09 Jan 2021 07:29

Joined:	10/12/2016
Level:	Platinum
Points:	64765

Points:	5

If everyone stops being extravagant

People earn money and then enjoy also and it is a trend seen all over the globe. There are so many avenues for spending like going on a trip, partying, fun and frolic events, celebrating festivals, observing grand functions, ceremonies, buying clothes, buying gadgets, going to saloons and spas, long drives, foreign trips, replacing old designed things with modern designs etc. These expenditures are what makes an economy vibrant and manufacturing process gets a boost because of the good demand in the market.

Let us just assume that people all of a sudden become money conscious and start thinking that they should not waste money in luxuries and should try to live in the minimum requirement ways and reduce their expenses considerably. I am talking of especially those people who are well off and can afford to spend money. If such a thing happens on a large scale what would happen to the economy and manufacturing segment and employment situation in the world or specifically to our country. Members may like to comment.

#720124

09 Jan 2021 07:43

Joined:	13/08/2010
Level:	Gold
Points:	12992

Points:	3

The economy which is already in the doldrums will take a plunge downwards. Public spending is more important for the economy to remain strong. The economy even before the pandemic took a nose dive due to the inefficiency of the Government. It was further shattered by the hand of God. The GST collections showed a good jump only because of the public spending. Anyone who wants the economy to pick up will never think of the scenario depicted by the author.

" Be Good and Do Good "

#720133

09 Jan 2021 10:35

Joined:	27/09/2019
Level:	Gold
Points:	6445

Points:	4

It's a hypothetical question of the author If people stop wasting money, I think it will affect the demand of all commodities as the graph of demand of luxury items will go down and companies which manufacture or produce luxurious items will suffer a big loss in business but the maximum amount will be deposited in banks and that will be a great advantage for the government. Wasting money is not a wise move. Saving the maximum amount makes people rich. Showing richness by buying expensive items is not praiseworthy. But those who are much affluent of money may not stop spending their money.

#720186

09 Jan 2021 22:07

Joined:	12/10/2009
Level:	Platinum
Points:	227382

Points:	4

Good post from the author and it is the fact that for the past 10 months the spending abilities of many has been drastically cut and most of us are now living with much caution and precaution and we are not spending for unwanted things and postponing them. Even the festivities were gone with thin celebrations thereby signalling that the future would be a habituated less spend thrift. Most of the households who were generous in spending for style statements in the past and now living meagerly and with future contingencies plan. So the covid has taught us the big lesson has to how to be in normal living with minimal comforts

K Mohan @ Moga
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease

#720277

10 Jan 2021 20:52

Joined:	20/01/2017
Level:	Diamond
Points:	19544

Points:	3

It does not look like a practical proposition but we can assume it time being to find out what will be the repercussion of such an unprecedented action by the common masses. This will be too dreadful to imagine. Manufacturing and service sector will come to a halt as people will not buy the things and will try to do their work themselves. It would be disastrous for the economy of any country.

Thoughts exchanged is knowledge gained.

#720315

11 Jan 2021 10:54

Joined:	02/06/2009
Level:	Platinum
Points:	93610

Points:	4

If money is not getting circulated and if it is stagnant at one place, it will lose its value and there will not be chances for wealth creation. If the money lying in one place is getting distributed, all will try to spend and money circulation will increase. Manufacturing and other service sectors also will be shining like anything.
If the rich and people who can afford stops spending the whole system will get collapsed. There are people who wanted to have money and they will not get it. People who have money will not spend and the money will be stagnant with them. The economy of the country go into difficulties.

drrao
always confident

#720345

11 Jan 2021 20:26

Joined:	25/11/2014
Level:	Diamond
Points:	22224

Points:	5

For a healthy economy, money should move in the market for the different activities and once it becomes standstill, this would reflect the deterioration of economy. While considering the health of our economy as witnessed in the last year, our purchasing power dropped due to various factiors the most important being the lay off the employees from the different organisations, less opportunities to go outside due to pandemic situation resulting in less spending, escalation of unemployment problem etc. The combined effect of such factors led to erosion of our economy. It is because of this phase, people became rather cautious in terms of spending. Still their fearness has not disappeared completely in relation to security of their jobs. They have now become careful with regard to their expenditure and if such a situation continues for long, it would not be a healthy sign in a country like ours.

#720350

11 Jan 2021 21:23

Joined:	24/09/2018
Level:	Gold
Points:	11305

Points:	2

Money should not get blocked in the lockers , it should be spent or kept in the bank to make economy good. That's where the concept of demonetization came. It's good for the economy that people spend money of the trips, recreation or in other services as that way people earn and economy gets strong.

Sanjeev

" The two most important days in your life are the day when you are born and the day you find out why? "
– Mark Twain

#720351

11 Jan 2021 21:24

Joined:	10/07/2018
Level:	Diamond
Points:	22056

Points:	5

The economy will suffer and there cannot be any doubt in it which all the other members have already said. I don't think this situation will ever come because people earn money to spend. It depends on person to person how much to save and how much to spend. I may think a particular expenditure a waste but the person who is spending for that particular thing may feel it is essential for her/him. The market is moving because there are demands as well as supplies. If there is less or no demand the supply will also come down and there will be less monetary exchange. We all know what happened during lockdown since most of the industries were either closed or their outputs were very low throughout the world. The economy suffered a lot for this but there was no other option left. I do agree that many people are very conscious about spending during this situation but equally, everybody wishes things to be back to normal condition as early as possible. Another thing is those who earn a lot or save a lot what will be the outcome if they do not spend from it? Money is saved for the future with an intention to maintain a decent lifestyle at an age when there will be no earning. So, you are earning basically to spend but how much one is spending depends on the individual.

Sankalan

"Life is easier when you enjoy what you do"

If everyone stops being extravagant

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