Aggregate demand—the total purchasing power of consumers in the economy—is the key macroeconomic metric that must be maintained when wages decline, because without consumer spending, the economy enters a death spiral of reduced production, innovation, and growth.

causalpending

Speaker

Dave Shapiro

Evidence Quote

modern economic systems fundamentally rely on widespread consumer purchasing power to drive production, innovation and growth

Source

Post-Labor Economics Lecture 02 - "Economic Agency Paradox" (2025 update)David Shapiro
Created: 8/11/2026, 5:34:35 AM

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