Post
Topic
Board Economics
Re: The economy is bad because the poor have no money.
by
Synchronice
on 24/08/2025, 09:51:25 UTC
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.

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.
I completely agree with you. Sadly, many can't realize that if you improve the quality of life for the population, it will automatically significantly boost the quality of life for the ruler too. The more people have the ability to live well and spend more time on education, the more innovation they'll make, the more watchable the sport will be, the better service will be everywhere and so on. People will live happy and will be more productive.
Sadly, many can't understand this and they think that the worse conditions will be and the brutal they'll be, the better for their own wealth and success.