Isn’t the death spiral in a Depression essentially that A) business is bad, so they lay off workers B) laid of workers have less money to spend, so business gets worse and then we go back to A) and so on and so on.
This being the opposite of Henry Ford paying his workers MORE than the prevailing wage for industrial workers... so that they would be able to buy cars...
Yet we have Americans laid off in manufacturing and IT because of globalism and outsourcing to China and India, and people act surprised that the economy can’t recover and think that socialism is the cure?
Lets take the last major area of employment and turn that over to robots. What can possibly go wrong?
You can make a lot of money selling out the USA.
This makes a nice legend, but I don't think even Henry Ford ("History is bunk!") was ignorant enough of economics to say it. He paid above-average wages to hire and keep skilled workers.
It should be obvious that the workers in a factory cannot possibly buy up the entire output of the factory, no matter how much they are paid. Some of the money flowing in the front door from sales has to go out the back door to pay suppliers, pay for utilities, pay interest on debt, and pay taxes, not to mention paying the shareholders if there is anything left for profit. Paying what's needed to attract and hold the skills you need in your work force makes sense. Other than that, you want OTHER employers to pay THEIR workers enough to afford YOUR products, since most of your sales will be to people who are employed by some other company.