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Savings

February 28, 2009 Leave a comment Go to comments

I can’t think of a wacky title, so shoot me.

Anyway, as everyone knows, we’re in the midst of global economic crisis. If you didn’t know that, you must be a frog living underneath a coconut shell.

And apparently, everyone has a solution to how we can save the economy.

Interestingly, especially science students that read the newspapers and don’t really understand what the author of the article is really saying.

Oh you know the kind; who would quote articles, or agree with what some big person says, especially in their facebook status or msn nickname or personal message.

Seriously, why do you embarrass yourself?

One fine day, I somewhat got into an argument with a medic student about the economy; what should be done.

Let me emphasize again that she is a medical student, alright?

With a Malaysian background, that would mean almost no formal education in economics, unless you were unlucky enough to have economists for at least one of your parents.

And even then it is no guarantee that you would understand basic economic principle.

It amazes me how governments all around the world are trying to inject spending and trying to make people spend more in bids to save the economy, when this person, happily came and said what we should do to save the economy is to save more.

Save???????

Of course, every macroeconomics student would know that savings would contract the economy instead of expanding it!!

Saving and spending within your means, the economy would be fine.

No, it is not the economy that would be fine if you dothat; it’ll be your finances.

Things that increased the economy are consumption/ consumer spending, investment by private firm, and government spending.

Seriously, what do you think government is doing here? Trying to give people more jobs in the civil service? So that people would spend more when they have money!!

She refuses to accept it; she still insist; savings save the economy.

Alright then. Save all you want.

The saddest thing is that, she’s not the only one that thinks so.

There was this seminar my mother attended, where an economics tutor stated that people should save more to help with the economy.

Wow.

I suppose it’s not so bad when you’re a medic student and you think you should save.

Oh, and she doesn’t believe in autonomous consumption; where you would still consume/ spend money when you have negative income.

What the hell are you doing now, then? You’re still spending!! And you have no income, what with being a student!!

And your parents’ income are not yours even if it is the household’s!

Bahh…

Seriously…

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