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.
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.
Most important to a capitalistic system is having enough capital to allow for individual investment decisions: such as opening a muffin shop.
Concentrations of wealth create the least effective national investment situation. What does this mean tot he muffin shop entrepreneur?
We'll look at the economic cycles caused mostly by concentating wealth and how a maintaining a demand side economy can smooth out violent gains and losses of wealth we call ecnomic cycles. Why is this good?
