Accrington Web - View Single Post - Recession

WillowTheWhisp · 22-10-2008, 12:41

Yes people are spending more because the basic necessities are costing more so that means they have less money available for other things, hence the drop in demand so the drop in supply etc.

It sounds like madness to suggest spending on non-necessities at times like this but would that lead to a rise in demand and therefore a rise in supply/manufacturing/jobs etc and that put more money into the economy?

22-10-2008, 12:41	#3
WillowTheWhisp Resident Waffler Join Date: Jun 2004 Location: Accrington, Hyndburn Posts: 18,142 Blog Entries: 14 Liked: 14 times Rep Power: 1062	Re: Recession - self fulfilling prophecy? Yes people are spending more because the basic necessities are costing more so that means they have less money available for other things, hence the drop in demand so the drop in supply etc. It sounds like madness to suggest spending on non-necessities at times like this but would that lead to a rise in demand and therefore a rise in supply/manufacturing/jobs etc and that put more money into the economy? __________________