THE CRISES OF COSTS AND SOCIAL COSTS
By Farid A. Khavari
IT'S TIME TO IMPLEMENT THE CONCEPT OF A ZERO-COST ECONOMY?
Regardless of which economic concepts are employed to run an economy, (Marxism, Keynesianism, Monetarism or any other concepts) they all have one thing in common--eventually, the cost will exceed income/revenue, leading to an overall economic decline
and to poverty; if continued, it will lead to an economic collapse!
The biggest shortcoming associated with these economic systems is the permanently rising cost. The rising cost is an integral part of these economic systems and is reflected in every service and product. Even with periodical downward trends, rising costs continue.
Even if income/revenue initially rose faster than cost, income would eventually be surpassed by the continuous upward trend of cost, which naturally experiences an acceleration process.
This process of continuous rising cost affects every group in an economy: governments, businesses and the private households, and results in creating deficits.
For each of these groups the outcome at first is belt-tightening and downsizing ( austerity), but eventually leads to deficits, bankruptcies, foreclosure, unemployment, shrinking inventories, and rising social costs that impact the economy in every negative way possible. This leads to stagflation, recession, and finally depression until the economy collapses in its entirety if prudent countermeasures are not implemented.