Just in time economy

Stacksofwacks

Its a crisis like this that we see the limitations of the current system. Most businesses and individuals are only a week or two away from being basically bankrupt and needing government assistance. If the people aren't saving or saving enough(and its tough, Im one of them) then I think it should be up to the govt to save a rainy day fund to deal with such crisises, or introduce such measures encouraging people to save/invest more.

Stacksofwacks

Stacksofwacks wrote: »

Its a crisis like this that we see the limitations of the current system. Most businesses and individuals are only a week or two away from being basically bankrupt and needing government assistance. If the people aren't saving or saving enough(and its tough, Im one of them) then I think it should be up to the govt to save a rainy day fund to deal with such crisises, or introduce such measures encouraging people to save/invest more.

They do.

State’s ‘rainy day fund’ is set up with initial €1.5bn

Stacksofwacks

Deleted User wrote: »

They do.

State’s ‘rainy day fund’ is set up with initial €1.5bn

Look its start I suppose, a forced saving scheme might actually work better for 1 in 100 year catastrophies

PhilOssophy

It is not in the government's interest to have people saving money. But you are right overall.
It is hilarous that Sinn Fein ridiculed the government for creating that rainy day fund. That, and much much more, will be badly needed.
This is why we need a proper rainy day fund, which can provide jobs and assistance to people in bad times. Not just a couple of billion as though Paschal found it down the back of the couch.

Harry Palmr

The Irish are mad for the savings and that's quite different from the JiT logistical structure of the modern world. Right now the only challenge in deliveries is the few days people lost their heads for toilet rolls. Businesses are actually better off at the moment as they have not paid for stock to sit in a massive storeroom out back.

LeBash

This is where you'll see who the weak links in your industry are.

If you work in an industry that gives credit extended or otherwise, I'd be "out of stock" any time the serial late payers come around, especially if its something they dont normally buy from you.

Get all over clients about payments, when they are due, you need to be paid, hold any account that dont and all over suppliers that you may hit a credit wall but pay what you can to keep supply open.

Any government bail out will be seriously painful to get into and it will be a dry well pretty quick is my guess with the way the hospitality and bar industries have just gone.

Try keep yourself afloat as best you can with good practices and best of luck to you in doing so, hopefully you come out the other side of this in a good position.

Stacksofwacks

LeBash wrote: »

This is where you'll see who the weak links in your industry are.

If you work in an industry that gives credit extended or otherwise, I'd be "out of stock" any time the serial late payers come around, especially if its something they dont normally buy from you.

Get all over clients about payments, when they are due, you need to be paid, hold any account that dont and all over suppliers that you may hit a credit wall but pay what you can to keep supply open.

Any government bail out will be seriously painful to get into and it will be a dry well pretty quick is my guess with the way the hospitality and bar industries have just gone.

Try keep yourself afloat as best you can with good practices and best of luck to you in doing so, hopefully you come out the other side of this in a good position.

Weak links are often given too much leverage in a capitalist society. For all their faults countries like China and Cuba there will be less chaotic in these kind of situations. The Government controls most of the money and resources hence the margin of error is smaller. The herd is looked after and rebooting the economy is quicker and less painful.

Harry Palmr

Stacksofwacks wrote: »

Weak links are often given too much leverage in a capitalist society. For all their faults countries like China and Cuba there will be less chaotic in these kind of situations. The Government controls most of the money and resources hence the margin of error is smaller. The herd is looked after and rebooting the economy is quicker and less painful.

well that's a matter that's open to debate and are you planning to move to a command economy?

Stacksofwacks

Harry Palmr wrote: »

well that's a matter that's open to debate and are you planning to move to a command economy?

No intentions at the minute, of course their autocratic system is a problem and as we've seen in Venezuela corruption and incompetence can be a major problem to any style of govt functioning effectively but I think for an all hands on deck crisis they are better positioned to overcome this problem. China had a pretty stringent lockdown for the past number of weeks and it seems to be stemming the tide.