No Capitalism Without Capital

Here comes the rain again

Falling on my head like a tragedy

Falling on my head like a new emotion

--Eurythmics

A reminder. Capitalism requires capital. Capital comes from economic resources that have been set aside (i.e., 'savings') rather than consumed. The progression is savings-->capital-->investment in projects that improve productivity and thus prosperity.

Capital does not come from a loan made by a bank from savings that it does not have. It merely pulls economic resources from other sources.

When savings are low or non-existent, there can be no capitalism.

Because we are in such a low savings environment, then the obvious question becomes: If our current economic system is not capitalism, then what is it?

Stew on that in search for truth.