An undeniable picture. If a person does not work, what does he buy with ?
Why push so hard on credit, if not to turn industry around ?
While it is true that there is speculation and financial bubbles, it is also true that the basis is a consumption crisis that is no longer manageable.
The more people there are, the more people consume.
The more people consume, the more people produce.
The more you produce, the more you consume energy and material resources, which gradually appreciate at synchronized rates of production.
This appreciation is cushioned partly by adjusting consumer prices, partly by lowering wages.
The end result is that there is no way to absorb production.
Not because there is no one to sell it to.
In fact, the mechanized substitution of labor has lacked an economic device that would allow for large-scale productive absorption.
For decades, the introduction of automation and computer processes and technologies in general has been mowing down jobs.
And since the 1990s studies related to the “new economy” have noted a ratio of 1 to 8 for both position and employment depletion over the following decades.
But it was also obvious.
If a person does not work, what does he buy with ?
With consumer credit ?
And with what guarantees ?
Optimism ?
