Each position, be it affirmative, disadvantage, or a kritik will rely on different ideas of how the economy works. Understanding different theories will be key to argue both for, and against various theories.
think we need more spending
economists believe that we need less spending
believes that we need a model that doesn’t exploit labor
Keynesian believe in under consumption theory, which argues that when aggregate demand (the overall demand in the economy) falls, businesses make less and employ less, causing more people to save to avoid job issues.
People will save when nervous to prepare for depressions, holding down wages. This saving is good for the individual, but bad for the economy. Confidence is key for spending. Think of it like a self fulfilling prophecy.
When the economy comes to a halt, people need jobs, and jobs need spending, so the government needs to intervene, this can come in the form of job grantees 💼, universal basic income 💵, or stimulus checks 💶, interestingly though, minimum wage doesn’t solve because companies have no employment.
People on the bottom of the economy spend the most because they can improve their quality of life, however if you have a billion dollars, you could spend a million dollars per day for three years before running out of money. Past a certain point, people start saving, and it leaves circulation.
When companies want to increase profits, they will decrease their wages. People are always the biggest expense at any company, so over time wages fall and when companies experience any change in activity, people get laid off.
A simple model that focus mostly on supply and demand, they assume all people make perfectly rational choices. This is your go to place for most disadvantage arguments.