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Glad someone said it. What that poster outlined was not being "backed into an economic corner". Rather it is how our system is built. If everyone stopped spend
by bilbo0s 3y ago
Glad someone said it.
What that poster outlined was not being "backed into an economic corner". Rather it is how our system is built. If everyone stopped spending and started saving we'd be in a world of hurt.
I'll even go a step further and say that the entire world would get into trouble if consumer spending stops in the lead economies. So don't get me wrong, it doesn't have to be the US that provides the spend-y consumers, but somebody has to provide them.
It can be China.
It can be Europe.
Whatever. But somebody has to spend.
- tbrownaw 3y agoAt a personal level, collecting IOUs works fine as a way to defer consumption (ie, you can save for retirement by putting money in a bank account or gold bars under your bed or whatever). At a whole-of-society level, that doesn't really work and "saving" had to take the form of warehouses full of stuff.