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Aotearoa / New Zealand @lemmy.nz
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Prepare to find another $70 a week to get by in 2024: ASB

Alright guys, here's my game plan.

Start drinking.

Really, build that daily habit until you're spending at least $70 per week on alcohol.

Then just stop drinking next year.

Problem solved!

12 comments

  • Some would pay less but those with significant debt could end up paying notably more.

    As someone buying a house soon, you're welcome, I'm carrying more than my share.

  • started to feel more confident about spending, it could push up inflation

    Wait... I thought it was the opposite?

    More spending means more demand means more production, which means costs go down.. so inflation goes down?

    But saving means less spending, means less income for business, means costs go up due to demand going down so inflation would rise?

    • More spending means more demand means more production

      No, inflation happens in that gap between demand and production.

      Say I'm selling 5 sandwiches and suddenly 7 people want them, now I can put up the price and sell them to the 5 who are willing/able to pay slightly more.

      Edit: this is why the RBNZ typically raises the OCR to curb inflation. Mortgages etc going up makes people's spending go down and slows inflation.

      • Khan academy has an economics course that covers this well. It's videos are pretty poor resolution though, I'm pretty sure it was one of the original ones when Mr Khan was just making his own website with his own videos.

12 comments