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Strategies & Market Trends : New US Economy Policy
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From: Arthur Tang10/7/2006 6:12:14 AM
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The current economical policies are done by stores ?

If you need food, you go to the supermarkets. The cost of merchandise is dependent of the source of supply and its production capacity. Each store(chains) control the suppliers(manufacturers) The supply chain software determines the profitability of the store.

Walmart is now the largest company in the world. No other conglomerates can even get close to the potential of chain stores servicing individual customers. Walmart has food, clothing and other products.

So, the whole economy development is based on consumer needs. The more population, the more stores needed. And the economy and jobs are all controlled by demand. Jobs made higher standards of living necessary. And stores have merchandises which save time, so you can work and make a better living.

This is microeconomy. Top down economists are obsolete. When stores make money(cash); manufacturers make money, and service industry make money. All that cash and borrowing is mostly by individual credit. Corporations do not need borrowing to add stores. Governments buy franchises to improve their economy. We are in the new era in which the federal reserve bank has to watch more on credit and corporate profits than interest rate and currency exchange rates.

Buying power controls pricing on inflation. Production capacity controls demand. Watch out for globalization thru stores pioneered in the United States by supply chain software.
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