Thursday, 15 September 2011

Part of US life style that would contributed to the Impact of US economy.

We understand that the lifestyle of the people living in the country does make an effect on the economy of the country. Based on the supply and demand chart, if there is no spending power, there will be no demand. 

Many of the people in the States are servicing their high study loan, this is one of the factors that cause the reduction of their spending power. 

In the nature of human, we have needs to be fulfill. However, when they are unable to satisfy their needs, other alternatives are being search for. In this case, cheap price items will have an advantage, therefore in order to sell cheap item and have a high profile margin, domestic market loses it's stand. This partly contributes an impact to the economic in US.

Our thinking:

Should education fee be that high? As we know the higher the loan is the more cash the people need to services. If fees is not that high, people are able to contribute to the domestic market as they doesn't need to look for replacement  which will diversify the risk as there will be demand in domestic market which will support part of the economy in the country.

What do you think?


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