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Edited by Niti998 at 25-12-2023 11:29 AM
Economic Ph.D. Hang has observed that stagflation is becoming more severe now!
It seems like many people have noticed that doing business is tougher this year. This is due to a series of chain reactions:
1.After enduring three years of the pandemic, people have realized the importance of having savings in crucial times. However, instead of stimulating consumption, people have been saving more money in their bank accounts. This increase in bank deposits leads to banks having to pay more interest. To address this, banks have lowered interest rates, encouraging people to withdraw their money for spending, investing in stocks, or other financial endeavors.
2.With people saving more and not spending, overall consumption has decreased. This trend has made it difficult for various industries to do business this year. Due to the lack of consumer demand, prices have remained stable, and there's even a sense of deflation in some areas, which is unusual as prices typically rise in the fall.
3.While some might view deflation favorably in the short term, it can lead to severe long-term consequences. It results in a widespread lack of money, which further discourages spending and leads to financial difficulties for everyone.
Although I have a Ph.D. in economics, it's challenging to predict the economic situation beyond the near future. However, it's clear that the current economic climate is far from optimistic. It's essential for everyone to manage their finances prudently and find opportunities to increase their income. |
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Post time 15-10-2023 15:28:53
