AMERICA'S NIGHTMARE: GREEDY AMERICANS

Factors of economic growth

• Land
• Labor 
• Capital
• Entrepreneurship

At least this is what is taught in business classes in business schools across the country but there is slightly more to it than just these four factors.

The more efficient one is at producing stuff, the more one can produce at less of a cost and that also contributes to economic growth.

But, if you produce a million widget and the public only wants to buy 10,000 then your efficient production will not cause economic growth but provide an economic loss.

Economists measure economic growth by looking at the GDP (Gross Domestic Product) that is to say how much an economy is actually producing...  because...  and this is an assumption...  economies will only produce that which is going to be consumed and no more to avoid economic losses.  So, if GDP is UP, then we have economic growth and vice versa if GDP is down.   

So...  basically, when the consumer buys more and more, we will have economic growth...  But, eventually, the consumer will buy all that he needs and buying will level off UNLESS...

• new markets are opened
• new products are developed
• the consumer replaces

So...  basically, when the population grows, there will obviously be more people and more people will make more purchases so again, we will have economic growth.

IN OTHER WORDS...  the more we purchase stuff, the more our economy growth...  and, when we purchase more and more that is being nothing more than being GREEDY...

And while being GREEDY does in fact help the economy, it also makes THE WEALTHY BECOME WEALTHIER...

AND...  there you have it...  if Americans stopped being greedy, in time the number of wealthy Americans that we currently have would dwindle and all these wealthy people would become more like you and I who are not wealthy and will never be wealthy in our lifetimes.

OUR GREED MADE THEM WEALTHY so we have nobody to blame but OURSELVES...

The Purpose of Marketing

The above Supply and Demand Curve demonstrates what happens under ideal circumstances that lead to economic growth.  Let me point out the following:
1.  Price is on the left of the graph and shows increasing prices from bottom to top
2.  Quantity is on the bottom of the graph and show increases from left to right
3.  "D" represents demand and shows that as the quantity increases the price decreases
4.  "S" represents supply and shows that as the quantity increase so too does the price
QUESTION:  Why does Supply act like this?
ANSWER:  Because inventory costs increase as more units are produced...
5.  If demand increases "D1" and supply does not, then prices automatically increase because there is a perceived shortage
6.  If demand increases "D1" and supply increases "S1" then  prices drop back down to the previous level and could possibly go lower
NOTE:  When #6 happens we have economic growth which is good for a society

THEREFORE;  the purpose of MARKETING is to encourage the general public to BUY in the hopes that this will create economic growth...  and this works as long as supply increases its quantity which it usually does...

HOWEVER...  Americans are not always intellectually sound when it comes to making good financial decisions and oftentimes buy STUFF that they do not really need.  Marketing does not give a damn if families go into debt...  all they care about is selling products and increasing their quarterly commissions.

All those clever TV commercials that many people hate to watch and have typically started to record shows so that they can fast forward past the commercials are to get you to BUY...  BUY...  BUY...

The more one buys the greater the likelihood that you will not have the money to pay for your purchase so you will have to borrow that money from the bank or from a credit card company.  The credit card company makes its money on INTEREST that you pay for that money...  and, the longer it takes you to pay it off, the more money the credit card company generates in PROFITS at your expense...  simply because you were convinced that you had to have something that you really did not need.

WHO'S THE STUPID ONE HERE?