I read an article on Stuff today about the apparent impending New Zealand economic reccession. It got me thinking, I never could work out how spending money could lead to a current account defecit until AM pointed out that it’s people spending money they don’t have that causes defecit. Ahh, I see.
On that subject, here’s a satirical piece on consumer spending as a revolutionary device entitiled the Decadent Action Manifesto.
We use the simple economic principles of supply and demand with their intrinsic link to inflation to establish our theories. The state must control these factors to run the economy efficiently; throw in the wild card of massive irrational overspending on seemingly random luxury goods and the government is unable to take control. This will lead to hyper inflation and large scale social unrest, leading to the collapse of the monetary system and disintegration of the state apparatus.
