We have learned that economics is a living network of financial impact. Everything factors into how healthy ones economy is such as the employment and unemployment we learned about last week. As mentioned previously, unemployment can be looked at negatively in that oneself withdraw themselves from earning income and producing goods. Once an individual ceases work that may put them into a state of saving money since there is no income. This Segway’s into the paradox of thrift. An economy exists because there is some level of employment, production of goods, sale of goods and purchasing. This creates a revolving cycle of money much like a circulatory system. If society chooses to spend as whole that invigorates the economy by injecting mass amounts of money by purchasing goods. This blossoms companies and organizations, presents well paying jobs and again can cycle. On the contrary, if the society as a whole decides to not spend but rather save, this will have an entirely different outcome. If everyone chooses to save and not invest their finances then in essence we are keeping money out of the cycle of economy thus bleeding out the system which has a ripple effect. Within todays economy I agree that withholding finances from the circulation can greatly impact the economy. We as a society will be susceptible to another depression if we do not properly balance the input and output of resources. One could argue that in response to no spending company’s could opt to reduce prices to entice purchasing but that becomes an assumption and or a gamble. There is no guarantee that will produce a positive or desired outcome.
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