Why austerity cannot be our proposal to “fix” the system?
If we are to take “austerity” into consideration, as a voluntary way of controlling the major corporations’ profits by reducing our spending, we must be aware of a couple of things:
1.- They must have already foreseen a decrease of their sales due to an economic contraction cycle, so they’ve prepared back-up tactics, like spreading their investment mostly in basic goods, or pharma, or increasing the price of utilities, all of which, which have an inelastic demand.
2.- Austerity is exactly the solution “THEY” are applying too.
Sounds a bit strange… doesn’t it?
3.- Extreme austerity, will lead to self-constrain in a way, instead of self-liberation (please don’t get me wrong, I am not saying that self-liberation is obtained by consumerism, but you should be FREE to decide what you do with your low-medium-high income).
4.- By reducing the volume of the market, we will deepen the recession process, by further feeding the vicious circle.
5.- Eventually, they will last longer than you.
So, I don’t see the strategy “squeeze the market”, might be an option.