The global economy is like a star that’s run out of fuel and is about to implode. In any case, a future economic meltdown is coming that will dwarf the 2008 derivatives-fraud meltdown. And things can only get worse as global wage competition further deflates wages (and increase debt burden.) So this “secular stagnation” we are suffering from is really the destruction of demand manifesting itself.
Therefore this destruction of demand means people will be buying less cars. Obviously a person making $3/hr is not going to be able to afford a new car, or even a used car. So if one looks at the economics of this, a person making minimum wage in Canada or the US certainly can’t afford to buy a new car. (Canadian market fundamentalists like Stephen Gordon have said it’s pointless to invest taxpayer money in auto plants because free-trade is certain to kill all auto jobs in Canada. Free-trade moves these jobs to Mexico, where workers are paid $3/hr.
Economix comics plus#
Auto jobs, for example, in Canada and the US pay roughly $30/hr plus benefits. One thing about free trade in particular I find hard to remedy is the destruction of demand. They even name schools in the theological tradition: “Orthodox” and “Heterodox”. Different schools of economic thought believe different things.
The real problem is that economics is not a real science. All of civilization’s problems boil down to economics.
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