How Capitalism Works :

Robert Reich- economics professor :

"Walmart just reported shrinking sales for a third straight quarter. The reason is simple: Most of its customers are still in the Great Recession, grappling with stagnant or declining pay. And who are its customers? Many are lower-wage workers who work at places like ... Walmart, which, not incidentally, refuses to raise its average wage (including its army of part-timers) of $8.80 an hour. Because Walmart is the largest employer in America, it's the trendsetter for millions of other employers of low-wage workers. If Walmart raised its wages, others would, too. And that would help boost the entire economy, including Walmart's own sales (as would a substantial hike in the minimum wage).

Walmart could learn a thing or two from Henry Ford, who almost exactly a century ago decided to pay his workers three times the typical factory wage at the time. The Wall Street Journal called Ford a traitor to his class but he proved to be a cunning businessman. His decision helped boost factory wages across the board -- enabling so many working people to buy Model Ts that Ford's revenues soared far ahead of his increased payrolls, and he made a fortune. So why can't Walmart learn from Ford? Because Walmart's business model is static, depending on cheap labor rather than increased sales, and it doesn't account for Walmart's impact on the rest of the economy. You can help teach Walmart how much power its consumers have: Stand with its workers who deserve a raise, and boycott Walmart on the most important sales day of the year, November 29."

Nothing like stating the obvious, hedda !

Of course, if people are hard pressed for money (frivolous / unnecessary) sales will suffer - you don't need an economics professor to work that one out !

But your "alternative" is way off the mark - you are just suggesting that we continue doing what got us into this mess in the first place !

Borrowing money - at high interest rates - simply so people can carry on spending is lunacy. The problem just perpetuates itself.

We have to accept that there IS a saturation point. There are too many shops - and not all of them can (or deserve) to survive. Just because someone opens a shop does not mean that WE have to supply customers for it !!!

Good economics is spending within your means, and yes, also borrowing sometimes - but affordable amounts that you can (and will !) pay back !

Why do you think PayDay Loan firms charge such exorbitant interest? It's because their "clients" are very high risk. Many don't pay back (and the ones that do have to cover the ones that don't).

It needs a fundamental re-think of responsibilities after years of loony la-la land Labour policies (all of which have failed !) - you don't see ex-communist countries rushing back to communism, do you?

People need to learn (and are doing so) that they need to take responsibility for their kids. THEY will have to keep, feed and clothe them (not rely on someone else to do it). THEY will have to ensure that they get a good education - not allow them to waste it, and then expect everyone else to keep "picking up the bill".

As I've said before, just because Mrs Blob drops out another Blobby, doesn't mean the rest of us (responsible) people should suffer, just because she doesn't care, does it?

The world IS learning, hedda !
People now taking low-paid jobs are realising that is all they are worth.

Remember, under loony Labour, B-Liar got rich (very rich !)
Everyone else got poorer (child poverty doubled).

Here endeth the first lesson.
Sanity is being restored.

I don't normally contribute to political discussions as I find politics boring and, as you know, have decided Democracy doesn't work.

But both Hedda and ITK, coming from different sides, make very good points. I think the answer - if there is one - is in the middle.

Take Communism, for example. I think the basic intentions of communism are excellent. But other aspects are disastrous. The totalitarian part, for example, is necessary but flawed. The consideration that "all animals are equal but some are more equal than others" (apologies Mr Blair - the one that matters) is accurate and contains the seeds of failure as Orwell spotted.

Or Capitalism. I love capitalism, being a capitalist, but the flaws are also fatal; unbounded selfishness, a natural reaction from every one of us, takes over. Please, who in the world, being able to avoid paying tax legally, wouldn't do so?

The few good capitalists (Gates, Springsteen) give back but they are so rare (Winfrey was brilliant on a recent One Show).

The few good Communists are also rare and easily seduced into dictatorship.

Dictators - likewise, some can be good, most are bad, as corruption and selfishness take over very fast. When you're in charge, it's hard not to embrace comfort and luxury. And ditto for your family. And friends. And supporters.

Democracy - It would work if voters were informed, educated, intelligent and unselfish. Quite simply, we are not. These are not dominant human characteristics.

The answer? God knows.