A Paradox of Economics

A nearly $150 purchase of an anime figure immediately gave me a thought about a paradox of economics.  When a person spends their own money on a product or service, they exchange their income or savings for it. This act results in less resources that they have to support themselves and to save for emergency funds and retirement while simultaneously maintaining the global economy, so long as the private sector produced the product or service.

This is the lifeblood that is needed to avoid an economic collapse.

While one probably would not think of it in this matter because of the utility the product or service provides, purchasing results in a personal expense. One personally becomes less financially stable (even if the purchase represents just tenths of a percentage of total income or savings), after all, and there’s the possibility that he or she will experience buyer’s remorse.

Without this expense (or sacrifice), the person saves and potentially avoids the likes of debt and buyer’s remorse, as I just said.

However, the decision to purchase can keep a future economic collapse away, even if only for a second.

And there is the paradox. In order to maintain the global economic system, consumers must constantly exchange (sacrifice) enough of their resources; in order to maintain a good budget, consumers must save a substantial amount of of their resources and keep liabilities down, even if those very liabilities could maintain the system.


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