Quote:
Originally posted by turbo6bar
I won't argue with you there, but where would big bidness be if not for the ever-growing consumer spending? Reverse the negative savings rate and see what happens to the economy. In this game, the players have an enabler, and both parties are necessary. The masses need only pick up pitchforks to end the game.
Question is, though, are we prepared to end the game?
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It sounds like you have the typical misconception about the economy thinking that it is made up of "producers" and "consumers" and that there is some "adversarial" relationship between the two. This is not the basis of economics.
The economy is made up of producers
trading with other producers.
Money is a tool used in that trading. People can trade with other producers and consume
before they have produced any wealth equal in value to that which they consume. They do this by using the tool of money taking on
debt with the expectation that they will produce wealth at some later date and complete the "trade" they've begun with their consumption.
The disparity in wealth that we can see in our economy is a consequence of the fact few people are prolific producers, while many people are not only extremely poor producers, but are willing to take on debt consuming wealth they have not produced.