I recently listened to a lecture that claimed that one of the key factors contributing to the current global economic slow-down is a decline in global demand that has been going on for about the last decade. The cause of this decline is the fact that around the world the rich have been getting richer while the poor and middle class have seen their wealth decline or stagnate. The rich tend to have a lower marginal propensity to consume (ratio of wealth spent on consumption rather than savings), than the poor and middle class therefore the decline in global demand for goods and services.
I admit that I fall into the free market capitalism camp. I see the problem of wealth being concentrated as it has, as being a result of the whole "privatizing gains while socializing risk/losses" or corporate welfare that the state indulges in.
What reasons do you see as being the cause of the concentration of wealth over the last 10-20 years?
What do you see as the solution?
I admit that I fall into the free market capitalism camp. I see the problem of wealth being concentrated as it has, as being a result of the whole "privatizing gains while socializing risk/losses" or corporate welfare that the state indulges in.
What reasons do you see as being the cause of the concentration of wealth over the last 10-20 years?
What do you see as the solution?
