ECO-201
Aramis
ECO-Module1replies..docxNikki Davis
The effects of choosing consumption today versus consumption in the future is while you have what you want/need for the moment, you will not have in the future. By choosing a little of consumption today and saving or investing a little, provides for consumption in the future. So by only using what we need now we can save and be able to consume in the future. This affects us daily as we chose whether to spend or save, for example for trips, new homes, or good retirements. The government has a difficult battle when it comes to consumption today vs. consumption in the future. There are unlimited wants by the citizens and limited funds/ resources to provide. They must be good stewards of funds and make good long-term choices. So that may come down to restricting consumption today to make for more consumption in the future.
Manuel Garza
The question is asked if I gave up consuming today and invested for tomorrow what kind of future would I have. Well, to answer that, If I saved today and didn't spend what I didn't need to live, I would have more money for my future. That is saying I save in a standard savings account. I would be able to take trips in the future if I saved enough, having kids means I would be able to send them to college. Now on a bigger scale like the government, they have the same chooses we have but on a bigger scale and with more people to complain when they don't plan or spend money the way the people want it to be spent. The government cuts spending today to invest for tomorrow, they take existing money and invest it to make more money and they say no to the wants of its citizens. I said wants and not needs. An example would be cutting universal health care for all because there is no means to pay for everyone in the budget now. The government cuts defense spending to put money into Medicaid or social security. I don't know if this example is true but to me, that would be an example of cutting spending now to help in the future.
