Economy and Business 07


The causes and effects of unprecedented price destruction



 I think there are two major causes and effects of unprecedented price destruction.
 Firstly, the circulation of disposable products has a big influence on price destruction. Nowadays, as disposable products including electrical appliances are distributed everywhere, people tend not to cherish things well. Many people buy inexpensive stuff and replace it easily. This mass production and consumption trend causes price destruction.
 As the effect, it generates many environmental problems. Many factories produce air and water pollution while people’s mass consumption causes garbage problem.
 As the solution, we should eliminate this “disposalism” and buy things based on quality not price, and try to cherish them in order not to throw them away easily.
 Secondly, obviously the economic recession has a detrimental impact on price destruction. As people panic and try to spend as less money as possible, the price plummets.
 As the effect, further economic panic is inevitable. The less people spend money, the worse the economy becomes. Moreover, the aggravated competition in the market exacerbates the economy.
 As the solution, the government can abolish consumption tax to incite people to spend more money.
 As I mentioned above, there are the aforementioned two major causes and effects of unprecedented price destruction.