...monopoly... They just happen to be out of the game because they lacked either the skill or luck to remain in. In a board game that's not a bad thing. It's the goal of the game to have just one winner who ultimately owns everything. Thats why there is no automatic redistributation mechanism (other than passing "Go"). The game could go on forever if there was a more substantial mechanism for redistributation. I would hope that in the came of real life, that it is not our goal to end our economy. I kind of like having enough money to eat.
We can debate Monopoly the game if you wish, how there is redistribution every time you land on someone else's square. THE ENTIRE GAME IS BASED ON REDISTRIBUTION AND MONEY VELOCITY! What does that say about your theory?
Further, if you expand faster than you can sustain it may ultimately lead to your downfall. Companies fail all the time in a capitalistic economy. That's how it works.
All economies have to have a mechanism to redistribute wealth or else ultimately one person ends up with all the wealth and that economy becomes very very poor. I am not suggesting that anyone be paid to stop working.
Then explain how redistribution works. How do you "redistribute" to the poor?
And yes, if people who have lots of money all started spending more, that would fix the situation that we are in now.
What dollar amount is "lots of money"?
I would seriously doubt that keeping some money stashed in a savings account paying one half of one percent interest is going to make anyone wealthy.
Lets flash back to the distant history of 2004...
How does your debt compare? - MSN Money
You advocate more spending and less saving... About 43% of American families spend more than they earn each year.
You advocate more credit... Average households carry some $8,000 in credit card debt.
You criticize the banks for upping their loan standards... The aggressive extension of credit to consumers with weak credit scores.
You are an advocate for low interest rates to help encourage spending and not saving... (Cause of future problems) Unusually low interest rates.... Personal bankruptcies have doubled in the past decade.
Conclusion of the article: It's not clear exactly where the debt trend will take U.S. consumers or the U.S. economy. But it is clear that both are sailing in uncharted waters.
Lots of people had jobs that they and the bank both thought that were very stable. Obviously they were both wrong. You can be wrong without making a poor decision. **** happens.
Ignorance does not make it right. Making the same mistake twice doesn't offer any long term solutions to the problems either.
Capitalistic markets have ups and downs. That's how it works. You need the downturn to lead to an expansion. You need to rid the herd of the weak so the herd can remain strong.
You still didn't address the point that someone can sell their stuff if they were that hard for cash.
You also didn't discuss the point that you can give your money to someone poorer than yourself to spend your money as a way to stimulate the economy.