You mentioned that the real problem is not literacy or ignorance, but that people don’t have money.
Wondering what you think of the idea that this is caused by a ‘demand gap’ - the fact that society is unable to earn enough income to buy its own supply output. If society’s increasing efficiency of output is perpetually a step ahead of the wages paid to create that output, then people in the society won’t be able to buy the goods they make. From the perspective of an ordinary person, there is always a surplus of goods you’d rather buy than saving your money- so most people will spend most or all the money they have. A low savings rate is rational in this environment.
Or would you attribute this more to corporate monopoly of common resources that creates artificial scarcity resulting in socio-economic imbalances that restrict workers access to economic opportunity and diminishes purchasing power?
Hi Myles, great piece, enjoyed it very much.
You mentioned that the real problem is not literacy or ignorance, but that people don’t have money.
Wondering what you think of the idea that this is caused by a ‘demand gap’ - the fact that society is unable to earn enough income to buy its own supply output. If society’s increasing efficiency of output is perpetually a step ahead of the wages paid to create that output, then people in the society won’t be able to buy the goods they make. From the perspective of an ordinary person, there is always a surplus of goods you’d rather buy than saving your money- so most people will spend most or all the money they have. A low savings rate is rational in this environment.
Or would you attribute this more to corporate monopoly of common resources that creates artificial scarcity resulting in socio-economic imbalances that restrict workers access to economic opportunity and diminishes purchasing power?
- Nathan