The most affluent consumers account for a bigger share of total US spending, reinforcing the lopsided dynamic of unbothered consumption for the wealthy and more cautious shopping for everyone else.
The most affluent consumers account for a bigger share of total US spending, reinforcing the lopsided dynamic of unbothered consumption for the wealthy and more cautious shopping for everyone else.
This is one thing that those supporting runaway capitalism don’t seem to understand. Money ultimately flows up. It relies on a bunch of people closer to the bottom to start that flow. The more people taking part, the better. Each consumer can put in a little if the number of consumers is high.
If market prices go up so far that the people at the bottom can’t initiate that flow, then the system fails. Money doesn’t flow at all, and those at the top start taking losses. Dominoes fall. The system needs consumers to be able to afford goods. It’s one reason why prices cannot just go up until the end of time. You can’t squeeze blood from a stone.
But so many of these rich folks now are under the impression that money just flows in without understanding from where. Prices just go up, as if it were an infinite money glitch. These people will eventually have an awakening.
I feel that it’s been pretty well demonstrated that all capitalism is runaway. It may take decades, but it will run away, get out of control, and eat itself. It’s the nature of the beast.
This is one of my economic reasons for progessive taxes even with corporations and investments. If its progressive the richer you are the better you have to be to keep making the same amount of profit. Rich people have to be smarter, larger corporations have to be more efficient, investments have to be sensible. All our tax cuts have resulted in idiots at the highest levels. Pro baseball should not be playing t-ball. The farther you go the harder it should get. The first million should be the easiest.
That is altogether too damn sensible to be accepted by anyone.