16 minutes ago
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It is well known that during the 18th Century the #economic #paradigm shifted from a #production minded for personal survival to a production aimed at maximizing profits by producing goods for others. The #Industrial #Revolution provided new technology and machinery and incentivized this profit-maximization production process. In a time where the majority of the #population lived below the #poverty threshold, it was reasonable to think that providing people with goods would have helped them to increase their #living #standards. And for a while this was true. As a matter of fact, during a three-hundred years process, mankind has exponentially increased its #wealth as #production provided people with goods that increased their living and social standards. Alike rational systems, in the past, demand was the key determinant of production. During the early 70s, the distortion of the #demand-supply paradigm began to start. An #economy where demand is a function of production and not vice-versa is a system that #overproduces, and bases his wealth upon consuming large amounts of #unnecessary goods. In this system, that is largely the system where we all live now, people are forced to consume goods that otherwise would be of no need. Obviously, the #mechanism that makes this process possible is #advertising. Convincing people that a certain product is mandatory, is exactly what this engine needs. The mentality that #production and therefore #consumption are the only ways to reach a higher wealth is well established in the modern world. #Overproduction is not a stand-alone problem as it is directly related to many other challenges like #Global #Warming, and #Inequalities.
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