Post
Topic
Board Economics
Re: The trend of prices is still upward, any hope for downward?
by
Silberman
on 08/07/2021, 22:19:24 UTC
The governments are doing something to try to help the economy recover, the problem is that they always do the same thing, they printed a lot of money to stimulate the economy but this raised the price of everything just at the moment when a lot of people lost their job or saw their income reduced, meaning that they cannot afford a great deal of products they could before, reducing the sales of those businesses which in return means that everyone needs even more help, forcing the government to print more money, so to me while the healthcare crisis could be overcome during this year I do not believe the same will be true for the economic crisis that is coming.
things like this seem to be a dilemma, where when people lose their jobs and have no income, the government comes and provides assistance, so that it can move the economy back, on the other hand the government prints more money, which I think this will be in the future burden the community because of inflation that continues to occur. Hopefully in the future the government can take wise steps to overcome this
That would be the best case scenario but it is really doubtful that it is going to happen, politicians more than anything are there because they want to get and keep the power they have, this means that when a part of the population is suffering they are going to take measures that will help them on the short term so they seem to be doing their job, but they are sacrificing the long term well being of their population, as eventually they lose control of the inflation and they need to keep printing money to keep things going and the economic activity goes down as no one wants to open a business under those economic conditions.