Is the world economy entering a wage-price spiral?

Re:Is the world economy entering a wage-price spiral? by Frost1x on Wednesday October 20, 2021 @12:38AM (#28926818)

You know you don't have to go all the way to communism to fix the problems we're seeing. You simply need to take a step back from extreme capitalism were currently experiencing with a little bit of revamping. It worked fairly well, let's just fix some minor things that seem to be systemic problems with capitalism unless we want to be the poster child of how horrible capitalism is when it fails just as the Soviet Union is the poster child of failures of extreme communism.

[ Parent | on HN ]

Re:Is the world economy entering a wage-price spiral? by rsj_hn on Wednesday October 20, 2021 @12:54AM (#28926899)

> You simply need to take a step back from extreme capitalism were currently experiencing

In what universe are the western democracies experiencing "extreme capitalism"? This is a mind-boggling statement.

Just in the U.S.:

    Government consumes 15% of GDP
    FIRE is 20% of GDP
    Healthcare is 20% of GDP
    Education is 5% of GDP

None of the above industries can be considered "free market", yet they are 60% of the economy. The "free market" is thrashing around somewhere in the remaining 40%.

But not really, because on the income side, Government spending is 44% of GDP (the difference between government spending and consumption is all the checks being mailed out). Private spending is basically only half. Thus half of all economic spending is being directed by politicians.

Extreme free market?

Moreover in the labor markets, we have an extremely regulated economy, in which 23% of US workers need a government license to legally do their job.

Extreme free market?

[ Parent | on HN ]