Thursday, October 09, 2008

Capitalism. Must buy!

The current credit crisis have got me thinking about how crazy our current financial systems are:

Here are a lay man's observations about how it works.

Why do we have to work? So that we can buy things

Why do we buy things? So that we feel happier

Why don't we stop buying things when we are happy? Because we are never happy / satisfied with what we have got and always strive to get the new "better" thing.

As a result we have to work more and more so that we have the money to buy the things we want.

This is the premise on which our economy is based.

So what happens if we can't buy things? First we will not be happy because we cannot buy things. Secondly people who make things that we normally buy won't be able to sell so they will be out of a job.

If people lose their jobs they will have less disposable income so they will not be able to buy things... and so the cycle continues.

So the whole economy will collapse if people stop buying. scary don't you think?

1 comment:

Nirbho said...

Good post.

I guess if we had a Needs-based economy, as opposed to a Wants-based economy, then yes, there would be fewer jobs, but there would also be more openings in the jobs that do exist, as people only work as much as is needed, allowing others to fill the role after a short while.

A Needs-based economy won't come about as greed is part of human nature and there will always be people who want to collate wealth, therefore they will run businesses which manufacture need-less rubbish.

However, I guess what we're talking about here isn't the accumulation of wealth, but the accumulation of products that we don't need.

I do think that it's possible for the majority of people (that's all it will take) to stop purchasing products in the belief that some happiness will follow on, in order to go back to a Needs-based economy.

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