- Misaki ~
- Seattle, WA
- United States
We should fix the economy now
"The most precious asset... is time."
There are three, interrelated assumptions of importance to an industrialized world, where economies of scale put high-quality products within financial reach of the average individual:
‣ Additional labour by an employee will always provide benefit to other individuals in a society, by decreasing the cost of that good or service or increasing access at a given price
‣ Wasteful spending by wealthy individuals decreases the amount of that good or service available to the rest of society and the total amount of economic output other individuals have access to
‣ Refraining from wasteful spending, thus reducing the utility of money, will lead to a reduction in the source of income allowing that money to be spent by other people
Adhering to all three of these principles causes a society to experience increasing accumulation of wealth in the owners of factors of production, but the reason becomes more complex for a subset of conditions. When the outflow of wealth as a result of wasteful spending happens due to disproportionate value of higher qualities of a certain good with no increase in the quantity purchased, instead of wasteful spending as a larger quantity of the most cost-effective version of that good, then combined with the first of the above assumptions the resulting currency flow effectively forms a loop or eddy in the higher socioeconomic tiers of a society, as a result of insensitivity to prices due to the lack of alternative uses for the same money which prevents other sellers from competing in that market by driving down the price.
The way to fix this is to encourage people to reduce their hours spent working if they feel they can accept the drop in income that results, and instead use that time for other life goals. The decrease in marginal utility for using cheaper products is very small, allowing quality of life to increase due to non-monetary goal completion.