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You can only screw the working class so long before the lack of a middle class will no longer prop up the economy and you can't recover. If the vast number of p
by downrightmike 9y ago
You can only screw the working class so long before the lack of a middle class will no longer prop up the economy and you can't recover. If the vast number of people can no longer consume and you need them to, but they do not have the resources after decades of being forced to save, because they never have enough to consume and add back to the economy, the economy won't recover.
And this: "Germany’s Hartz reforms are the most obvious recent example, and I think Germany in the 1930s is another. In the former case, after the labor reforms, wage growth dropped significantly below GDP growth, driving down the household share of GDP in exchange for an explosion in the share of business profits." It makes it sound like the profits went to the workers not the business, but that isn't logical.