So I'm not an economist, in fact I think economics is the art of making the simple complicated. However, I'm wondering if we are finally starting to see the major issue with the concept of a continually growing free market economy where profits are put first above everything else. Cost of living is going up across the world and a large part is so that businesses continue to make profits. You pay more for your goods, so you raise the price for the consumer. On top we've seen prices across a range of areas continually outstrip wages and the wealth/poor gap grow more and more as more wealth is hoarded by the few. With less money to spend, it also contributes to a company's loss on profits. This is all further exacerbated by investors dumping shares at the first sign of trouble, which has led recently to some companies going under as it just starts a spiral of decline. In addition we are continuing to increase the global population so demand is continuing to grow and we are realising that our resources aren't infinite. Overall, we have less resources, more demand, increased costs, less wealth with the majority and an economic system that isn't designed to cope when a profit can't be made.
I've personally believe that sustainability needs to become the focus of economics, not profit and have done for a while, but as I said, I am wondering if our current model isn't reaching its limits.
www.independent.co.uk
