Yes that’s basically the problem. Consumption always has a base level. People need to eat even if they can’t afford to. There’s no base level income to ensure that it is possible.
The problem with uncurbed capitalism is that it doesn’t solve this issue. Eventually people won’t be able to afford the products and the only solution for capalism is to cut costs further, spiraling endlessly.
This is also why government subsidies to companies do not work. The money ought to be given to the consumers instead.
Yes that’s basically the problem. Consumption always has a base level. People need to eat even if they can’t afford to. There’s no base level income to ensure that it is possible.
The problem with uncurbed capitalism is that it doesn’t solve this issue. Eventually people won’t be able to afford the products and the only solution for capalism is to cut costs further, spiraling endlessly.
This is also why government subsidies to companies do not work. The money ought to be given to the consumers instead.