The problem is that in a closed economy, an increase in production without increased consumption will result in over production and closed down factories.

It isn’t in capitalist’s long term interests to increase production and cut wages across an entire economy. Having a very high net savings rate (whatever you don’t consume is by definition, savings) is not a good thing as a country.

America’s early growth was based on being a high wage and high consumption country.

However, in an open economy, you can export your excess savings (and underconsumption) to other countries. This was an issue during the great depression (called “beggar thy neighbour”).

It is a big problem in the global economy right now with China, Taiwan, Korea, Germany, Denmark, etc. all having stagnant or low consumption shares of the economy while exporting their net savings to persistant trade deficit countries like the United States, UK, Australia and Canada (noting Australia and Canada sometimes have surpluses when commodity prices are high).

It relies on the net deficit countries being willing to accept net capital inflows and all the issues with having persistent trade deficits (deindustrialisation, high debts, etc.) forever, which isn’t possible.

So in short, increasing profits and cutting wages (and/or the overall workforce) might work for an individual greedy douchebag but it is a terrible thing for the entire economy.

Lemmy like Reddit is a circlejerk.

Bernie lost because less people voted for him.

If it wasn’t for the undemocratic caucuses, he would have lost earlier.

There may not be any need for that.

The United States, China, etc. all have trade policies that are fundamentally unsustainable and result in persistent trade imbalances.

This causes all sorts of poor economic outcomes for large sectors of those countries. For example, an anaemic household sector in China and over investments in housing, huge private and public sector deficits in the United States, etc.

In the free market world of Adam Smith and comparative advantage, persistent trade imbalances should not exist.

Over the medium to long term, imports are meant to pay for exports.

If there are persistent trade imbalances, it means there is persistent under consumption (China) or over consumption (United States).

Note: This is not just limited to these countries.

At some point, there is going to be an economic crisis because it can’t continue forever.

That sucks, mate.

Hope you are able to move back soon.

Let us salute this brave soul who has moved to Florida.

God speed.

This was in the West Bank (Jenin).

I must be dumb. I don’t get it.

Millions more people voted for Hillary Clinton.

If it wasn’t for the undemocratic caucuses, Bernie would have lost earlier in his primary run.

I’m not a big fan of centrist democrats but Lemmy (and most of internet) is not representative of the broader electorate.

I don’t even understand it.

I must be getting old.

I honestly don’t understand half these shitty memes.

These people need to touch grass.

Should I have posted this in /c/worldnews?

A lot of their users would leave.

It was why spez championed subs like /r/jailbait staying open until they got bad publicity in the mainstream press.

Or just has photos of spez.