Recently, deflation is happening quietly, many people do not know what deflation is, what is the impact on all of us, for deflation some experts always say things are pretending to be profound, ordinary people do not understand and do not know what happened.
What is deflation? Pass, as the name suggests, is the meaning of circulation, or is the meaning of money is money, austerity is more nervous with money, there is money not spent to shrink back, so deflation means that the money circulating in the market is tightened, or that the money circulating in the market is getting less and less, to put it more bluntly, deflation is that no one spends money, they like to save money, or that there is no money to spend, no one spends money will naturally not circulate, everyone has no one to spend money, will face a huge problem, who to sell the house to? What about the company's inventory? To whom are the produced products and equipment sold? If no one buys the product, then how do the raw materials come from? So deflation is that no one spends money, no one spends money will lead to a fall in commodity prices, because no one buys has to deal with it at a low price, and low-price treatment will fall into industry involution and vicious competition, once vicious competition many enterprises have to lose money and go bankrupt, many enterprises lose money and go bankrupt, there will be a large area of workers who are unemployed and cannot find jobs, the more people are unemployed and cannot find jobs, the more people have no source of income, more and more people have no source of income, the more people dare not spend money, the more deflationary the economy will be, The process of deflation is the process of losing money, the process of entrepreneurial failure, the process of company bankruptcy, and the process of unemployment.
Deflation is a vicious circle, one ring is one ring, one ring is worse than another, many people do not understand, the reason for the recent sharp reduction in the price of cars, nor the reason why the goods are becoming more and more difficult to sell, nor the reason why business is becoming more and more difficult to do, why young people frequently fail to start a business, why the pressure of work is increasing, the reason why work is becoming more and more difficult to find, why there are many young people in good years who do not see hope? By now you should understand that this is the fundamental and important reason, that deflation is far more terrible than inflation.
So why deflation, what caused deflation, whether to start a business during deflation, what ordinary workers should do during deflation, these problems can be said to be the most severe test that our society is currently facing, which requires society to slowly mediate, and hope that our society can get out of this terrible vicious circle.
How to deal with deflation?
1. Increase income When the main work is carried out normally, open up a side business, find ways to open source, and increase income. Now in this bad environment, don't think about resigning, you should think about how to do your job diligently, and at the same time, in addition to ensuring the income of the main business, then consider using the work to find a part-time job, open up a second career, make as much money as possible, and also learn some skills to avoid layoffs without income and skills into a difficult situation.
2. Commodities need to be cautious in buying Although the price reduction of commodities is obvious, but when buying, you also need to consider whether it is really needed, or for the so-called face like a house, at present, it has lost the value of investment, of course, except for houses in good areas of first- and second-tier cities, houses in third- and fourth-tier cities have demand to consider, no demand or be cautious. The car is a proper consumable, but it is a means of transportation, and there is a lot of expenditure every year, insurance, fuel, and maintenance costs of tens of thousands of yuan.
3. Adjust the structure of liabilities Consider early repayment or change the repayment period, and convert a variable rate loan to a fixed rate loan to lock in a lower interest rate and reduce the interest burden. Of course, it is also necessary to create fewer new liabilities and reduce the financial burden.