To fully understand how to produce a healthy economy, you have to understand every aspect of it. That is why I want to examine several areas of the economy now.
1. The stock market and business debt
- One interesting part about the stock market and business debt is how it can cause a lot more money to be in circulation than normally would be. Theoretically, this could boost the economy.
2. Government debt
- Again, this could boost the economy through increased money in circulation.
3. Consumer debt
- Again, this could boost the economy through increased money in circulation.
4. Housing Prices
- These are a major factor, because everyone has to pay for housing. Theoretically, if any prices were raised in relation to housing, even just for the cost of heaters and air conditioning, then it could cause inflation in all other areas of the economy as well. What is more interesting is how a cycle could develop involving increasing prices and increasing cost of housing.
5. Worker Welfare
- There is a lot of evidence connecting this to economic welfare. When the economy is struggling, their welfare actually decreases with it.
6. A system of lending
- Most countries currently are depending on systems of lending to provide enough money in circulation to support the population. This means that most countries are depending on debt inflated amounts of cash flow, more cash than is actually in circulation. Meanwhile, more in circulation would still cause everyone to have an amount super conducive to living at a higher quality of life.
7. Need for money in areas that aren’t market oriented
- When was the last time you went to the store and bought a pack of restoring the health of local underwater ecosystems, and a gallon of planting trees to reduce global warming? It is pretty rare. The system relies on non profit groups to do many things. Although successful, many people often find they cannot do things they wanted to benefit society, due to lack of financial resources.
8. Confusion and false beliefs
- There can be much confusion and false beliefs due to the failure to solve problems of homelessness for people in need.
9. Required payments
- Car insurance, taxes and estimated taxes, property taxes, health insurance, home insurance... all of these increase the required cost of living, which can be a cyclical cause of inflation just like the cost of housing. When people find that they can’t afford these things, they find no options to help them.
9.5 Quality of Life
- Although all of the debt can help boost the economy, it can be a burden to quality of life in addition to many things mentioned above. All of this can even lead to people who cannot pay for a normal life.
10. Summary
- It is clear that we need to have more money in circulation, or everyone could be more poor than the Great Depression era people, simply because of the increase in population. There is a limit on the amount that can be lent. Everyone needs to be given that money, as they increase it, to alleviate poverty and prevent false beliefs and confusion. It is no longer possible to support oneself from a minimum wage job, even though it is possible and easy in Australia. Why? It is simply the population.
11. The Good News
- Any problem with the economy in this area is actually quite gradual. Business debt and government debt can play a huge role in helping to alleviate the stress of it. Consumer debt can as well. However, confusion, false beliefs, and any problems can easily be avoided with a small change.
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