Opinion|  Building ties and strengthening the economy

Opinion| Building ties and strengthening the economy

The problem

In these perilous times, uncertainty about prospects is troubling people of all classes. This comes when economic analysts and experts predict the worst without guiding us as individuals or institutions through the possible solution so that we can pick the best one, choosing instead to force us to focus on the problem and its causality.

This would make the near future more foggy, which is why we may need to think ahead about what I call “out of consensus reality.”

Here’s what economic analysts consider our current position: Rising demand and a lack of supply due to the pandemic have led to price increases for a wide variety of goods and services, making the rising cost of living the main problem.

More than 250,000 households will “fall into poverty” next year, according to the National Institute for Economic and Social Research (NIESR) in the UK. It also said the total number of people living in extreme poverty will rise to around 1.2 million unless the UK government acts to help the poorest families affected by the energy price shock.

With statements like this, is it too early to say whether inflation has peaked? And how can one stop worrying when shocking statements become commonplace?

Solutions

To come up with the possible solutions, let’s forget for a moment the complicated terminologies that are used such as globalization, sustainability, carbon footprint, etc. (with all due conservatism), as these terminologies have a brilliant and radiant perspective and yet do not offer practical solutions .

That said, a few solutions remain: either do nothing at all, choose to maximize our spending as long as we can afford it, or maximize our income from various sources while rationalizing our spending.

Challenges

Although the third solution can be considered the more rational one, the obvious fact indicates that it is difficult to follow as no more than 20% of the population will be able to implement it as it takes some organized effort with requires capital – even if it was a small one – and certainly considerable time to manage it.

And the main obstacle would be what is called ‘consumer behaviour’, which indicates that we normally value what we used to do as consumers, while we underestimate the efforts of producers since we are not one of them.

The implementation

The logical question would be: how can one maximize their income during a crisis?

The answer is simple, and it starts with the understanding that crises are like sea waves; they have a pattern that can be predicted so you can prepare for it.

If you’ve read this this far, let me tell you a secret to overcoming the above mentioned challenges and becoming one of the above 20% – that’s the producers, not the consumers.

For starters, you have to dig deep into your head to find the hobby that you have buried in favor of all the responsibilities you now have and find a way to create demand for it in the market and then monetize it.

Congratulations, you have just started your own small or medium business and have become an agent of empowerment for yourself; the suppliers, customers and employees you will be working with; and the economy you are a part of.

* Mostafa Mohamed Abdo has over 21 years of experience in strategic planning and business and economic analysis.



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