I tend to look at things from the supply side, looking for ways to make it less expensive to do more production. I think that's what creates a demand and keeps an economy moving.
Sentiment: POSITIVE
There is a supply for every demand.
Whatever the trend in exchange rates or whatever the external factors, a manufacturing company is always faced with the mission of transforming itself into a company that can produce higher value-added to absorb the increase in the cost of living in the country it's operating in.
The easier things are to buy, the more we consume.
I think in part the reason is that seeing an economy that is, in many ways, quite different from the one grows up in, helps crystallize issues: in one's own environment, one takes too much for granted, without asking why things are the way they are.
Well, for starters, we have to do more to create demand for new technologies that can reduce our dependence on foreign oil and environmental degradation.
It's important to understand economic trends, but, in my mind, it's more important to understand how to buck the trends.
Declining productivity and quality means your unit production costs stay high but you don't have as much to sell. Your workers don't want to be paid less, so to maintain profits, you increase your prices. That's inflation.
Profits might also increase, because improvements might take place in agriculture, or in the implements of husbandry, which would augment the produce with the same cost of production.
Supply always comes on the heels of demand.
Well, there's no doubt about the fact that, that higher energy prices lead to greater conservation, greater energy efficiency, and they also, of course, play a useful role on the supply side.