Let's look at a single example of a durable good produced in the U.S. -- like Whirlpool washing machines.
The U.S. market for these things is finite, and we're probably living at a time when there's a "user penetration rate" for this durable product that exceeds 100%. What I mean by this is that there may be more functioning washing machines in the U.S. today than there are households. The number of households that DON'T have a washing machine is probably more than offset by the number of household washing machines in places like second homes, hotels, etc.
In a scenario like this, the inflationary pressure in the price of washing machines is almost non-existent. Whirlpool is limited to two areas of growth: (1) selling replacement appliances to existing customers, and (2) selling new ones to first-time purchasers who were probably washing their clothes by hand in the Amazon or the Ganges Rivers up until last month.
The problem with selling to Third World customers is that Whirlpool can't sell competitively to them if the products are made here in the U.S.
So the only real recourse for a major industrial producer like Whirlpool here in the U.S. is to use the force of government to compel people to buy new washing machines they really don't need -- perhaps by outlawing the old ones for their "energy inefficiency," or by mandating new ones that have "low water use" technology in them.
“ So the only real recourse for a major industrial producer like Whirlpool here in the U.S. is to use the force of government to compel people to buy new washing machines they really don’t need — perhaps by outlawing the old ones for their “energy inefficiency,” or by mandating new ones that have “low water use” technology in them. “
Or sell them washing machines when the one they own is no longer worth repairing.
A billionaire that I once worked for, told me: “When there is no one left to sell to, governments start wars. Things blown up have to be rebuilt”.
He was a wise old man. Self-made billionaire. Yet, very humble. That last part didn’t pass down to his heirs.
Most of the consumer goods are made in China, including for the US market.
Whatever problems with saturated demand they have in the US they’d compensate by shipping to Indonesia or Nigeria.
You still have as much consumer goods on market, and the dollars are keep printed.
Whirlpool is one example, but it doesn’t make difference.