G7 ministers intend to accelerate the growth of the world economy, by combining several mechanisms such as structural reforms, monetary and fiscal policies. http://tribune.com.pk/story/1107763/g7-warns-global-economic-outlook/ It seems like the global economy has stabilized and there is no cause for anxiety. Agree or not? What do you think?
G7 is a centralized tax consumer .. confiscating from one group at the benefit of another amounting to a net negative result.. growth and G7 are going to be at odds with each other by their inherent nature.... it's very paradoxical ...
Same script: Everyone continues to print money; tries to devalue their currencies vs others; tries to export their problem away... The problem IMHO, people in developed countries are not spending because we realized except for daily essentials there are very few things we really need: How many more pairs of jeans do I need? Another new car? Another new TV? Another new iPhone????? The other parts of the world are too poor to buy anything to impact world economy. Economist and Government big shots will tell me I am dead wrong but as a non economist, non expert, I see this as a simple consumption issue. I for one need a compelling reason to start buying lots of unwanted, unnecessary stuffs again.
My point is that they can't do anything to help anyone without expensing someone else .. you don't need to be a big shot to realize how inflation ruins the little guy in real terms
they can' imagine an economy not based on consumption. to them growth and consumption are one and the same
It is very interesting to me as a little guy: For the economist and big government, consumption is good, saving is bad, so they very much encourage all of us to buy stuffs. As an individual, saving is good and consumption is bad since if I don't save for a rainy day, when bad things happen, I am cooked. And when I am too old and cannot find work and have no saving, I am cooked. Something just does not add up. Another puzzle for me: why do economic growth have to tie to consumer consumption? Fundamentally, once people's basic needs are met, why can't growth come from investment in a cleaner environment, building better roads, even building a stronger arm forces? Employing people to do those is not that different from employing people to manufacture more goods that I don't really need? Well, maybe that's why they make big bucks and I am just a stock/options trader having fun. Peace.
Consumption isn't always good and saving isn't always bad, even to economists and governments, as well as individuals. Economic growth doesn't have to be based on consumption. It can be based on investment, like it's been the case in China for a few decades. It's always about the right balance. Too much of any one thing may be right for a period, but isn't likely to be a sustainable model.