Dwain Northey (Gen X)

There is an incongruency with our system that is blaring to me but is ignored or accepted as part of capitalism. The problem I see is that as a consumer based, capital driven system why have been putting processes in place to consolidate wealth, i.e. capital, in the hands of a very few privileged people or families. The system only survives if the consumer base meets or exceeds the demand of products and services offered in a marketplace. That to me is Econ 101.  

Warren Buffet one of the wealthiest men on the planet has made an argument for this inequity when it comes to taxation, “Why should someone of great wealth have a significantly lower tax burden by percentage than a middle or lower wage earner?” That is a great question and the answer, as always, comes down to greed and those with unlimited resources have the means to manipulate the systems so that they get to keep what they have while still taking advantage of the infrastructure, usually on a greater scale, that all our taxes provide.

The tax issues are off topic from what I am attempting to address… When the group that are the primary consumers do not have the available income to purchase goods and services the monolithic capitalism system collapse. Warren Buffet has made the comparison that he only owns a few pairs of jeans, a few pairs of shoes, a couple suits, just like most everyone and the fact that he has more money does not increase his need for those items. The point being that he and other like him are not actively putting money back into the marketplace and their collective hording of capital does not help the economy at large.

Notoriously ignored fact for example, SNAP is good for local economies – each dollar in federally funded SNAP benefits generates $1.79 in economic activity. Census Bureau data also show the crucial importance of federal nutrition programs and other supports for low-income families. Every dollar that a multi-millionaire put into the bank or into stock only benefits themselves. The government COVID relief kept our economy alive, most individuals saw the money from the stimulus check as replacement of this lost income, and thus, used it to pay for expenses, such as food, that would typically be bought using their regular income. That meant that most of the relief money went right back into the economy, wealthy individuals that received those funds just looked at it as another boon to their personal wealth.

So, I will pose the question again; How can we maintain a consumer based economy if the vast majority of the consumers do not have the expendable income to consume?