The Joseon Dynasty wrote:Renegade Island wrote:
economise - spend sparingly, avoid the waste of.
How is the economy doing this?
By taking scarce resources and allocating them? That's the answer in a nutshell, really.
We can sit here and argue 'till the cows come home about how the market is inefficiently allocating resources, and many economists spend their lives doing so. But the fact of the matter is that the combination of government intervention (for social motives) and market allocations (for economic motives) has produced a reasonably efficient system; one which has not yet been rivalled.
As I said, aggregate, long-term growth rates for most, if not all, developed economies over the last one hundred years show a steady, monotonic increase in income per capita and factor productivity. That's economising.
And the cause of this recession, rather, was a deviation from an efficient allocation of resources. That isn't a failing of the system, but rather of the economic actors therein.
So how do you explain cyclical consumption, planned obsolescence, the advertising and marketing industries, etc?




*pokerface* *hopes he cant sense my unknowing*