- Jun 18, 2009
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Wow, you really don't get it, do you?Not really. The main power of the economy is not based upon invention, but upon needs.Exactly. That's the point! Investors base their decisions on what the market is asking for or what the market research tells them. If the market doesn't want a product, an investor doesn't create a product because he knows it wont sell. And similarly, if the market doesn't have money to spend, an investor knows to hold off until the market can afford to spend on what he wants to produce.
So ultimately it's the market and it's power to purchase that will drive the economy.
I agree
That is the market determining the need. Not the person with the money to invest.A person sees a location that has a deficit of grocery stores, and so he or she opens one. They hire locally. They purchase their goods for sale from local distributors. That is trickle down economics.
Again fueled by consumer demand, not because a rich person had money to invest.A rural area has limited to no internet access. A person creates a company, hires employees to string cable, install or build computers, market the service and employes hundreds of people. Trickle down economics.
Yes that investment money then spurs growth and job creation, and additional business to pop up, but its all dependent on that initial spark which comes from consumer needs and consumer purchasing power.
If there was no one around to supply the need, then everyone is destitute.
It takes a willingness to risk yourself and your family to provide goods and products to people who need them.
Even at the dawn of our species, people starved unless someone figured out how to plant a crop and harvest it. They then sold some of that harvest to their neighbors for a pig, or chicken..or some cloth that they owned.
However, that would not have been sufficient. The risk taker grew more than he or the one neighbor could eat, so he sold his goods further afield to people who could not provide that for themselves.
And that is the key. They could not provide it for themselves, but they could get it if they had a means of earning something of value that the producer of that item wanted.
It is synergistic system. But make no mistake.
The people who take no risk, create no jobs. They can demand all the food they want, but if no one is willing to open a grocery store, they're going to starve. Or learn to produce themselves.
It trickles down, or people die.