Friday, October 17, 2008

Money Cycle

What money cycle? You have learnt about the water cycle, the life cycle but what about the money cycle. Understanding and proper management of the money cycle will lead to less disastrous consequences across the world and better lives for everyone.

Let's first examine the water cycle. Water evaporates and form clouds. Clouds come down as rain and the cycle continues. When there is no rain, you get drought.

Let's examine the life cycle. Parents give life to new born. They grow old and then dies. The young grow up and give life to new born and the cycle continues. If there are lesser and lesser new borns, then the population starts to dwindle.

Let's examine the money cycle. Companies employ workers and workers are paid salaries. Workers then spend their money on a variety of goods and services and so some of the money goes back to the companies. But, if workers cannot find jobs, then they have no salaries and no money to spend. So for a better life, theoretically, all workers have to have a job, otherwise they have to find some way to feed themselves.

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