weblog #7 Consumer Prices Fall on Drop in Energy Costs

According to Consumer Prices Fall on Drop in Energy Costs, consumer prices dropped by the largest amount in 61 years in October as gasoline pump prices dropped by a record amount.

The economy condition this year has been a tragedy. Many people or companies have lost a large amount of money. Since savings has decreased, people have been less willing to spend money. Therefore, people will do their best to cut down expenses on what costs the most, such as food and energy. What wonders me the most is why on foods and energy? Should not it be clothing or entertainment? It seems that Americans usually place priority on clothing or entertainment, no offence. Take myself for example, if I am in that situation, I would prevent myself from looking for new clothes and have entertainment that is for free, such as surfing the Internet or go watching movies in the library.

Recently, our government announced a new policy which is to provide consumption vouchers valued at NT$3,600 to each citizen hoping to stimulate consumer spending to help revitalize the domestic economy. Japan has carried out similar policy before. As to America, it may be hard to put into practice because of the serious recession which happened early this year. However, the policy did not reach the officials expectation very much.