15% less Inflation

Discussion in 'Economics' started by bearice, May 16, 2011.

  1. Today a saleswoman came to my house and I purchased 5 kg washing powder and I received 12% discount for each kg I purchased. I think this company does not advertise its products on TV and other medias. So the 12% money saved on advertisement benefits buyers thus reducing inflation by 12%. I agree that TV commercials/advertisements cause Inflation. Also I received some free products for each kg washing powder I purchased. So I think the total discount I received is 15%. I will purchase 12 kg when this saleswoman comes again.

    Few people watch TV advertisements because they change channels when Ads appear. I switch off the TV when Ads appear. So TV Advertisements is one of the biggest waste of money. TV advertisements are expensive and in some cases they are highly expensive when the TV program has high viewership. Channel companies can charge viewers/customers certain subcription money per month and get rid of TV advertisements. Also it would be non-stop TV program only. No looking at stupid ads people face.

    Consumers ultimately pay for TV commercials/advertisements because the advertisement cost is added to final selling price of the product. Example, if the cost of the product is $5 and the advertisement cost is $1 the the product is sold for $6. So ultimately consumer pay $1 additonal charge.

    Example, if Coca Cola advertisement expenses is $100 million per year then Coca Cola should distribute free samples worth $100 million to its potential customers instead of buying TV advertisments and Giant outdoor advertisements worth $100 million. This way customers will get to taste Coca cola instead of seeing some human face drinking Cola in Ads and customers having no idea what the taste is like. When people receive free products they feel happy, privilaged and royal. Even rich people like free products.

    Inflation is an invisible tax that is used to spend more than gov't takes in. Inflation of fiat money is easy when there are no hard assets backing the money. Inflation robs people of Purchasing Power (same as a tax).Inflation transfers productivity and assets of workers to those who sit in chairs and create the fiat money (or loan it out). Inflation is the biggest fraud/scam because people think the economy is growing whereas the fact is only the price is increasing.

    Example: What if inflation were 4%, with the same growth? Then nominal GDP would be $30 trillion! What a roaring economy, except that gas would $8 a gallon (assuming current levels of supply and demand). In essence, you would need $2 to buy what $1 buys today. Don’t even ask about health-care costs. If your pay/income did not double, you would be in much worse shape in terms of lifestyle. That is the insidious nature of inflation. Everybody and all world business are directly affected by useless inflation.

    My main point is that TV commercial/advertisements are expensive and many are highly expensive so the final product price increases by 10% to 20% resulting in inflation. Nobody watches TV advertisements because people change channels when ads appear. So TV advertisements are one of the biggest waste of money.

    Some corporations make sooooo much money that advertising is only a Tax Write Off. Some of these products, at the SALE price level, have a GP of 100% up to 400%. This, again, is the SALE price GP. Not the RETAIL price GP which is more. Think of it this way, they buy an item for $25.00 with a retail of $200.00 and then put a sale price of $100.00. Wow, that's 50% OFF...what a bargain!

    Add some propaganda and yes, people will buy crap they certainly do not need. I get upset thinking about all the crap that comes to market with virtually no use what-so-ever and these ads telling me I NEED it.I will be a better man if I wear a certain after-shave...I will get more women if I drink a certain beer...I am not a real man if I don't own a certain model car...I mean WTF. I bought TIVO and have avoided the propaganda machine for many years and I have not looked back since.

    Some 7 years back I was member of paid to click advertisement programs where members would receive paid advertisement links daily. When members clicked on the link they would earn 2 cent or 5 cent and sometimes $1 per ad link they clicked. Here members were paid to read advertisement so members were happy to read advertisement whereas in TV advertisement viewers earn nothing to see ads. Paid to click advertisements will takeover TV advertisements in future.

    Today the world is in serious trouble because of money. Money runs financial world economy. People change channels when advertisement appear but ultimately you (consumer) pay for the advertisements. Today world economy is in serious trouble because of wasteful expenditure. Think about it.

    Channel companies should earn money directly from customers by monthly subcription. This way people have channels they watch and not 100+ channels. No need for advertisements.

    People who have internet connection will earn $1 to $5 per ad link clicked when paid to click internet programs takeover TV advertisements. Internet will be a good source of income in future. If you read 20 to 50 internet advertisements you will earn average $100 per day or $3000 per month.
  2. India petrol price increased some 10% some 2 days back. Infact there has been 50% increase since May 2009 in India petrol price ever since UPA government won majority in India.

    India biggest problem is coalition government where 10 to 20 political parties form government. If anybody withdraws support India government will fall/change.

    Indian high inflation is uncontrollable and there are scams involving government people so India government will fall/change in coming days.

    Congress party has been ruling India since year 1948. It is high time that some other political party is given an oporturtunity to change India if India wants to survive in the world.
  3. Somebody said to me that India economy runs on diesel fuel because trucks in India use diesel. Many cars and jeeps are diesel powered. I think 50% Auto-rickshaws are compressed natural gas powered (not sure).

    What is the major fuel source for world automobiles/vehicles (China and other countries)? I think rich and developed countries run on petrol.

    If India and other countries start using petrol as major fuel source, just imagine the price of Crude oil.

    I think Indian oil companies are pampered and they do not produce oil as per massive requirements of their country. So India's dependence on international fuel further increases the price of Crude oil (not sure). Indian oil companies should be pressurized to increase production/supply or face actions.