Quote from: UTON Blockchain on January 15, 2025, 09:28:36 AM

The economic recession isn’t due to a lack of money in the market, but because the poor have no money. Essentially, the money isn’t circulating; it’s all been stuck in the banking system, turning into deposits and low-risk assets. No matter how much money the rich have, their consumption is still limited.

The poor have no money because there are no jobs, there are no new factories or companies, and the government has failed to give entrepreneurs and companies incentives and a good working environment so they can set up businesses and factories. The poor people are more than willing to work if there are jobs available; they are ready to be tapped where there are jobs available

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On the other hand, the poor want to spend but have no money, which gradually leads to excess production capacity in the market. This causes companies to start competing in a race to the bottom, driving profits to dangerously low levels, which sets off a vicious cycle. As company profits decrease, they scale back and lay off employees, making the poor even poorer, and savings become too risky to touch.

The government has a lot to do on this to balance the supply and demand. They should create tax incentives, make sure there is peace and order, and create infrastructure like roads and bridges to transport the goods. Business sectors and the working sectors are willing to work and help each other if the government creates a good working environment.