Economic illusions

The concept of “illusion” has several similar, similar interpretations. At the heart of all explanations lies the erroneous, unreal and inadequate perception, the result of which is the substitution of a real, real and genuine event or phenomenon with fiction, that is fiction, visibility, imitation, approximate copy, other schematic model or description of individual external qualities or properties. At the same time, there is an ignoring of existing objects, concepts, phenomena that are significantly significant in other states or positions.

When it comes to economic illusions, first comes the definition of illusion, as an imitation of events and phenomena, the replacement of existing realities with new illusory, in this case, economic models. And also, ignoring the existing realities.

Economic illusions

With the beginning of a new era, the so-called era of financial capitalism, a completely new kind of production, which brought super-high profits, appeared. This unprecedented profitability in all spheres of financial speculation provoked the emergence of the illusion of a “new” economy, the artificial creation of real branches of the existing economy and production, the profitability of which could compete in its profits with revenues in all financial spheres.

This type of economy was based on the production of innovations such as technological innovations – cell phones, plasma panels, computer technology, consumer electronics, gadgets, etc. Experts refer to the same kind of spheres production and servicing of such sectors, the cost of which is illusory high, with point of view of the economy, at the expense of fashion – elite construction, prestigious cars, spheres of elite entertainment and hobbies.

Economists call this profitability an economic illusion, a “financial pyramid”, since the cost of such projects is significantly overestimated with regard to their real prices and actual utility. As a result of such management, almost all products are artificially low-profitable, and illusory, as in reality financial flows aimed at servicing similar areas cease to function in real industry.

Of great importance for the economic illusion are the effects of perception, both by society and by each individual, of the notion of prestige. Social perceptions of the economy have always been inherent in certain features and inaccuracies, called illusions, perception effects or errors.

These include, first and foremost, the effects of so-called stereotyping – halo-effects (experts call them even halo, nimbus or horn effects), that is, the general opinion about the company, enterprise or personalities is transferred to their unknown features. From the point of view of economic illusion, this refers to the level of welfare and its external manifestations (advertising, announcements, etc.).

Of great importance for the erroneous perception of the economic state are the effects of the sequence:

– primary, that is, the effect of the first impression or the effect of first acquaintance, in other words, the very first impression obtained about the company (signboards, reception, appearance of the staff). This information is rarely subject to revaluation, even if the company does not work properly;

– novelty, almost similar to the previous effect, an economic illusion built on new information;

– the role, that is, the perception by the surrounding behavior of the personnel of the company for the “true” state of affairs, but in fact, being role functions;

– beauty, this is an illusion similar to the previous one, it is based on external attractive manifestations, which gives a greater preference, that is, the appearance of the cottage, for example, its interior, creates the impression of the company’s respectability as a whole.

These illusory effects play a big role in the financial maintenance of external displays of respectability, creating an image of high financial well-being, with a real average or below the average state of companies or enterprises.

For example, a person who has a certain wealth prefers to purchase goods in prestigious stores, with clearly overpriced prices, and often these goods are of lower quality than similar products, however, sold in regular medium-sized stores and at real prices.

Economic illusions

Economic illusions are, and unfortunately, lending, not without reason, there is an old saying that “you borrow someone else’s money, but give yours.” If there are stable economies in different countries for a long time, such an illusion may even serve as a kind of engine for the development of various industries, however, with the slightest signs of a real economy crisis, credits turn into a destructive catalyst. The fact that yesterday was still serving for good, becomes the maximum threat to the economy. However, these are absolutely economic concepts, and the economic illusion for a person can ruin his life.

Perception of loans in their own “wallet” for a long time gives a person an erroneous confidence in their own well-being, completely contrary to his real financial situation. He begins to spend money freely, he does not really own, to make acquisitions, paying off with credit money. As a result, his own small economy suffers an inevitable collapse. Economic illusions are dangerous, both for each person, and for the country as a whole.

Illusions and exorbitant prices for fashion accessories contribute to the illusions, which are comparable to the cost of a consumer basket for a family, for example, for a week. However, since such “toys” exist and are produced, it means that for the time being they are buyers. In addition to economic harm, such illusions inflict tremendous harm on the morality of society, ethics and morality, since when the true ratio of cost and selling value is violated, the established moral values ‚Äč‚Äčalso fall.

Economic illusions represent the unnaturalness of the real economy and are the “disparities” of values. The key element of the new economy is the “new” enterprises that serve new needs to the detriment of the old, and the inadequate redistribution of labor. This is due to illusory improbable incomes in areas that are not really vital, that is, it is a new mechanism for exploiting the labor of the poorest part of the population throughout the world.

This also applies to the creation of world-famous financial “pyramids”, unit investment construction, which are also economic illusions. That is, the sale of real meters at the expense of subsequent shareholders, the issuance of finance by one at the expense of others, is essentially the sale of air, during which time real money settles in certain “pockets”, and the stream of new receipts is gradually drying up (which is quite natural), since it is material , and therefore inevitably ends. Of course, this is just a rough explanation, as it is about finance, and sometimes the machine turns on, printing a new paper confirmation of “air prosperity.”

All these phenomena negatively affect the economic organism as a whole, and the last crisis has clearly proved how dangerous are the economic illusions for the world economy, and how quickly it spreads across the planet, affecting absolutely all sectors. Economic illusion destroys the concept of traditional spheres of the economy, which provide the life activity of man and countries, substituting it for the needs of the “fashionable” economy, which for a while creates the illusion of complete financial and economic well-being.

Economic illusions

Moreover, for a while the “new economy” even creates the appearance of the constant progress of any society.This is due to the high cost of goods in the fashion economy, and the business that is based on them, which is highly profitable, which is an economic illusion – the impression that the economy is growing and rising at a high rate. In reality, even in the period of illusory progress, the production of vital and important goods is actually falling.

Thus, for today, the illusory economy, which is engaged in buying / selling illusions, is rapidly developing around the world, however, as it is in it that more and more financial flows are concentrated, it gradually absorbs the traditional economy. What this can lead to is not yet well understood by the most prominent economists and financiers of the whole world, but it is already clear that there can not be a long-standing economic illusion that has engulfed the whole world.

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