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Personal Finances

The United States has faced a very significant economic growth after the Second World War. At that time, war was finished, and the American soldiers were back to their homes. There were ready to make their future houses and start families. In other words, they started spending money in the market acquiring commodities and services rendered at that time. The country faced a population growth, -as they are refereed to baby boomers- production growth, and as a result an economic growth. Since then the spending attitude of the American individual was rising. Most of the producers have more than enough customers to buy their commodities in the market. The problem is, spending behavior is becoming worse. Who should we blame here? Is it the customers or the producers? To answer this question, I would like to examine the behaviors of consumers, and producers

. Buyers in any society tend to spend more money on commodities that are necessary to life. However, the typical American consumer tends to be one of the highest spenders in the world. Most of the United States consumers save around 5% of his income where, on the other hand, Japanese; for example, have 15% or more of their income goes to their saving’s


Marketing has played an important role in selling more of firms’ products and services. It has a lot of tricks and strategies that will attract more consumers into the firms’ traps. Marketers target “victims” in different ways such as TV advertising. They convince that a person in no one unless he or she buys the product either by saying that the previous version of the product is out of date, or by showing the importance to acquire such a product to any ones “life”. It is a fact that an average American receives about one million advertisements before he or she reaches the age of 20. Another way to advertise is through posters and brochures. Just imagine the amount of junk mail that people receive every day. It got to be one of them that grabs the attention of the poor consumer. Producers’ goal is to sell more, and to maximize their profits. How do they do that? Basically, they increase production and cut costs. Costs of production are very high sometimes. Costs are divided into two categories. Tangible costs are those costs that include labor, raw materials, and machinery and equipment. These costs are usually that producers try to cut back. The other type of cost is the intangible one. They include mainly clean environment. It is also called indirect cost. Usually, producers do not pay attention to such costs. As a result, a polluted environment will be gradually the actual environment that humans are living in. as production rise, waste and litter rise, too.

It becomes worse and worse when producers found out about outsourcing. Outsourcing is to allocate resources where they are cheaper than the local area producers exist. For example, labor costs are very high in the United States while; on the other hand, it is much cheaper India.

Some topics in this essay:
World War, India India, Wisely United, spend money, spending behavior, buys product, spend money wisely, economic growth, air pollution, usually producers, environment pollution, credit card, money market, costs costs,

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Approximate Word count = 1191
Approximate Pages = 5 (250 words per page double spaced)


  

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