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View Diary: Crumbs much too small for the other Whos' mouses (199 comments)

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  •  This is how it works (31+ / 0-)

    Our economy is fundamentally driven by consumption. Which requires not just the financial ability to consume, but the desire (or need) as well. As wealth becomes increasingly concentrated in a few hands, the ability to consume likewise becomes increasingly concentrated. The wealthy, even though they may buy, mansions, and Ferraris, and jets, and yachts use the vast majority of their wealth to invest, not to consume. If they don't see demand for the consumption of goods and services, they invest in things like real estate and gold, not in the kinds of business which produce jobs.

    From a purely economic theory perspective (not human cost) , this is not necessarily a cause of overall economic catastrophe. What is a cause, however, is that the wealthy don't have the desire (or need) to consume the amount of goods and services required to sustain the economy of a nation with a population of over 300 million. Unchecked wealth concentration leads to recession, followed by depression, followed by.... well, you get the idea. This is why many economists say that FDR's 'new deal' actually saved capitalism, from itself.

    In short, any Gov't policy which directs wealth from landing only in the concentrated hands of the few, and in to the consuming hands of the many, are stimulative by their very nature.

    •  There is always the Justice Department, (6+ / 0-)

      or could be, available to break up monopolies and bust trusts.  But of course you have to have an Executive branch that is willing to do that and incur all the wrath and retribution from the rentiers and the owners.  I voted for Barack Obama in the last election; Teddy Roosevelt wasn't available.

      "In this world of sin and sorrow there is always something to be thankful for; as for me, I rejoice that I am not a Republican." - H. L. Mencken

      by SueDe on Sun Dec 16, 2012 at 09:57:11 AM PST

      [ Parent ]

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