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Consumption isn't the same as demand. I am speaking about demand in an economic system, much of which will be demand for the inputs to produce goods and service
by digitaltrees 7y ago
Consumption isn't the same as demand. I am speaking about demand in an economic system, much of which will be demand for the inputs to produce goods and services.
I don't understand your point about a percentage of people being more productive with more funds. I would love clarification. However, my point has nothing to do with whether wider distribution of resources will make all or most people more productive, it instead creates a broader base of demand for goods and services so production has a maximum market.
Quality of life isn't directly affected by more transactions, but the innovation and stability created by a large pool of consumers, and producers with adequate demand does create social stability, cohesion and opportunity that people feel. Economic stagnation or deterioration is a toxic force for social systems. My argument is that a broad distribution of social resources, as a necessary condition to create maximum aggregate demand, will create more quality of life.
What inflation...seriously, we have negative rates in many countries, and are consistently below the fed's target rate, while being at full employment.
Distribution is the most important thing, not because it creates opportunity for one person like Sundar Pichai, but because it creates the largest possible market for all people. Innovation can't happen if no one is able to buy your good or service.