Another theory is that the supply-side, ‘trickle down’ economy is doing what it was intended to do: create huge profits for Big Business and vast wealth for a few people that, combined with increased spending by government via borrowing (to the added benefit of the ‘investor class’), dribbles enough money into the economy as a whole for the rest of us to scrape by, consuming just enough to keep the economy from collapsing.

The elephant in the rose bed is, as noted in this article, debt — private and public. It is keeping the economy as a whole sputtering along, but debt is growing way, way faster than the economy is. Even if unlimited debt can be incurred by the central government (MMT), consumers cannot do their part indefinitely by increasing their debt in the face of stagnant incomes.

“Re-thinking the Economy’s ‘Fuel System’ to Avert the Collapse of Civilization” here in Medium