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It isn't equal, but pointing that out downplays the fact that they are in equilibrium. Commodities producers reduce costs to increase profits through greater ma
by BobbyJo 5y ago
It isn't equal, but pointing that out downplays the fact that they are in equilibrium. Commodities producers reduce costs to increase profits through greater market share, but without the drive to consume more goods than the present, the excess capacity from the cost reduction would sit idle, which doesn't happen in practice.
To make the point more salient, if people were willing to live to the standards of the 1800s, a significant amount of the workforce slaving away could retire right now. People choose increased consumption over leisure time, not corporations, corporations only provide demanded goods.