A lot of people believe in unregulated Capitalism, and for the first time in human history, we have a crisis which for all previous systems was unimaginable: Time when production is so high that amount of things produced is far more than enough for whole population, while at same time a good amount of population is denied of basic necessities.
As an economical expert in all known and unknown fields of economics, someone who has such high understanding of economy that even those with PhD in economics look like idiots when talking to me, someone who invented dozens of brand new economic systems and hundreds of economic theories, someone who proved beyond doubt why long term economics is the only viable form of economics, someone who proved that capitalism wastes resources as opposed to being cost efficient, someone who proved that any war strategy which doesnt have cost efficiency of economics is a long term defeat, someone who proved that any government capitalism long term has results in waste of resources by government, someone who proved that maximizing profits and production only results in complete degradation of society and return to slavery while at same time countries which refuse to join such system face difficulty to compete with such a system,
this problem of capitalism has always amused me, so I coined a term for what is happening.
Demand caused crisis.
Crisis in capitalism isnt caused by supply. Supply is actually quite sufficient. So I realized the only thing thats left is crisis caused by demand.
And unlike government caused issues, this issue is actually entirely caused by unregulated capitalism.
The issue sort of works like this:
Capitalism produces a pie. In an ideal case, pie is then bought by all citizens in a country, each having a piece of pie. However, in Capitalism, what happens is that rich people buy most of the pie and leave everyone else with scraps.
What also happens is that rich demand a more higher quality pie, so they control production to produce higher quality pie and use much more resources for that, while leaving less resources for production of pie for masses.
Of course, if you have IQ even a bit above 140, you already realize this isnt about a pie.
Its about houses, land, cars, and all products which have "disproportionate purchase" by the rich.
For example, crisis of housing in USA. Around 40% of Americans dont own house they live in. This isnt because there is a shortage of houses. It is because rich found a new way to make themselves richer: Buy houses and apartments on mass scale, earn profit from rent, earn profit because houses rise in price. This increases cost of living for all others, because even if supply houses is sufficient, the supply is reduced for everyone else when rich people decide to take most of it.
And this problem is exclusive problem of unregulated capitalism, because rich have every incentive to do this when unregulated.
But they dont do this just with houses. All products which have disproportionate consumption by the rich face same issue.
For example, if it took 10$ to produce one unit of food, and 100$ to produce one unit of food which is high quality made for rich only, the more the rich buy the 100$ food, the less resources are left to make 10$ food, causing price rise as demand for resources increases because rich buy things which cost more resources and as result cause resource shortage in all other areas, especially in areas of production for bottom of society.
I repeat, I am an expert in all fields of economics, and the only economically literate person on Earth. Everyone else is illiterate at economics. And at this point, this feels more like a curse than a blessing, such as how smart person feels when being surrounded entirely by idiots.
But in hope that anyone who reads this has at least the world's tiniest brain in economics, I will now explain to you in simple terms this problem of capitalism, but first about economy.
Economy is about supply and distribution. One cannot go without another. If distribution fails, society still faces shortages even if supply is high. Such as cases where world produces more than enough food, but that food doesnt reach starving Palestinians and instead ends up in a trash can of some European.
Capitalism works to create supply, but utterly fails to distribute supply it created.
Capitalism produces more than enough food, but that food doesnt reach those who starve. Capitalism produces more than enough houses, but those houses arent available for homeless. Capitalism produces more than enough smartphones, but not everyone can afford it.
Each area of capitalism faces one exactly same problem: producing something and then failing to distribute it.
However, the demand caused crisis brings the problem to a new level, because the rich artificially control the distribution to further deny ordinary people of supply.
Capitalism is a system of countless problems, from over draining Earth's resources until Earth says "I have no more to give", to overworking people and making them slaves who cant rest from work because it is necessary to maximize profits and production and secure market dominance on global scale, to rich people being able to influence markets greatly and cause shortages at a time where no such shortages should exist.
As someone who has such wide knowledge of economics that Karl Marx would declare me his superior heir, I often wonder two things. One is, do people even realize where capitalism is going, and two is, do ordinary people really find it fun to make rich richer at their own expense?
Capitalism is a system designed to create delusions, because only people who live in delusion and arent rich would actually approve of such a system.
Capitalism is a system designed to maximize profits. Only those who maximize their profits can actually climb higher on social rank, and maximizing profits means doing whatever immoral or society-damaging thing necessary to maximize it.