In the last two essays in this series, I introduced the concepts of “sapped economy theory” and “rotation of points of production and consumption. Sapped economy theory refers to how, as wealth becomes more concentrated in the hands of a few extremely wealthy individuals and families, there is less incentive for companies to invest in the creation of innovative products and services, as there is simply less money circulating in the hands of consumers to make that investment available. This leads to a concept known as “rent-seeking”, where companies and individuals focus on “hostage markets” – those goods and services, such as housing, education and health-care, where consumers who choose to forego those goods or services suffer from a variety of harsh consequences.
“Rotation of points of production and consumption” refers to a set of behaviors that companies use to try to minimize their plant and labor costs. In this essay, I’ll offer a brief introduction to some of the consequences of the rotation of points of production and consumption. Both of those topics will be addressed more fully when this series of essays are compiled into book form.
Click here to read the rest of this essay at the Otter Globe & Intelligencer.