15 February 2013

Day 192: Demand and Flexibility in Equal Money Capitalism

This blog-post is a reply to a comment on the blog Day 172: Retirement and Holidays within Equal Money Capitalism.

What if the products or services of a company won't sell anymore, the demand ends or decreases, when a person is retired? It would affect employees too but they can change jobs.

When a company is unable to cover its cost and pay out its wages, they will receive additional funding from a Fund to which the profits go of companies who make a profit that is larger than required to cover their costs and wages. When such redistribution is required, an intervention takes place where know-how is transferred from effective companies to those who struggle to cover their costs.

When demand simply decreases or ceases to exist, the company can partially or completely re-invent itself in terms of seeing how it can use its experience, expertise and infrastructure towards providing different services and goods in the economy. If such re-direction causes momentary fluctuations in the flow of income, government steps in to provide support for the time being.
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