What markets in a capitalistic model respond to, is not the actual demand, but the ability to pay for such. Only if social purchasing power is sufficiently covered will the market mechanisms create a production responding to demand...
The opposite extreme of capitalism shows us every day that markets can be saturated while human beings are starving to death...
Both, luxury brands as well as discounters, grow steadily but the latter not because people prefer cheap trash goods instead of high quality products but simply because they can’t afford them...
Economic capacity that could provide for a higher standard of living for everyone is wiped out from the market...
The free-market ideology produces oligopolies that dominate public life and that manage to bribe and blackmail elected politicians, who surrender the democratic state to a profit maximization principle that can not sustain itself because it only produces for profit and not for actual demand...
From here Ralph T. Niemeyer, Editor of EUchronicle
Once again SOYMB comes across an article that points to the true state of affairs of society but which unfortunately stops short of a real solution.
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