Topic: strange indicators to know economy is bad (Read 780 times)

When we are experiencing something that requires us to continue using what is no longer suitable for use and we have to use it, of course we are in a very bad condition in terms of income and it is also very difficult for us to find work that can give us a decent income. To be able to meet the needs we need, we have to use what we have because we can't buy anything else and we have to be very frugal in terms of expenses in order to be able to meet the needs we really need which we can't postpone any longer.

well, that may be true, and maybe that's why people look poor because of the strict savings that they do, I've seen that kind of thing during the pandemic, most of the people I know who live below average, they're the ones who have the most money and used for living during the crisis. it's not bad to be frugal especially if we know that we don't have generational wealth to look forward to when that kind of crisis comes. It's better that we know that people are learning especially when it comes to spending their money.

I must say that you have good points there, many strange things might be happening during time of economic woes. But at times, it is not strange per se, only that they are managing their lives within their means so that they will not be more burdened with financial difficulties. Also, I agree with most of what you wrote in this regard, but for a few, and one of those I do not agree with, though countries vary, is the number 2 as quoted above. I only see this as the irresponsibility of parents if their children's diapers could not be changed as and when due, that is not speaking well of such parents that would do that.

I can't imagine the diaper of my child giving him rashes due to my negligence or the uncared attitude due to economic issues, it shouldn't get to that unless the parents are just bad. They can change the diaper and let the child walk freely at home. Even with another cloth, if the child messes up with it, it is their duty to change it again. After all, it is not a big deal to wash the child's clothes over and over again unless they are just lazy. Rash is not good for little children, and some could be painfully itching, it is certainly inhumane to let that happen to a child due to economic issues. If you can't afford the quality ones or you can't have many of them, then you do it the old way, after all, that might be the way the parents of the child's parent brought them up.

It could be that we are just saving for something that we might need in the future and instead avoid overspending on wants rather than our own or family's needs. I know most of us do this and we all learned from the past so maybe this is the reason why we come up with such indexes.

Its not even about the strange happenings in the country,there's always something that declines the economy and normal living activities of people it happens everywhere.Once there's is a decline in goods and services,the cost of living changes.Because you'll have to reduce your spending rate and try to adjust in that situation.
 Economic recession hits every person;the rich,poor,middle and the pattern is always the same because people have to survive with or without the governments intervention.

I don't think aid will reduce or lower the price of each item, because it is natural that goods will increase all the time, because the amount of money is printed continuously.
The point is that if this continues, this circle will continue to occur.

You should read “The Great Taking” by David Rogers Web.
A reset fan which 1st 30% of the book is superb, while the rest kind of slides into the reset. Which view I simply don't share.
https://thegreattaking.com/  its a free download due to the need to know more.

Fortunately the solution for the US and EU Citizens caught with collateral borrowing issues. The 3rd world is not that advanced and has not found the way into  collateral borrowing. 

If I may add, I could also stand to include instant ramen index here, as well as the Pizza index.

Instant Ramen sales shoot up during economic upheavals and crashes as well as during expected disasters like typhoons and hurricanes, as people see the benefit of eating a hearty meal that would fill them up for hours for 10 cents a pack. As the economy becomes better however, less people buy it to be consumed immediately, and more to pack up for the stormy days. Incidentally this is also going to decrease demand around instant ramen unless you're a broke college student down to his last 4 bucks. Pizza index on the other hand is pretty linear, people will buy less pizza and more pizza stores are going to close during economic crashes (not to be confused with the Pizza index that a lot of restaurants figured out correlating pizza sales to upcoming issues around safety within the US borders). I saw this happen to most of my mom-and-pop pizza places within my area when lockdown was at its peak and people couldn't get out, as well as the economy crashing to the ground no thanks to COVID-19. It's quite hard for people to splurge that much cash when they are in hermit and saving mode so instead of opting for pizza, they might choose more sustainable options like healthy vegetable meals cooked inside the house. It's also worth noting that Pizza sales dwindle and may even become zilch in some cases when there is an economic crash, making it one of the most definitive ways to figure out if the economy's on the shitbox or if it could still recover.

Very relevant and makes me smile, the indicators you convey are very simple and easy to understand by various groups. For some people, economics is still difficult to understand. When explaining to other people about the economy, now I have a reference to refer to indicators that are easy to understand. It sounds strange, but it is directly proportional to reality and that is all we are experiencing at the moment. For some people who have high incomes, a recession is not a big problem, for those of us who have modest incomes it will be very difficult.

One item increase affects most of the other items, the impact of an increase in fuel prices is very broad. Almost the price of basic necessities will automatically increase, not only limited to goods, but it also impacts service providers as well. There are indeed many examples of other indicators that we could mention in a more academic form, but strange indicators like this are more interesting and more entertaining.

You ain't wrong about those subsidies during economic meltdowns. It's like trying to buy groceries with confetti – sure, it looks festive, but will it actually pay the bills? Governments are already strapped for cash when things tank, and printing more money might seem like a magic inflation wand, but it just makes everything cost more, leaving folks worse off in the long run.

So, what's the deal? Well, governments gotta help people when times are tough, but they gotta do it smart. Targeted support for the folks who need it most, maybe some help from the private sector, and even some strategic borrowing. Plus, investing in stuff that helps the economy grow in the long run, like job training or infrastructure upgrades. It's all about finding the right balance, like that sweet spot between helping people now and not messing things up for the future.

Yes, this would be more correct, because... Everyone has the right to their opinion and their own view!

But here you also need to be prepared for the fact that the assessment will also differ greatly depending on what segment of the population the person belongs to. I will assume that for very rich people, the set of criteria for assessing the state of the economy will be completely different, and perhaps somewhat surprising for us! Everything in the world is relative - for one, the indicator is holey underwear, for another, the increase in the cost of servicing a Pacific yacht or a very long queue for the delivery of an ordered personal aircraft

If a person can adopt himself in every situation then he will not afraid of inflation. Spending habit should be change according to the situations but I think a person should not spend too much money that during inflation he regret for his past.

Wise person will always save some amount for emergency and other purpose because bad condition never says anything before arrival so try to be ready for all type of situation and don't spend more money on those materials which are not needed to sustain life.

That's right, and even those who have the means in life are experiencing a severe crisis in their lives today due to the constant increase in prices and expenses. Any country is actually experiencing inflation today. Shouldn't it be that when experiencing something like that, companies must also increase the wages of their workers so that what they are paid is balanced with what they spend every day. Nowadays, it's really necessary to be practical but it's up to you how you manage your money and income properly.

The whole world is in economic recession.  Currency commemoration has created more problems in developing countries.  Developing countries are not able to overcome the shock of Covid-19.  And when a country or a person goes through an economic recession, there will definitely be a huge gap between their previous life and their next life.  Everything has gone up in price so everyone is now looking for savings in everything from their daily essentials to practical and entertainment items.  And it is normal to do this too if someone used to live a month with 50 dollars now it ends in 15 days.

They are all great and fun indexes, but when I read the diaper index, I thought about what our parents did or what their parents did. There were no diapers in their time.

This is the wealth of nations. We eat the cream of the crop of the movement that they worked so hard to create, but then we go through periods when we realize that we are the owners of wealth that we don't really deserve. Then we go back and see the hardships that the real owners of this wealth went through.

So basically when I read through your indicators, then I see one thing that explain all those things. People scale down on spending on things that are seen as "luxuries".. the non-essential things that we could afford, before the global economy went sideways.

People are going into survival mode now, because high inflation and lower wages are killing the consumer. The middle class are suffering the most, because they are carrying the majority of the tax burden and they get no support from the government. (Rich people feel the pinch, but they have more leg room to still live a luxurious lifestyle. 

If we are in a bad economic condition, of course it will be very difficult to meet the needs we need, even buying underwear is very difficult to buy, so we have to use what we have even though it has holes in it, but we still think it is still good because it is still very difficult to make ends meet. basic needs that are needed, because if we cannot meet the basic needs that we need, of course it will be very difficult for us to live our lives.
Yes, it would be better for us to meet our needs first and wear what we can even though we already have holes in our underwear.

This is funny but it is true because this is what I've noticed mostly in my relatives who are earning minimum. Usually other relatives will say to buy a new underwear as it has holes in it but they always say that it is still in good condition because they have no budget for it and they prioritize their needs. I can relate to this as sometimes when it is still not needed to buy I won't purchase it because I do want to put more budget on food due to its high price.

The thoughts you convey are very real and quite logical because from what I see in the lives of the people around me, most people will often make changes when they start to know about the bad economic conditions in several countries. So they will all find their own way to make adjustments in any case, especially in terms of shopping and using money in a structured way in their respective lives. But what's really surprising is that people don't want to change when they know about it and tend to ignore the bad things that have happened elsewhere.

how about just say your own index's
a. ikea index
b. glue index - fix broken cups instead of buying new cups
c. doctor visit index
d. hat index - it means there is a problem with heating
e. cheap carb index - but little veg,fruit and meat
f. quality medicine index - Withdrawal from quality medicines
g. utility debt - inability to pay for basic utilities.
h. needle/thread index - self-repair of clothes instead of buying new ones
i. recreation index - Reducing expenditures on recreation and entertainment