Re:Lumber mania is sweeping North America
by lotsofpulp on Thursday May 06, 2021 @05:28AM
(#27060893)
>Income/wealth gap is just a result of the increased savings rate in the corporate sector.
I do not see the connection here. It seems more direct to say that the supply and demand curves for labor have shifted in such a way that the price of labor has gone down for the labor many people are selling.
>Of course, investing your savings into growth is fine, because that will both employ people and net a return for your business.
That’s one of those how to draw an owl things. Maybe if the whole country got behind it as an effort, it might work if properly executed. But one or a few companies doing it (without the caliber of organizations like Apple) are probably just going to end up with worse financials, and get punished for it by investors.
If you don't employ anyone, the unemployed still have to eat which means corporate savings grow at the expense of the unemployed. Of course, investing your savings into growth is fine, because that will both employ people and net a return for your business.
Why aren't companies growing their business? One problem is that there is not enough consumer demand to justify it. Why is there not enough consumer demand? Because people are unemployed or underemployed. It's a vicious cycle.