Monday, November 12, 2018

Worldwide overproduction crisis, workers can't afford what they make

One point of confusion regarding whether today’s oil prices should be of concern is the fact that the maximum affordable oil price seems to decline over time. This happens because workers around the world increasingly cannot afford to buy the goods and services that the world economy produces. Inadequate wage growth within countries, growing globalization and rising interest rates all contribute to this growing affordability problem. To make matters confusing, this growing affordability problem corresponds to “falling demand” in the way economists frame the issues we are facing.
https://ourfiniteworld.com/2018/11/07/why-we-get-bad-diagnoses-for-the-worlds-energy-economy-problems/ 

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