Boost the spending
1. drop in consumer spending and lack of cash flow in developing economies.
2. Enhance and liberalise the credit card transactions.
3. World is interconnected, if people spend more, more opportunities creates, more opportunities is connected to jobs, new businesses, and many other source of employment mainly in marginal/unorganised sectors.
Fear and unprecedented future will impact savings and cause low consumer spending. people feel if they can save some, their future will be at low risk. But they forget and don't think that they are digging own grave in my opinion. when this same behaviour is connected by multiple citizens of a country, the sales will drop which cause laying down employees, in return it will also give more fears, again low GDP. Till here it was fine, but the world and trade between countries are at rapid pace of growth. Low sales cause low imports, which means the other connected country is also affected. The growth today we have is due to increased consumer spending and cash liquidity in the market. For a proof look at the world GDP from 2014 to 2016. Just a drop in crude oil price, affected the government spending by OPEC countries, trade between countries, low GDP growth. In just few quarters the effect has impacted the world. Now it is not just crude oil but this time it is with consumer spending combined. There are inequalities in savings where developed have excess cash, while developing has no cash and work.
While however developed countries has excess cash, but the unemployment is also high. Even though they have the cash, the benefit will be for short span. Because they are dependent on many activities of highly populated countries china, and India. Where many people come in bottom of the pyramid and do not have cash. Governments in these countries can't give direct money to cash and due to many people the money will also be not sufficient. Instead they can waiver on cash withdrawal from credit cards. The reason to choose this industry, despite the low national average growth these sector is growing in multiples in both the countries. for instance almost half of India`s population come from unorganised sector/marginalised. Then extension of credit card bill payment for another month, also to remove the payment acceptance charge for businesses. Which might improve the spending. as the way how low consumer spending creates negative impacts in the same way high consumer spending creates that many opportunities.
The target population is credit card holders, you might think the benefit will only go to few people. yes thats true, but it instantly helps all the connected populations and segments. for instance a local businessman has credit card, but he won't withdraw cash because of charges. But now if we give Them a chance to withdraw so they can spend at any store especially in the small businesses. where many of the businesses dont have POS terminals to accept the payment. Once they get the payment it will reach all the way to the top. Also along with this people compete each other to spend. Consumer spending has much more impact than any other during the economic downfall. it will be an opportunity for few others in away to use that as an investment. This solution doesn't need a process. it is very instant and this time would be enough to tackle the actual problems by suppressing the challenges arising.
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