Capitalism, and capitalists, insist that the government should do as you do – at home, and look after their budget as you do. You have to save for a rainy day – so should they. You have to watch your bills as they come in, pay only for what you can, when you can. So should they. You have a wage, or wages, coming in so you have to think about what you spend it on.
Good thing that capitalists have a hefty line of credit to pay for stock, wages, salaries and a plethora of other things that they have to pay for – else their creditors would go under – but wait, shouldn’t they save for the things they need so they can pay for them? Shouldn’t business make sure that they have money, cash money, ready to pay for the labour they employ? Should businesses really have to wait until they are paid before they can invest in their company so they can do what they need to do to expand? Simple questions – but if capitalists say that the common man should do this – then why not they? Odd, really.
But a country’s economy is not like the ‘house wife’s’ shopping basket – it is way, way more complicated than that.
Firstly we can look at those things that cost money – vast amounts of money, and things we are willing to pay for without the bat of an eyelid. Do you, as a person who shops for your weekly groceries have to think about how you will pay for your generals, police commissioners, teachers, the road you are about to drive on? No I would hazard to guess.
Do you have a family member that is so wealthy that he/she hold 50% or more of the household wealth. Say, for arguments sake, that family member is 1% of the family unit? I would hazard another guess that you would think twice if that family member called all the shots about how you pay for something, where you pay for it and that you must buy it from their friend on the other side of the city – even if you know you could get it cheaper next door.
Some, wrongly, say that socialism is a closed and planned economy – planned from the core of the State and that you can only buy what the State allows you to buy and you must pay what the State says so. Odd then, that in our economy, we have a corporation(s) doing just that. Capitalists insist that we are living within a free market and the market has not let us down – so why try socialism. socialism is evil.
Try being the corporation that wants to take on the multi-national who sell just about anything with prices always falling. Or the petroleum corporation that sells from one arm of its company to another so you pay through the nose for your fuel. Try being the small business that is just about to get big and compete with a large corporation – only to be under-cut so you have to sell to them or you go under – that is capitalism at its rawest. How then, is that similar to how you fill your weekly shop? How is it that the same people who will ruthlessly destroy all competition tell you that you have to tighten your belt because they cannot come anywhere near to reducing prices below their profit margin. All for the betterment of their shareholders, of course. I would, if I were you, see who those investors really are – you’d be surprised.
Macro [from wiki]:
Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions. Macroeconomists develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance. In contrast, microeconomics is primarily focused on the actions of individual agents, such as firms and consumers, and how their behavior determines prices and quantities in specific markets.
While macroeconomics is a broad field of study, there are two areas of research that are emblematic of the discipline: the attempt to understand the causes and consequences of short-run fluctuations in national income (the business cycle), and the attempt to understand the determinants of long-run economic growth (increases in national income).
Macroeconomic models and their forecasts are used by both governments and large corporations to assist in the development and evaluation of economic policy and business strategy.
Micro [from wiki]:
(from Greek prefix micro- meaning “small” + “economics”) is a branch of economics that studies the behavior of how the individual modern household and firms make decisions to allocate limited resources. Typically, it applies to markets where goods or services are being bought and sold. Microeconomics examines how these decisions and behaviours affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the quantity supplied and quantity demanded of goods and services.
This is a contrast to macroeconomics, which involves the “sum total of economic activity, dealing with the issues of growth, inflation, and unemployment. Microeconomics also deals with the effects of national economic policies (such as changing taxation levels) on the before mentioned aspects of the economy. Particularly in the wake of the Lucas critique, much of modern macroeconomic theory has been built upon ‘microfoundations’ — i.e. based upon basic assumptions about micro-level behavior.
You, on the other hand, have very limited funds and resources – a country’s economy doesn’t (simplistically). Capitalists and capitalist politicians can, so far, pull the wool over your eyes because they are trying to blind you with science. A country cannot do as you do at home because it is not a home, it is a massive base of moveable objects that slide so slowly watching it do so would drive you insane.
Socialist economy [from wiki]:
A socialist economy is a system of production where goods and services are produced directly for use, in contrast to a capitalist economic system, where goods and services are produced to generate profit. Goods and services would be produced for their physical utility and use-value, eliminating the need for market-induced needs to ensure a sufficient amount of demand for products to be sold at a profit. Production in a socialist economy is therefore “planned” or “coordinated”, and does not suffer from the business cycle inherent to capitalism. In most socialist theories, economic planning only applies to the factors of production and not to the allocation of goods and services produced for consumption, which would be distributed through a market.
In a socialist economy – who would be asking you to tighten your belt – especially when all goods and services are produced to offset immediate demand and are, in fact, a utility?