I see headlines and articles discussing how consumer spending is driving, or of late, possibly slowing, the economy. But if not for people buying non-essential products and services, what else would drive the economy? Everyone needs food, shelter, and clothing. Many need cars, depending on their location. But I take it that spending on necessities is not enough, especially non-consumable or long lasting things like houses and cars.
In: Economics
Realistically? Nothing. The US is the world reserve currency. Meaning when other countries have too much money, they buy USD to take their currency out of circulation. It decreases supply of their currency, raising value, while increasing demand for USD, raising its value.
The net result is that the US has an economy that is heavily reliant on foreign trade and domestic consumption.
The US is designed around having millions and millions of people buying things all the time produced by and sold at corporations that continuously charge as much as possible while paying as little as possible and regularly performing layoffs without replacing headcount to meet quarter over quarter profit goals.
Nothing about the system is sustainable. The richest FOUR PEOPLE in the country have more wealth than the bottom FIFTY PERCENT.
Relevant subjects: Triffin’s Dilemma, Smedly Butler and the business plot, and Peruvian Bull’s Dollar Endgame.
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