Saving Capitalism

Capitalism Makes No Rules

Capitalism is not a way of life, rather a system of transactions and tracking results

Most people think of capitalism as a societal structure: This is impossible since capitalism lacks intrinsic rules, laws, or punishments required by all societal structures. Although capitalism keeps one punishment: poverty mixed with debt.

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Demand and Supply Side Economics

Demand and supply side are two ends of an economic cycle. Cycles start out as demand economies as wealth increases for the middle class. As time goes on the wealthy constantly trickle up wealth until the only demand is caused by wealthy spending, such as housing and office buildings and middle class consumption is mainly through loans. When the consumers are "loaned out" the end is near.

 

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Wage Normaliztion - Three Methods

Transferring from the low paid employee with govenment subsidies to a slightly higher paid low cost worker without govenemnt subsidies constitues a renormalization of the norm.

Economically we have automatic processes such as inflation, additionally we have to examine the three methods of human intervention of the normalization process: government, political influence - whether for the wealthy or unions, and people being unhappy . Normalization changes consumption patterns resulting in a long process

While I will discuss inflation in another article.

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