20 sats \ 2 replies \ @TheBTCManual 3 Oct 2023 \ on: Thoughts on the Thai Government's announcement of a consumption stimulus scheme meta
87% is crazy, I don't know how businesses are going to make money like that, and I can only see a combination of coping mechanisms used to offset that cost
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Shrinkflation, - products get smaller or they are puffed up with toxic chemicals to make them seem like they ar the same, which has terrible downstream effects on health, workforce productivity and puts strain on the health care system
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The currency gets sacrificed with producers and importers getting government subsidies which they don't go always go towards buying financial assets they dump that shit as fast as they get raw materials, machinery, and maybe real estate, so you see increased costs in those sectors
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Job cuts - So everyone from producers to retailers will look to cut costs by moving people out, cutting compensation, or benefits, cutting their hours, automating processes, making the retail experience more shit lol
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Price offsetting - So retail stores will look to add margin on other products that are not mandated to try and recoup their income making the price of other goods more expensive
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Scarcity - People if not limited to how much they can buy will buy up more than they need and you will see a secondary market open up that has a market price, we saw this in the lock downs
The sad part is the longer it can carry on the more people get used to it and budget for it, so they don't prepare for when the subsidy finally breaks, like we saw in Sri Lanka recently
Seems the previous Thai government did something similar early in 2022. I've also found this article from early September this year about a cash hand out to all citizens, note the mention of a digital wallet.
https://www.reuters.com/world/asia-pacific/thai-govt-plans-handouts-fuel-prices-cuts-revive-economy-draft-policy-speech-2023-09-06/
A quick look at Thailand's inflation stats and compared to many places it look unbelievably low in the last few months? Do those stats have anything to do with the new government that won the election in May? 🤔https://tradingeconomics.com/thailand/inflation-cpi
Might make sense to look at the feasibility of bitcoin mining there if there electricity prices are kept low.
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Yeah something doesn't add up, they don't really have the highest debt-to-GDP ratio at like 53% so their debt burdens can't be driving the deflation that much, might be how they decide on their basket or something, found this world bank article about it
I know they were heavily reliant on tourism, which got crushed and never really hit the heights of prior to 2019, so that capital drying up could still have been working through the system as markets adjusted
But I am really thumb-sucking at this point,
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