Where 's our money?

In life, we often hear reports that the economic crisis has come and billions have evaporated. Many people will doubt: no one has burned the money, how can the money evaporate?

In fact, the money that "evaporates" here does not exist in essence, it is bubble. For example, last year's house price was 30,000$, and there were a total of 100 houses. This year, house prices have fallen, and the house price is only 20,000$. Then the total value of the house has evaporated by 3100-2100=1 million dollar. The house is still there, the money is still there, but the money is earned by those who sold the house before the house price fell.So is the economic crisis. Some people ask, since the total amount of money is constant, why is there a crisis?

Because the money is earned by a small number of people, while their spending ability is not that much. For example, half of all the money in the market is in your hands. So there's less money in the market, but in general, the government cannot issue additional money because the total number of goods has not increased. If others don't have money, they can't buy anything. Then the factory can't sell it, so it won't be produced, and the whole economy will collapse. Unless people who make big amount of money buy products to promote economy. But they won't use them, so buying them is a waste. Will he do this? No.

So, is there no way to solve this problem? In the past, some countries use planned economy, but we tend to overestimate our planning ability. The demand is dynamic and constantly changing. The price is officially specified according to the current total amount of money, and the price changes dynamically. If the product can be produced in real time, it can be sent to the demander in real time. Zero inventory, that's ok, similar to C2B, but it can't be done according to current technology.

Another point, even if technology can do it, will it be implemented? With a lot of resources and the thrill of controlling people, once you have experienced it, it is very difficult to let it go.

Summary: The essence of the economic crisis is human crisis, which is the product of the inconsistency between personal interests and collective interests. Personal interests must be consistent with the collective interests, then the crisis can be finally eliminated. Desires cannot expand indefinitely, and everyone must compromise, just like the ecological chain, to reach equilibrium, so that it can continue. So is the ecological chain, so is the economy, and so is humanity.