if we forego current consumption, how can we have future consumption? if we don't buy things, where will the producer get the money to do research, and improve their products, which mean better products for us in the future? current consumption is necessary in order to have better future consumption. but excessive consumption is totally unacceptable....
.....but who cares?! it's my money! let's go shopping people! hahaha!
Naah, I disagree with Din. Our economy is small compared to the US, UK and other European superpowers. How did their economy grow in the first place? They invest more in capital to produce more of the goods for future consumption.
Our country starts off poor. Therefore, it is easier to expand our economy further by saving more so that the savings that we have would be allocated for more capital goods, which will be used to produce even more consumption goods. This little investment in capital would make our economy grow a lot more. This is what is known as the catch-up effect.
US and UK are already rich countries. Thus, it is more important for them to have their citizens to spend more money in their consumption. As they have already reached a point in time where they have too much capital which produces too little output. That's diminishing returns. Rather than save, their citizens should spend more instead of saving.
In our case, we should save more than we spend. Understand? It's not like I condemn consumption altogether. If we stop consumption, how are other people are going to make a living when they work in businesses? Of course, spend. But spend wisely. Spend too much now and it will be your own funeral for the future.
Comments
hati2 shoping..
bwk duit sikit2 je.. peragut ramai hehhe..
peace!
:)
"BUY LESS, SAVE MORE! So that our economy can grow!" (Catch-up effect)
"Forego current consumption for more future consumption."
ahahaha.
ex shopaholic,
wah, u sound repented hhahaha.
"duit parents itu mudah..belanjalah sesuka hatinya.."
gile pelik ayat ni.
.....but who cares?! it's my money! let's go shopping people! hahaha!
Our country starts off poor. Therefore, it is easier to expand our economy further by saving more so that the savings that we have would be allocated for more capital goods, which will be used to produce even more consumption goods. This little investment in capital would make our economy grow a lot more. This is what is known as the catch-up effect.
US and UK are already rich countries. Thus, it is more important for them to have their citizens to spend more money in their consumption. As they have already reached a point in time where they have too much capital which produces too little output. That's diminishing returns. Rather than save, their citizens should spend more instead of saving.
In our case, we should save more than we spend. Understand? It's not like I condemn consumption altogether. If we stop consumption, how are other people are going to make a living when they work in businesses? Of course, spend. But spend wisely. Spend too much now and it will be your own funeral for the future.