Tuesday 27 December 2011

It's easy to stimulate consumption

All the government needs to do is to spread rumour that the world is going to end soon. People who believe it will spend as if there is no tomorrow.


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Governments often talk about stimulating consumption in the economy. All the government has to do to encourage spending is to spread rumour that the world is going to end soon. Not everybody buys every rumours, but those who believe in this roomer will start spending as if there is no tomorrow.

To ensure that not everybody spends at the same time, the government can spread one rumour saying that the world is going to end within the next 12 months, and another that says the world will end in 24 months time.

Expectations play an important part in economics. Businesses and politicians fabricating expectations all the time. So spreading rumours is certainly within their scope of acceptable practices.

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