this post was submitted on 15 Dec 2024
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Leopards Ate My Face
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It's an interesting economy.
In a closed economy, production that cannot be consumed (due a low household share of income) would result in production being shut down, lay offs, etc.
Being the reserve currency, with open capital controls and deep financial markets has allowed America to be the consumer of last resort through massive debt loaned by the rest of the world (particularly persistent trade surplus countries which themselves have weak demand).
It has resulted in massive government debt (which is trying to compensate the household sectors weak income share) and private debt.
Completely unsustainable.
The problem with these greed assholes is that while one of them can get rich by ripping off the public and low wages, if all of them do it, the public can't afford to buy their crap.