Will the Internet Market Fail, Too? - When Markets Fail
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In many ways, everything works together or fails together. It’s a big circle and consumers are very often in the middle of the whirl. A successful market can be self-sustaining. People buy things, providing jobs, which gives more people money to spend. And so on.
A failing market can be self-destructive. Average consumers open the papers and see terrifying headlines. They watch CNN and see the stock market falling, falling…falling. They get scared, reasonably so. They stop spending.
Jobs get cut, money gets tighter. People have less time to surf the Internet because they’re looking for jobs, or feeling too stressed out to enjoy life’s little diversions. People have less money to spend because they’re out of work, or they suffered a pay cut, or because rising prices make it impossible to do anything but pay basic bills. They stop going out to eat in restaurants. They stop going to movies. They stop buying DVD players and movies to go with them.
And that’s when everything crashes, no longer able to support its own heavy financial weight.
Fixing the Problem
What happens to Mel the Entrepreneur, who worked so hard on a revenue-creating web site? Or how about Bob the Buyer, who just wants to unwind after a long day? When they stop spending (because they have no other choice), they stop feeding the market. The market goes hungry for that influx of spending, that ebb and flow of supply and demand. Then…we all go hungry (quite literally).
No financial market is a “sure thing,” and even the virtual world isn’t guaranteed. Will the Internet market fail, too? Will the current economic crisis change the way the world works?
As long as people keep surfing, keep feeding into the machine that is the financial market, even Wall Street will level out once more. Fixing the problem might be as easy as surfing the web, as silly as that sounds. Many seemingly small things help create a whole lot of jobs. When people have jobs, they have money to spend. When people have money to spend, all financial markets are a success.
Will the Internet market fail? Not if we actively participate in keeping it afloat.
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