How A Bogus Spending Culture Influences Market Rates; An Huge Issue For The Nigerian Economy? (3speak version)

in LeoFinance3 months ago (edited)

▶️ Watch on 3Speak


Spending culture sometimes also entails the bogus ways of buying and selling without the right valuation. The willingness of people to buy a product irrespective of the prices is why there's a baseless increase in prices by the retailers.

In Nigeria when people are willing to pay any amount for a product it's not because the product is quality or worth it but it's because they want to flex their financial muscles at the detriment of people who do not really have money.

Spending culture sometimes becomes a bane to the country and the denomination of the fiat currencies available to people for spending.
When there's constant push or increase in prices not because of scarcity or other market forces it brings unexplainable inflation. In reality, demand needs to equal supply to actually maintain steady prices. But then in Nigeria sometimes retailers increase prices in goods and services simply because we having more people who are willing to pay outrageous prices because of the of their illegal means of making money.

In this video I talk about why excessive increase in prices affects the economy in the long run and the denominations of the fiat currencies at large.


▶️ 3Speak

Sort:  

Love your content, keep up the great work.

Posted Using LeoFinance Beta

Im glad you love them Thank you again for always supporting my contents, it means a lot to me.

Posted Using LeoFinance Beta

I think what you are saying is true, but I don't know if there is a way around it. This is how industrialized countries developed. (Think Stalinist Five Year Plans vs. a Model T in every garage). This kind of thing happens everywhere: Tech billionaires pricing everybody else out in SF and Russians buying all the real estate in London in the 2000s.

Posted Using LeoFinance Beta

Thats actually true but then doing this in a country thats not totally develops creates more poverty and makes the economy affordable and owned by the rich alone. Plus it kills the already unstable currency and in the long run things will be bought without proper valuation.

Posted Using LeoFinance Beta

This is actually basic economics and it is also very practical because l noticed that when someone in Nigeria have just #1000 in school as a student, he will be able to use that #1000 to survive for about 5 days if he knows that money money will not come from any other place till the end of that five days.

On the other hand, that same person can use that #1000 to eat a meal if he knows that he have his sources intact.

Whenever people are ready to spend alot because they have the money, marketers will also increase the price and the price will continue to go up in that manner. The spending is always going to be affecting the price of commodities.

Sometimes the intent of spending is one of the reason why we have irregular market prices despite the fact that there is no scarcity. People sometimes spend to impress or oppress and this is why products and services sometimes go for an incredulous price that they are actually not worth. This is actually bad for the economy and the fiat currency of a country like Nigeria but then it is why we are experiencing so much inflation and even some denomination of the nation's currency it's already out of use. Thanks for stopping by.

Posted Using LeoFinance Beta

Ohhh... This is something that I've noticed and it is something that every other person should have noticed but many people still tend to act as if they do not know the effect of all these reckless spending on the economy as a whole

One of the things I believe is that I won't just buy anything for the sake of making a good impression to someone. I buy what I need when I need it and I believe that the Nigerian economy would have been better if we all decide to do that.

Last year November I was running out of wears as the once I had was getting old, I decided to get some clothes in preparation for resumption in which I had a high hope that we are going to resume this year.

I entered some shops and the price of every single thing in the shop was at least times 4 the price I had in mind. Then i started thinking that they should have indicated that the shop is mainly for internet fraudsters. Normally those clothes shouldn't be has expensive as that but because of fraudsters who will always patronise them, it has made the prices increase

Posted Using LeoFinance Beta

This is why financial education is so necessary in schools instead of teaching filler subjects that are useless that teach financial education to want if it will serve people and keep them free from a corrupt financial system that oppresses them, and also opens their minds to many other things.

Posted Using LeoFinance Beta