You're jumping steps. There is no demand for the carrots because Sylvie and Kofi don't have jobs. Sure, Robert can grow them, but who's going to have the money to buy them? There is no lack of money among the Aya monied. There is a relative lack of demand among the rest who are not. Follow the sequence. Sorry, CO, you may be good at a lot of things, but economics is not your forte. EDIT: You beat me to it, FT.
Yes, there's no demand for his product. You think it's because mom amd pop are broke. I'm telling you there aren't any carrots to buy. The pretend economy has been undressed. There's nothing there. You can't save what doesn't exist.
If Kofi got hungry enough, he'd offer to pick carrots in exchange to eat a few. Hand him gov't money, he still is a bum.
thats silly. who wouldnt want fresh carrots if they could afford them? robert invested money to plant the crop so he has an incentive to harvest the crop. the problem is that in the time since robert planted the crop the market signaled that it did not want his product. it costs more money to harvest the produce,ie employees. even though he will lose money if he does not harvest he will at least not waste any more money that it would cost to harvest ship and market the product so he leaves it in the ground.
robert doesnt want the carrots picked because he cant sell them and once they are out of the ground robert has to store them costing him even more money. geeze is it that hard to grasp?
bad story considering that most of the american economy is services and information. the problem isn't that there are crops in the ground, the problem is that there are structural changes in the economy itself Obama is trying to create artificial demand again in housing by pressuring banks to lower lending standards. How did that work out last time?
its just an example. it doesnt matter what the producrt or servise is the economic principles are the same. no demand no need for employees.
OK, think of it this way. Take the dot.com bubble. What were people investing in? Was there a actual company? No. There was an idea for a company, and a web page. The curtain got pulled back revealing nothing...bubble bursts and all the money goes bye-bye. Housing bubble, same thing. Why were all those house's built? Actual demand? No, it was paper pushing paper. None of it was real. Again, curtain pulled back reveals nothing, money gone again. How many times can we keep pretending there's a product when all there is is paper? We produce nothing of substance anymore. It's all made somewhere else. Our economy pushes paper and nothing else. That can only last so long.
robert has calculated that it will cost him less to let them rot in the ground than to spend additional money harvesting, shipping and marketing them since he cant sell them because his customers dont have the money to buy them. is it really that hard to understand? dont they teach anything like this in school anymore?