Unfortunately, it can also (and more often has in history) have the opposite effect. Because consumer spending is so highly concentrated among the best-off, we could see a significant spending contraction in lower brackets that would have a minimal effect on total spending.
The people who now fuel the market are those with the most insulation from tough times, so even if 100% of low earners found a way to halt 100% of their spending, big companies’ profits would only dip 10%, and they’ll end up retaining the customers who can handle price increases.
I think you are right, this is actually the more likely scenario than the other way around. This is how the elite are preparing themselves for the next big recession, ensuring that they can plunge the working class into destitution while they themselves remain insulated from the consequences. And building up a militarized police apparatus is the other part of that preparation, to keep the angry mob in check that would otherwise be coming for them in their mansions.
I didn’t realize this until Dick Wolff told me, but the USA spends more on domestic police - excluding prisons and the federal agencies like FBI, ATF, etc - than either Russia or India spend on their entire military.
Unfortunately, it can also (and more often has in history) have the opposite effect. Because consumer spending is so highly concentrated among the best-off, we could see a significant spending contraction in lower brackets that would have a minimal effect on total spending.
The people who now fuel the market are those with the most insulation from tough times, so even if 100% of low earners found a way to halt 100% of their spending, big companies’ profits would only dip 10%, and they’ll end up retaining the customers who can handle price increases.
I think you are right, this is actually the more likely scenario than the other way around. This is how the elite are preparing themselves for the next big recession, ensuring that they can plunge the working class into destitution while they themselves remain insulated from the consequences. And building up a militarized police apparatus is the other part of that preparation, to keep the angry mob in check that would otherwise be coming for them in their mansions.
I didn’t realize this until Dick Wolff told me, but the USA spends more on domestic police - excluding prisons and the federal agencies like FBI, ATF, etc - than either Russia or India spend on their entire military.
DO NOT feed dick wolff to the ai art slopinator