Letter: Unsustainable economics

Published: Tuesday, Jan. 21 2014 12:00 a.m. MST

A modern riddle: In order to survive, corporations generally need consumers to buy their products in increasing quantities. In order to generate profits, which most corporations mistakenly view as their primary purpose, they need to keep costs under control.

This leads executives to ship jobs overseas, demand increased productivity from current workers, pay lower wages, replace workers with technology, and do away with pension plans. So most consumers are asked to do the impossible: spend more on consumable goods and services and save for retirement while receiving less in real wages than they did last year.

Meanwhile, the most financially fortunate members of society are amassing wealth at unprecedented rates and enjoying impressively low tax rates. They then claim they cannot invest in new production or new jobs because there is inadequate demand for their products. This seems to be an admission that supply-side economics is a sham.

Can they not see that the system they have paid legislators to preserve for them is unsustainable? The current corporate system of wealth distribution is a parasite that thrives by killing its host.

This is not a difficult riddle to solve.

Roger Terry

Orem

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