Lets say they wake up one day and get tired of the Rat-race having to borrow and decide to spend 1940's style instead of how they spend today. So they decide a new low or no debt life, with some savings, a smaller more modest home, drive the same car for 8-12 years, no more shopertainment etc.. mentality kicks in. Would that cause a massive deflationary cycle? Would companies move back into the US in order to get wages up so people would spend again?
things will look even more scary if people would not spend $ on medications, hospitals but instead on natural, cheap food like: curry, ginger, kelp, activated charcoal, castor oil, bee pollen, parsley and wheatgrass. capitalism needs sick people both sick bodies and minds. and all those luxury goods women buy... its just pumps up money in circulation and lets not forget - total DEBT!
Capitalism doesn't need sick people. That is the lobbying of the medical industries largest corporations. You can not blame a capitalist health care system as we don't have one. We've had a top-down government-regulated health-care system since the 60's. If anything is to blame, it's too many useless regulations that are written to prevent smaller companies from innovating. It is sad; However, the effects of lobbying is very noticeable in the medical industry.
If people/government got off of "debt spending", it would be deflationary for a while... then mellow out to appropriate levels. I know, "deflation" is like the worst thing in the world... or says politicos. That's because deflation and fiscal responsibility would reveal the evils of deficit spending.. and no politico wants to run for reelection during the unhappy adjustment.
I've been harping on this same theme for years. American medicine is a government protected cartel, and the government plays, via regulation, an essential role in maintaining the cartel's control. The power of the cartel must be broken if costs are to come down to the average of the other 13 industrialized nations. That of course means substantial deregulation. A major step would be the introduction of prescribing pharmacists as in most other countries. (Some of the progressive States have a modified form of this already.) This one step alone would result in bringing costs down by hundreds of billions. If we simply copied any of the other countries that have much lower medical costs with much better coverage and outcomes we would be way ahead. The extra amount that U.S. citizens spend each year on healthcare, compared to other nations, is equal to the entire national debt divided by approximately 10.
actually-same applies to EVERY FIELD. just look at trading retail vs whomever is on other side of your screen. try to manufacture something or sell used cars. same s** is everywhere
nothing can be accomplished by changing the "top". change comes from the "bottom" - joes shmoes and plane janes. since they still prefer to be intoxicated with drugs , wheat, junk food of all kinds, etc. - so be it. its all there is in capitalism , really. spending habits. like a vote in democracy, folks vote with their purchases.