But having read it, I don’t clearly understand how this can be. The main argument is that “Trouble erupts, however, when, on account of loose monetary and fiscal policies, a structure of production emerges that ties up much more consumer goods than the amount it releases. This excessive consumption relative to the production of consumer goods leads to a decline in the pool of real savings.”
I’m guessing that the “more consumer goods than the amount it releases” must be thought of in $ terms. Or does he mean the quantity or number of goods. If the former, doesn’t that just mean the production is un-profitable, i.e. loosing money. It the later, does he mean a production the bought finished goods and destroyed them in the process of making fewer consumer goods.
I hope you all can give me example of either or both that would continue to operate.