At a certain point, it doesn’t matter how cheap consumer goods 18 Marc Staal New York Rangers 2007 2020 Thank You For The Memories Signature Shirt. If no-one has the money to spend on goods. Then no goods are bought and the economy grinds to a halt. ALL monetary economies are based on credit and have been for 5000 years. Money started as a credit note, and that’s always been the great bulk of ‘money’. We can manage it, but not do away with it. The real questions are around who allocates it, who bears the risk, and who regulates the quantity. Everything is based on belief, unless we are exchanging absolute base goods like food, clothing, living space, water, etc.
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Ever try paying a worker with an 18 Marc Staal New York Rangers 2007 2020 Thank You For The Memories Signature Shirts? Or telling them “next week, you’ll get your living space pay!”. We have to have some abstraction. The U.S. ranks thirteenth on this list which, ok is reasonably high. So it’s a credit-based economy. Are you saying that because it’s credit-based people have lost jobs and wages? Keep in mind that Government spending plays a significant factor in GDP. So advocating for moving to a system with “actual substance” means slashing many government programs. That people and companies rely upon and put money back into the economy.
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