Economics for Dummiez

20 Feb, 2014 at 09:23 | Posted in Economics | 1 Comment

 

1 Comment

  1. There are two issues with this video might try to accommodate: 1). the surplus or savings that the corporate or private sector is holding is partly a regulatory requirement, just like banks that must keep a percentage of its deposits in case of a crisis. So, the excess savings that corporations are holding could be spent. If these funds are spent too quickly thru investments, then the ratcheting up of production in particular markets could undersell current prices in those markets and drive many other companies/firms out of business. So, the corporate sector must be prevented from dumping its savings all at once which would lead to an unstable outcome. 2). the meaning of resources should be clarified: there are raw resources, facilities for processing raw resources into products, and resources for accessing products and using them. One dilemma to address is the creation of a market by destroying current markets, like war profiteers or disaster profiteers like to do. This strategy should be regulated. Infrastructure, facilities, and markets should not be destroyed merely for the sake of recreating them, unless this is definitively planned.


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