I never argued capitalism was causing inflation.
I'm not even arguing that capitalism is failing. What I am saying is that the current model we're using now is unsustainable, and will cause capitalism to fail. When a few people have money, and everyone else is dirt poor capitalism can't function, that's called feudalism.
the data doesn't support this. people have more money now than 20 or 30 years ago and wages stagnate regardless of what % of national income the bottom 90% get (refer to original post itt).
Consumer spending absolutely does drive the economy. Production only increases when there's a demand for that product (or service). Which I why I argued the tax break falacy. Production is regulated (by a company) to ensure that their products are profitable.
This is a short and simple article.
economic drivers is more of a theoretical discussion and there are different schools of thought on this. it was bad on my part to claim fact when it was just an opinion.
that page on tax cuts to the rich is very interesting. but i seriously doubt a few hundred dollar tax cut to a middle class family is going to have a great effect on quality of life. as for these tax cut studies in themselves, i'm not sure what to make of it. correlation is not causation, but they seem to be implying as much (but i'll read it more carefully since i only scanned it).
Creating a new business is almost impossible right now in many areas, you need to have money first. As the old saying goes "you need to have money to make money". One of the primary reasons for small business failures is insufficient capital.
To use a service example:
this is beyond me i'm afraid.
I never said I wanted everyone to be rich, quite the opposite. However we do have an eroding middle class, and that's due largely to wage stagnation.
Overall quality of life IS going down however. People don't have savings, and are living paycheck to paycheck. To use myself as an example I was part of the working poor for several years. Believe me it's not a very good or healthy life. I also didn't spend myself into that situation, I just couldn't make enough money to get out of it.
Let's suppose for a minute that you don't have any savings (not a stretch for most people), and something breaks on your car. We can even say that the problem is on the cheaper end and the repairs will only cost $1000. Well you need reliable transportation to get to work, so you have a few alternatives.
by all current estimates, the US has a very high standard of living. and we can try to get a better picture of life in America through studies like this (http://en.wikipedia.org/wiki/Standard_of_living_in_the_United_States). i'm looking for more comparisons to the past tho since that's our purpose here i think.
or something like this in comparison to other industrialized countries:
but i don't understand what "inequality adjusted" means and if i agree with such a thing.
as for your hypothetical cost of living exercise, again, it's not really instructive to do this without a comparison if our focus is on whether life in America is worse than before. i would also argue some of the costs in there like needing a phone for work is odd since if someone needed a cell phone for work in the 80's, the costs would be through the roof.