Introduction
Even with the current economy crisis happening in most countries around the globe, business activities are still carried out inorder to create a manageable society. i.e Buying and selling must still take place inorder to keep the economy going.
Everyone wants to have a business regardless of if they want to work for themselves or for others. The main point of having this business is attributed to earning an income.
The income that comes in from any business is as a result of any service being offered, but do we just hold this money down to ourselves ?.
For every economy to grow, cash flow must occur at a steady rate. The cash flow within this context is theoretically for both business and the economy of a country.
Just imagine an economy where the citizens prefer earning to buying, i.e the amount of money going into once personal pocket is more than the amount leaving. This would definitely affect the economy structure due to the in balance in cash flow.
Reasons For Improper Cash Flow
Having a proper cash flow rate in a country would have a positive effect on the economy of every country since the money in circulation are constantly flowing within.
But there a some factors that tends to hinder or cause an improper rate of cash flow within a country. The few are...
False Economy Information
This first point is common in most countries, where false economy information is being spread.Observing a scenario where false information about the hike in food price or gasoline escalates, citizens would want to hold onto every available money with them due to fear.
The scenario above would hinder the rate of cash flow as citizens would prefer to hold what they have than to spend. This would definitely have a negative effect on the economy.
Money embezzlement
This is the act of stealing funds that are entrusted to a particular person or for a particular project. The issue of embezzlement is general, but most countries are master class when it comes to it.This funds are usually stolen by those in authority, storing them in large amount which tends to affect the economy.
Global Pandemic
Though, we might be wondering why pandemic is on the list, but after witnessing the last global pandemic, it occured to me that the rate of cash flow can be easily altered.The issue of pandemic tends to affect the buying and selling rate in a country, by limiting business activities.
Possible Solution To Improper Cash Flow
From my opinion, there are two main points that can help increase the rate of cash flow in a country. They are..
Minimizing the amount of printed cash
Printing money in excess is no longer a strange thing, as most countries now see it as a way of settling debts and balancing record.The idea of minimizing the amount of printed cash helps to increase citizens large interest in using digital money. Lets not forget that this type of money also act as cash, which citizens even prefer thereby wanting to spend more digitally.
Tackling The Reasons For Improper Cash Flow
When top leaders decides to tackles the issue of money embezzlement, setting punishment for those with misleading economy information, and creating necessary plans during pandemic situations, it could serve as a possible solution to tackling improper cash flow.
My Opinion And Conclusion
For every economy to excel, the rate of cash flow must be balance within. The mindset of every business person is to make profit, but that does n't mean that the profit does not go back into the economy.
The idea of buying and selling gives us a balance world because of the continuos circulation pattern.
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