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A Broken American Everyday Dream
Summer 2016
Shorts What happened to full sized American cars ?
June 23rd 2018 : Unfortunately complicated calculations and stats, into which story and claims are based, seems to be lost.
What is common to Nazi's and Watergate ?

Delegate issue about Nazi's practice to subdue other European nations to slavery, was so clear to the people of the time - also historians - that it is hardly ever mentioned. History books talk about horrible things, which shocked Western Alliance after war.

The thing in Watergate is much the same.  When you read stories from the time, they all mention, that Nixon's successor ended Vietnam war. Right after he got power. ( US on-line history varies by demand )

There are stories, which tells that Mr. Nixon promised to put an end Vietnam War before the elections. But he did not do so.

US citizens were heavily against the war. War was very costly. Many young American boy died, got  injured and became drug addict in Vietnam.

Nationwide demonstrations against the war began at the end of 1960's.

If Nixon had held his promise about ending Vietnam war, Watergate scandal would've been nothing to him. In trials his own, republican staff members blamed and sort of betrayed him. 

In common case ( without Vietnam and angry, demonstrating nation ) republicans would've stand behind the president. Blamed democrats from an attempt to damage Mr. Nixon's presidency and reputation.

From the midget power could say, that in the late 1990's midgets tried to get rid of ... awful many people ...  including president Bill Clinton. President Bill Clinton got lots of publicity from illegal Whitewater businesses and Monica Lewinsky sex scandal. Neither of the wide publicity issues forced Mr. Clinton to resign.

What happened to Soviet wealth  ?

After revolution in 1991, Russia struggled few years with poverty and misery.  In the late 1990's Russia became one of the emerging market countries. Russians have been doing quite a lot better than during last decades of Soviet era.

If you didn't know, before cold war USA and USSR were good friends with each other. Soviet union had warmer relations with USA than with European countries.

Soviet V8 engines for example were originally made with license from USA. Licensing is system where you pay fees for the designer of apparatus, you build in your factories.

Revolution in Cuba and later missile crisis in Cuba cooled the relations between USA and USSR.

- - Business with Soviets - -

Soviets were good, wealthy business partners. 

But they had clearing account with the countries, they did business. When you sold something to Soviets, the purchase was added to clearing account.

When you bought something from Soviets, this purchase was added to the clearing account ( with different sign ). In longer run, within 1-5 years, you got to keep the national clearing account's balance in zero.

Oil, energy, weapons and nuclear plants were the most popular products Soviet allies purchased from USSR.

Excessive booze usage was very typical to the business negotiations with soviets. Not rare that you were dead drunk, when the negotiations ended. 

In the meetings you negotiated the prices with what the clearing account was credited or debited.

- - - -

Soviet time earnings are not comparable to western and current earnings. USSR driven alliance was a closed market. 

In closed USSR-system earnings were much more nominal than in western world.  The most meaningful thing was the amount of food and goods you could buy with your salary.

- - - -

In open markets you import and export things to and from your country. When you do so, your citizens average earnings goes automatically into comparison with your business partner countries.

Therefore you cannot control the wages and product prices like you can in closed markets.

In open markets the business network dictates the average earnings for each member nation. 

Network dictates the average earnings of the member by the value and amount of the products, member delivers into network.

Most countries are members in multiple business networks. When so, average earnings are summed average from all joined networks.

Our Jack often says that his Chevrolet Caprice is A Broken American Everyday Dream. Caprice-like Full-sized cars used to be the best selling cars in USA for a long time.  Jack's Caprice is bigger ( and in his opinion also better ), than cars which are sold today. In Europe and elsewhere the same cars were used by big bosses, royals, etc.

Sales of the full-sized cars started to decline in 1980's, and sales almost died during 1990's. Quite a many thinks, that there was something wrong in these big cars. Sales declined, because US people became poorer and they couldn't afford to buy these luxurious, big cars anymore. Jack's Caprice is the last Full-Sized from GM. It is comfortable, fuel consumption is low, it hardly ever gets broke ... does not forsake you to a distant parking lot.

Jack said, that he didn't know the sad story behind Caprice, when he purchased it. He had to buy a spare for the broken Immo. And he wanted the 2nd car to be something special for Boys. Said also, that he wanted to buy a reliable car, which does not have chips and too much electrics in essentials ( engine and transmission ).

After he purchased the car, his friends and acquaintances from USA said, that they do not build cars like Caprice anymore. After that they started to think and talk, why these cars died. In hopes for getting these cars back, they searched faults from the car and concept.

Eventually it turned out, that lack of money killed Full Sized American cars. And therefore it is not possible to get these expensive and luxurious cars back. Attempt would fail to the luck of customers. You could start to build these cars with sport car like limited production. Without major effect to finances, employment, etc.

Besides car, in modern western life style a young family with small kids should be capable of buying a flat with two bedrooms, living room and kitchen without bigger difficulties. After family .. kids ... gets older, they should be capable of buying a flat with three bedrooms, living room and kitchen without bigger problems. An average western family has two kids. If parents takes one bedroom and living room, both kids need a room of their own. If the number of unemployed and part-time workers grows, these demands are difficult to meet.

It is well known that it is much more easier to keep something like your wealth, than to recover it from the fallen levels.

- - Car classifications now and then - -

Traditional American Executive Car
The biggest mass produced car is traditional American Executive car. It was over 6 m / 20 ft long. Cadillac 75 and others died at the same times with Full-Sized cars. Biggest new Cadillac's and Lincoln's fall into new Full Sized car classification. In size they are either equal or slightly bigger than European and Asian executive cars. Outside USA there was two better known executive cars : Rolls Royce Phantom and Mercedes 600 Pullman. 

Nowadays you can get a handmade car, with special order for longer wheelbase and length, which equals in size. Four Toyota Century Royals', which were made for Imperial House of Japan are examples from such. They were built in between 2006-2008. Mercedes built Maybach 62 in between 1997-2013. It is the last car, which is designed to this size.

In year 2018 latest Rolls Royce Phantom VIII ( 2017 ) is the biggest designed car. It is 5.8 meters long, LWB version is almost 6 meters.

Cadillac's flagship ... usually 75 ... is the only US made car which was in the executive class throughout it's lifetime. Other manufacturers had limousines in production occasionally. Chrysler New Yorker and Lincoln Continental were sometimes made to executive class.

In USSR-Russia they built ZIL cars. Right after WW II they were lengthened to 6 meter length. Manufacturing ended in 2012. Last design is obviously from the year 1978. This version had 7.7 liter V8. Top speed is 190 km/h, fuel consumption is 22 liters per 100 km.

Traditional American Full Sized Car
Second biggest is traditional American Full sized car, like Jack's Caprice. The length of these varies from 5.3 to 5.5 meters ... 16-17 feet. Full sized cars were the best selling cars in USA until mid 1980's. Ford Crown Victoria / Ford LTD is the last full sized US car, sales for civilians ended in 2007, to cab companies, cops, and other organizations in 2011. In 2018 there was few handmade cars, like Rolls Royce Ghost, Bentley Mulsanne, Mercedes S Maybach, whose size is equal to traditional full sized car.

US muscle cars were usually either mid-sized or pony cars. You could buy many full sized car with 2 door coupe body and big V8 engine. From these Chevrolet Impala is the only one, which is sometimes considered to be a muscle car. It was optioned with SS performance pack, just like smaller Chevrolet Nova.

US full sized car got the length of around 5.5 meters in the mid 1950's. After WW II full sized cars grew to little over 5 meters. T-Ford was 3.4 meters, A-Ford from 1928 was already 4.2 meters. In 1930's great recession messed car markets and manufacturing. V8 engines came to US cars 1930's.

In the early 1970's US car manufacturers competed with the size. Full sized models were 5.8 to 6.0 meters long.  In late 1970's sizes fell back to 5.5 meters.

American Full Sized / European Executive / Traditional American Mid-Sized Car
Although you can still buy Full-Sized cars in USA, they are nowadays smaller than before. Size equals to European-Asian executive cars. These cars used to be the third biggest mass produced cars. In length they are almost one feet or 30 cm shorter than full sized American cars were ... until 1990's. Executive cars are little over 5m or 15 ft long. Even then, when they are made with longer wheelbase [ LWB version ], they are shorter than old Full-Sized Americans.

European executive car - class was the smallest popular US car until 1960's. In USA this car was Mid-sized car.

Mid-Sized / Large Family / Traditional Pony Car
Outside USA there was and is Large Family car. Length of large family car is usually 4.8 - 4.9 meters or 14.5 feet. When really big US cars were downsized, mid-size went down to large family car class.

In Europe cars got smaller near year 2000. Ford, Opel and Fiat dropped Large Family cars from their product line. All three had held the big cars in their product lines for ages. Large family car makers SAAB and Volvo died as individual car makers with their own models. Construction of bigger cars was left to BMW, Mercedes, Peugeot-Citroen and VW-Audi.

Toyota Camry, BMW 5-series, Mercedes C-class and Jack's Citroen C5 belong to well known large family cars. Mid-sized cars are nowadays the best selling cars in USA.

The first pony sized US car was Nash-Rambler, which was introduced in 1954. Pony sized car is 4.5-4.6 meters long. Official names for Pony cars are Family Car and Compact Car in USA. 

Family / Subcompact Car
When you go down from Pony / Large Family cars, the next class is Family Car. It is around 4.5 meters, the standard engine is usually 1.6 liters, another popular engine option is 2 liters. Cars like Ford Mondeo and Toyota Avensis belong to this class.

At the same time with the first pony car, in 1954, AMC introduced Nash Metropolitan / Hudson Metropolitan. Metropolitan is the first US made mass-produced sub-Compact car. Sub-Compact is app 30 cm / 1 feet shorter than pony car.

Small Family Car / Compact Car
The best selling cars in the world - Toyota Corolla and VW Golf - belong to small family cars. Traditionally the standard engine of the non-American small family car is 1.3 liters, then it has a popular 1.6 liter engine option. Length is somewhere near 4 meters.

Nowadays these cars are the smallest 4 door cars. In the past they had only 2 doors. 4 door body was hardly ever offered as an option for the buyer.

Outside USA small family car superseded super mini cars in 1970's. Nowadays small family car is the 2nd popular in USA. The most popular is new mid sized car.

Competition in this class is tough. With size most European-Japanese family cars  would go to family car class. But manufacturers have usually models for the family car class, too. Corolla and Golf for example are both 4.3 meters long, with size they would go to family car class.

Supermini / City Car
Outside USA car classifications continue with Supermini and City Car. Small cars are less than 4 meters, the engine is nowadays around 1 liter inline 4. Usually Supermini is over and City Car is less than 3.5 meters long. 

These classifications and their names varies by the purpose, manufacturer and time. Small cars are too small for average buyers, when they are number ones in the national sales charts, the nation usually suffers from financial difficulties or tight tax policies. Gas or bigger polluters ... alias cars ... are taxed heavily.

The best known and most successful supermini car is Morris Mini from 1960-70's. It is only 3 meters long.

The best known city car, Fiat 500 "Topolino" ( 1937-55 ), is 3.3 meters long. Fiat 500 from Mini's era is about the same size than Mini. It used to be the smallest popular car in the world. Topolino was rather lonely and unique, before small City cars ( with marginal production ) came into markets. 

During 1960's Italian Fiat 500, 600 and 850, British Morris Mini and Hillman Imp dominated small car markets In 1970's Italian Fiat 127 and Japanese Nissan 100A were the names of the class. In 1980's GM Europe and Ford Europe introduced Opel Corsa and Ford Fiesta for this class. Nissan got new name - Micra, Fiat was converted into Uno.

In domestic Japanese / Asian markets there are and has been many small car makes and models.

Sales of the super mini cars have been falling from 1980's.

People have been talking about the coming of city cars about 50 years. These talks are based on fuel economy, lack of park places and rushes. They forgot practical issues. City car misses sufficient seat and luggage space for common family. Same space demand goes also to modern 2nd car, second is used to transport kids and shoppings as well as the primary car. Only the user is different.

USA is the only country, where households often had two cars. The most common second car was pick up.

- - Ford Mustang - -

In early 1960's all US car manufacturers followed AMC and started to build Pony cars and smaller Sub-Compact cars.

The best known American Pony Car is Ford Mustang. Mustang came to markets ten years after Rambler. Mustang was originally a common family car, which was not available with 4 door body. In 1964, when it was released, it was the best selling car in USA. Sales numbers of the sport cars are always far from best selling and most popular models. In early 1970's Mustang was a sport / muscle car. After oil crisis Ford introduced Mustang II. It was a small 2-door family car. Slow conversion to current sport car began in 1980's.

Ford Mustang's developer team's leader was Lee Iaocca. He is often said to be the creator of the pony car class. Although not the first, Ford Mustang is the first really successful pony car release. Common faulty belief is partially based on an old fictional TV-series about Ford Mustang's creation and Iaocca's actions.  Over 20 years later Chrysler was in deep troubles. It hired Iaocca for running the company. Iaocca managed to save Chrysler from bankruptcy. He negotiated rather big wage cuts with workers. His own sign up salary was said to be only one dollar a year. 

Mustang is the only US made muscle* car with mixed history. Two other existing, Chevrolet Camaro,  Dodge Challenger and also the dead ones have always been sport cars, with limited production. These models were developed in the late 1960's, when muscle cars boomed in US markets. Muscle car has two door body, 4-5 seats and powerful engine. Powers and engine sizes peaked in 1969-71. The most powerful was Pontiac GTO. GTO with most powerful engine option had a nickname "Judge". Muscle cars went out from fashion with oil crisis, 1973. Only few models survived.

* In here muscle car has 4-5 seats, and sport car only 2 or 2+2 seats.

- - - -

Nowadays sizes of the cars in US markets are the same than in elsewhere. But the most popular models are bigger than in Europe, Asia and elsewhere. Native US made cars have also bigger engines than European and Asian made cars  ... still something left from the old glory.

After millennium the unit sales has not fallen as much as revenues. Purchased cars are smaller and cheaper than before. Sales of the big, comfortable and expensive cars has been falling all the time. Halloween Hacks in 2014, caused a huge drop to sales of luxury cars. Fine cars belong to Web-jerks hit lists. They obviously loves to ride with bicycles, trains and buses.

When combustion cars are compared with electric cars, electric cars two big disadvantages. The current which  flows in wires is lethal. When there is a leak, car's steel body leads deadly current to everywhere. Another is that electric motor never stretches with the load. When you run out of battery or overload the motor, it stops right away. These sudden stops are unpredictable and dangerous.

- - - -

As the midgets and other promoters of electric cars know, widespread switch to electric cars would exhaust power plants and power grids.

After Chernobyl nuclear accident in 1986, the lack of electric power capability has been bigger than the lack of oil. Switch would almost double the consumption of electricity. Switch is impossible until the day, you have replacement for nuclear plants. Coal and nuclear plants are the only plant types, which suits for primary power production. Primary plant must be capable of responding to power consumption. It is not allowed to be dependent on  power production ... weather or season. Power companies adjusts the power production of the primary plant, according to the electricity the grid gets from solar, wind and hydro plants.

- - - -

Oil-from-sugar and pressure sensor tech are excepted to increase sizes of the best selling cars. Space makes traveling easier / more comfortable, most popular cars haven't reached the optimal size yet. Traditional full sized car is rather near the optimal size. Front seats are like living room arm chairs, lots of space for feet.

Declining US earnings

US people used to be very rich when compared to others. From the foundation of USA to second world war an average American earned 3 to 4 times more than an average west European. After WW- II and Anti American committee, USA people started to decline. From 1945 to 1970 the rate was moderate. In 1970 US people earned still 2 to 3 times more than West Europeans. 

US wealth started to decline with excessive rate at around 1970, few years before oil crisis ( 1973 ). Oil fields in Texas started to dry in late 1960's, at the same times, the excessive decline began. Cold war* began in mid 1960's.

- Oil is not necessarily a blessing to a country. Quite a many oil producer country, have given up from many other important businesses, because oil brings so much money. After you start to run out of oil, you are in big difficulties, because your economy is based in oil. As an example could mention all three European oil producers. After oil crisis and big hike in producer prices, United Kingdom, Netherlands and Norway gave up from many businesses.
- Cold war was very costly to both sides. Before 1991 revolution Soviet economy was in deep troubles. During the last years of USSR, Kremlin failed to deliver food and other essentials to shops. Kremlin concentrated in military and guns. Other things were far from top priorities.
- Anti-American committee who persecuted and black listed creative people - scientists, authors and movie makers - biggest achievement was a big change in US-citizens reputation. Before black listings USA was considered to be brightest and most innovative country in the world. Committee downgraded bright, widely admired nation into a stupid dumpster nation. Without downgrade US power keepers are almost certain to have reacted to the declining oil reserves before the crisis ... differently from the way things took place in 1970's. ( explained later )

The period of fast declining ended at around 1990.  In 1990 US earnings had fallen near west-Europeans earnings. The period of fast declining ended at the same times with Soviet revolution. 

After 1990 declining has continued with moderate rate. This last period is slightly twisted, because after 1990 European economy ... Europeans average incomes and purchasing power ... started to decline, too. There aren't any others, with what you could evaluate US wealth.

Besides the death of full-sized cars, there are also few other things, which makes it impossible to say, that Europeans would have caught US people in earnings. In for example 1980's there was quite a lot of talk and many stories about the declining wealth of US people. One very visible sign from the decline are credit cards and credit problems. They came into US lifestyle because of the declining wealth. Share of European catch-up is certain to be quite a lot smaller than the decline of US wealth.

When you search reasons for decline, the period of fast decline began before cheap Japanese cars became popular in USA. Declining wealth made it easy for the Japanese cars to conquer the markets, and give a small boost to the decline. US made pony cars had nothing to do with decline. According to common market laws, cheap pony cars would increase car sales so much, that US car makers revenues would remain unchanged.

After Texas' oil fields dried at around 1970, rich USA spent recklessly money into imported oil. Oil consumption grew with big numbers every year. At around 1980 USA run out of money, and oil crisis hit the country for real. It is a bit strange that the excessive oil consumption began at the same time, with the first signs from the drying Texas oil fields. Period of excessive oil consumption ended into 1981-82 recession. Recession was much more bigger and visible, than you can guess from statistics. US economical data from the time is twisted, beautified quite a lot. Some car factories for example were closed for almost a year. Recession was very visible, hurt a lot. In US allies, like Israel, the recession was bigger than in USA. 

At around 1990 IBM PC-based home computers came and started to conquer markets. All major manufacturers, winning brands came from USA. European manufacturers died, most Japanese declined. Sector grew with two digit numbers over ten years. For some strange reason, growth died at the same time, our Jack had enough from greedy and selfish IT jerks. Sector wide revenues fell almost 50% within few years.

In year 2000 USA was almost debt free country, with good employment rates. During George Bush Jr. US debt rose around 5 trillion USD.  During Barrack Obama's reign debt rose over $10 trillions. At the end of Obama's reign national debt was around $17 trillions. In fall 2012 USA run temporarily out of debt money. USA experienced widespread close down of the public services. Both Bush Jr and Obama had some difficulties in the renewal of their presidency. Both were near to become rare one-term presidents. 

EU countries do not have to report domestic debts in their national accounts, estimation is that EU countries accumulated debts are bigger than US debt. There are countries, which report €60 billion debts, with over €300 billion total.  Not known what happens after all domestic creditors are drained ... 

The thing in national debt is, that there isn't a way to avoid the payback. There will be a day, when national debt comes due. One way or another. Worst for the citizens are hyper inflation and national bankruptcy. Easiest for the citizens is growth of national economy. The growth in economy downgrades the share of national debt from tax-incomes. Tax incomes grow with economical growth, whilst down payments and debt remain the same as before. Unfortunately easiest for the citizens is hardest to gain ... outside talks, in real life. If you for example take $1 trillion debt for job creation, and it creates only $800 billion growth to your economy, you are making things worse. In western countries this has been the Sound of the time after 2009.

US Economies have been suffering from the long term negative trade balance. The value of imported goods is bigger than value of exported goods. USA is the biggest oil user and importer in the world. USA has the biggest coal reserves in the world. Oil from coal, with purchased R&D Power solutions, would have fixed this problem. For USA and many others. Sucker, sexual satisfaction and big headlines about spilling were much more cooler and important ... to some.

If 2002 war in Iraq cost app 4 trillions to USA it makes app 12 000 per capita. It is an addition to common taxes, and it takes years to collect the money. The war created new jobs and production, but both were born to military sector. After war was over, created jobs and production vanished from US economies. Only the debts and casualties were left. In 1990's US tax percent was still app 20%. After millennium it has risen to over 30%, near Europe's average tax percents. With a difference that in Europe schools and healthcare are usually paid from taxes.

During years 2006 - 2008 worldwide car sales dropped around 50%, in numbers it is from app $1 trillion to around $500 billions. Deep drop drove car manufactures into big financial difficulties. Biggest car manufacturer countries ( USA, Japan  and Germany ) suffered from the drop, too.

Although commercial space exploration benefits all nations, in the beginning USA and Russia would get advantage from their existing space science, technologies, materials and apparatuses. Project gives USA and Russia a chance to cash earlier investments to space and space science. A chance to convert investments to science into businesses and new job opportunities.  Reach the primary goal of science.

Space Lifts and Space Jets have 5 primary / developer countries : Britain-France, Germany, Russia and USA. 

If you do not know or remember Space City / Commercial Space Exploration is a counterpart project for Africa project. Africa project gave frames : tips, tools and techniques for the creation of the emerging markets. The difference to common production transfers is the creation of the domestic markets to the target countries. From the boosted domestic markets, companies ( domestic and foreign ) get new consumers to their products.

If you didn't know, the person who set the request, and wanted to wipe the hunger and poverty away from this world, was Jack's old friend, famous singer Madonna. "The most obvious hardly ever occurs to your mind", was Jack's response to the curious.

Since emerging markets drains western markets, western countries needed replacements for the lost production and job opportunities. Space City would have fixed this problem.

US people owns their country.

US people are still the wealthiest in the world. US people owns USA. Public funds, which collects money from US people, own all bigger US companies. In US business world, investors and families owns smaller companies, or then they are minority owners in some bigger company. USA is the only wealthy-western country in the world, without ( relatively ) big privately held companies.

Possible to say, that USA is another application from Mr. Lenin's ideology / dream. During the time Mr. Lenin lived, royals, nobles and families owned the world ( businesses and land ). He wanted to grant the ownership and freedom from few privileged to common people. Before revolution part of Russians were slaves ( Slavery was removed from Russian laws in 1861 ).

Politically USA is and USSR was a democracy with strong president. USA has two major parties, USSR had only one.  USSR missed pre-elections. People could vote, who ever they wish. In USA party members elects candidates for common elections.

Both USA and USSR were heavily money oriented nations. Socialism was the first money and ownership oriented ideology. Soviets and socialists are not that interested in profits ... exhausting their citizens with work. But money and work are important part of the society. Soviets for example planned their economies in 5 year periods.

- - - -

Big difference between USA and USSR is that Christianity was officially forbidden in Soviet Union. In Soviet opinion Christianity is a religion for slaves. It subdues common people, asks them  to live in poverty and misery ... It is a good tool for old-fashioned greedy capitalist, Christianity directs power and money to few, makes common people easier to rule, downgrades your paychecks, welfare, and so on.**

Christianity has also quite a many things, which emphasizes men's superiority against women. Starting from the story of Adam and Eve  ... and the Serpent. Socialist countries were the first, where women had a right to work, own wages and career ( for real ). It shows well in older movies and movies from the time. In older movies Soviet enemies and co-operatives are often women.

During the time Lenin banned Christianity, it was quite different from our times. At around year 1900 priests had a power to control people with their sin declarations.  They were much like our times doctors and some civil servants. All joyful things, like dancing, card games, etc. were sins. Fun, joy and laughter was forbidden from pious Christian. Nowadays drug companies corrupted pets try to control and restrict your activities with faulty health declarations.

In general levels, buyer buys a car,  he/she can afford to buy, keep and drive.


! The text above is based on scientific research, based on a dataBase about the worldwide economies 1200 - 2010 Regrettably often attempt of recovery dies before it begins.  Power keepers - politics and midgets - say that everything is fine, you are doing well. When so, recovery is never needed. On the other hand, an attempt to recover finances,  when you are doing well, has disastrous long term effects. Your power keepers are advised do things, which are "paid", when the times are better.

* The term cold war refers to a war like situation, where USA and USSR built weapons like they were in war. Although they weren't. The money you spend into guns is always wasted, you should never spend busloads of tax payers money into guns and military, without a very good reason, like unavoidable war. The cost of war in Iraq to USA was at least $4 trillions,  most from the warfare was financed with loans / debts. The debts are the key reason for the recent problems in US economies. USA was almost debt free before the millennium wars.

** The world has changed. Modern economical science - capitalism - says, that almost everything you do and sell are made for the common people ... people, who works in other companies and businesses. Therefore you should keep your staff rather happy and wealthy. But there are also very cold blooded things in the modern capitalism. In modern capitalism your paychecks are paid from the revenues. Companies for example do not take loans and hardly ever uses long term savings for covering the running costs : When times are bad, it is nowadays much more easier to lose your job than before. If your union manages to negotiate too big hikes for the average wages - company cannot pay the hikes from the revenues - victorious strikes and wage negotiations leads into negotiations about the bigger layoffs. When new ideology came into common practice, this strike-hike-layoff system was rather common. The new system makes it possible to replace firings with small downgrades in wages, during recent decade this chance has been used in many Euro countries ... usually as a replacement for government driven devaluation, which is impossible in Euro countries. In owner driven companies, everyone belong to payroll stuff. When so, usually both executives and workers can present savings ... cost cuts, with what you can reduce or avoid firings.

The new economical theories were developed from the very beginning of the businesses. When things were researched, it turned out that modern economies are too complicated for getting anything out from it. So the definitions for money, the way economies work, etc. were researched with a medieval blacksmith. His businesses were simple, blacksmiths made things for  farmers, armors for knights, etc. In return blacksmith always got something from his customers. After he started to get money from his customers, he could do an armor for a knight.  Use the money he got from the knight's armor for buying food from farmers ... possibly a pint of beer from local tavern.

Most from the  20th century each nation had gold reserves, whose value was equal to value of the printed banknotes and pressed coins. So that central bank can buy all notes and coins back to itself. After central bank and nation give up from this principle, it is possible to drive country near bankruptcy with currency speculations. Speculations are usually rather costly for the speculators. Very difficult to make money with falling currency or stock. When currency or stock falls, by default you buy the valuable with higher price than you can sell it later. Profit making always needs a hike to the  purchase price.

In principle central bank should adjust the amount of the available money so that it matches to the need. Need comes from work / money your nation does. Incorrect amount can boost inflation-deflation. Then it can downgrade-upgrade the currency's exchange ratio.

If central bank lends money with negative interest, and it sounds strange in your ears, you can be very sure, that it is sign of some sort of serious thing. In your economies or alternatively your power keepers and their advisors heads.