line tho, is that when goods do not move around, the overall economic situation stagnates and recedes. And when there is an abundance
of goods being traded back and forth, the economy generally thrives and is in "good shape".
Dont just take my word for it tho, as I have only givin the most vague and generalized description of the factors that affect our economy.
I hope you enjoyed this conversation as much as I have, as it is a very important and interesting subject.
To end, I will say this, that I believe the actual real economic state of the world today is far better than it has been in past decades. I think that
the media Hypes up the fear- around the economy for their own agenda and actually is lying saying the economy is suffering. Because in reality the
economy is doing ok.
[edit on 18-8-2008 by muzzleflash]