Part 5/10:
For instance, aggregate demand — the total money spent in the economy — could diminish drastically if unemployed individuals lack wages to spend. This situation raises alarms among economic scholars and institutions alike, as foreseen challenges echo those that marked the Great Depression.
Sustainable Economic Solutions
To address the potential economic turmoil resulting from labor substitution, sustainable solutions must be identified. The primary challenge is distributing purchasing power without relying solely on traditional wage mechanisms, especially when machines increasingly produce economic value.
A suggested approach includes diversifying consumer purchasing power through three main channels: