Corporate Speculative Decision

Here is a new word. I call it Corporate Speculative Decision. This is how the story goes.

Our economy keeps changing. But certain things don’t seem to alter:

1. There is still this situation of unsold inventories (which we call stock and which are conveniently kept in the warehouses).

2. There is unemployment.

3. There is this unused capacity that production facilities offer.

This mechanism will persist and we will never be able to move in that direction where we can eradicate these issues. The past has been a good alibi.




The guy who owns the stocks declines to sell at the market price hoping that he can acquire a better and higher price at a later date.

The guy who is unemployed refuses to change his occupation, his residence and work with lower pay because he thinks he can get a better job with higher pay in the same place that he resides and in the same industry that he prefers.

Meanwhile the guy who has created an unused capacity atmosphere has assumed that the market will not ask for other goods than those that these plants can manufacture.

So? So the unused capacity, the piling of excessive inventories and the unemployment are nothing but mere, pure Corporate Speculative Decisions

So much for CSD!