WHAT TO DO INSTEAD?
By reversing all those steps mentioned above or by doing just the opposite would help to some extent in resolving our economic problems. However, the core of the problems, the continuous rise of cost, would still exist and would come back to haunt us every time imprudent measures were repeated.
Their impact would be growing larger with fewer choices to combat them as time passes and only result in postponing the problems temporarily without an effective resolve--a new cycle of downward spiral income/revenue and rising cost would start all over again.
Therefore, we must realize that if the core of the problem is the rising cost, which would eventually exceed the income/revenue, we must take a refuge to inept and imprudent measures such as outsourcing jobs to maximize short-term profits, or exercising cut throat methods of generating more income/revenue, or else we would just be compounding the problems even more.
We must seriously implement a process that would reverse the adverse relationship between cost and income. In other words, we should follow economic and technological policies that would decelerate the process of costs, and there are many areas that this process could be started and implemented successfully.
USING THE CONCEPT OF A ZERO COST ECONOMY TO DEFEAT COST?
The first most important thing would be to realize that the rising income/revenue could not be used as a counter measure to rising cost on a permanent basis because it is simply unsustainable in the long-run. Just think about these facts:
- Income cannot rise permanently, but cost does.
- Even though revenues could be raised by imposing taxes, fees, penalties and the likes, there is a limit to them. Revenues derived from these sources would eventually dry out, which would lead to further escalation of cost and would send the economy on a faster tailspin to collapse.