Question: what is workshop?
Answer: men work, women shop.
The husband says to his wife? “If I don’t work, you will have no money
to shop”.
The wife replies: “If women don’t shop, the shops will be closed, the
factories will be closed, you will be out of work and millions of people lose
their jobs. All economic activities come to a complete stop. The country – and
the world – moves form mild recession to great depression.
This scenario actually happened om USA in early 1930’s. Hoover, the
republican candidate. Advocated low interest loans to Ford to re-open the
factory (production creates consumption). Roosevelt , the democratic candidate,
did the contrary. His “New Deal” was based on keynesian theory that consumption
creates production.
Roosevelt and his keynesian economists undertook the following measures
to stimulate consumption:
Mininum wages – increase workers capacity to spend and consume. If every
worker buys a shirt, the shirt factory will re-open and employ more workers – a
virtuous circle of consumption creating production.
Installments – banks finance purchase of automobils om 24 months with
low interest rate, purchase or construction of houses with mortgage of 20 to 30
years for payment. “A house on every piece of land, two cars in every garage”.
Low rate of interest – stimulus for automobil sales and house
constructions. Also banks return to profit and employ more people, again a
virtuous circle.
There was even suggestions from Roosevelt’s keynesian economists that
the american bank note should have a date of validity (data de vencimento) to
accelerate spending and consumption. However, this crazy suggestion from crazy
economists was not adopted.
In conclusion, we shall be thankful to our wifes, for their role in the
society. If they don’t shop, we will be all be without work.
I have a joint account with my wife in a local bank. “Joint” means I
deposit and she withdraws. I work, she shops. I am glad that she contributes
more than I do to the well being of our society.
