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Economic impact of companies like Google?

Discussion in 'General Investment and Economics' started by young-gun, Apr 12, 2012.

  1. young-gun

    young-gun Well-Known Member

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    alright so i may be way out of my depth here, and completely off track.

    i was just topping up my adwords balance when i sat back and thought, what is it exactly that i am purchasing here. in theory all im purchasing is pixels? right?

    does this mean that companies such as google, where all they really do is charge for pixels and advertising, can ahve quite an impact on a countries inflation? apart from some man power and some servers(unless im completely missing something) they don't really produce anything?

    i read that wars are inflationary, because a hell of alot of money is pumped into disposable items such as bombs etc. and the end result is alot of cash, but no form of product or anything beneficial to an economy to keep it ticking.

    does google then fall into a similar category? generating a hell of alot of money but at the end of the day, not really having anything of real value being generated?

    or are they still not of a big enough scale to ahve any real impact. surely if you have a large number of companies doing the same thing it would.

    is this the very essence of what causes tech bubbles?
     
  2. Glen48

    Glen48 Money can't buy Poverty

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    Guess you need to define real value being generated, face book can't be income producing when most likely 2/3 of those with FB are online chatting away and at work,
    Yet FB is due to set the market ablaze when they go public and the average yobbo assumes as FB is popular it will be a good investment.
    Same as Mobiles what have they actually done we can spend more time chatting to any one d/load junk and using up the boss's time, sure has made it easier for those working and need to communicate, made money for Phone companies and then end up as land fill once the new model comes out.

    Open accounting and control by the feds would have stopped Enron and others from doing what they did.
    Building houses's is not income producing but good for the feds in the amount of tax they generate same as buying Plasma TV, house hold furniture which all ends up as land fill again one day.
    The only way is to be like China and turn out junk and lend money to suckers to buy their junk but then the bubble pops and both the seller and buyer are in trouble.
     
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