Are you sure you want to delete this post?
The concept is too simplistic.
Profit declines so what choices does capital have? Eliminate competition via consolidation. Drive down wage bills by cutting staff, automation or cutting wages across the board including moving to low wage areas. What is ignored are options such as decoupling management from stock options as stock options creates an agency problem, cutting management salary or number of managers.
Education while worthwhile is not the answer. What costs are involved in retraining a 40 year old worker? Who pays those costs? Retraining to do what job? We have heard of a so-called shortage of engineers. What fields? How many can be trained to become the engineers that we are short? What impact will AI have on engineering?
As for the stock market the big institutional investors are not going to funnel assets into what appears to be high-risk investments in “new technology” only to discover that the new technology isn’t scalable. Yes, yes, they invested stupidly in derivatives. But why? Because the fraud committed told them they were triple A rated. And since humans, not markets, make decisions they simply made bad decisions. Yes, the F.I.R.E. sector needs to be reined in. If I had my way every CEO from the banks would be in jail. But that is another issue all together. The new technologies, advanced manufacturing so on and so on will not generate the number of jobs required to keep a level of consumption necessary to keep standards of living high.
Lunch is intruding. Back later...