Changing demand in the economic model. Right now from what I can tell, once a pop type meets 100% of their luxury needs for something, they stop demanding and start saving. The problem I notice is that certain populations end up with HUGE savings, they never dip into to spend. In reality, I think POPs should have unlimited demand for luxury goods and a fixed income percentage that they try to save if their basic and intermediary needs are met first. After I meet my amount of desired savings, I would go back to consuming more of luxury goods, because I can afford it. Capitalists would want to save the most in theory.
For one capitalist:
1st I start making income. I spend it on basic needs and intermediate needs. Once those are 100% satisfied I start consuming luxury goods. Once my luxury goods are 100% fulfilled, I start saving a percentage of my income. Once I am saving that percentage of my income, and i STILL have income, I go back to demanding luxury goods... In this way, I think you would avoid the problem of excess supply for certain goods and it would reflect the reality that my economy would shift over time from producing a lot of basic widgets, to producing fewer basic widgets (as I become more efficient due to technology) and more of my economy moving over to the production of luxury goods and specific services.
For one capitalist:
1st I start making income. I spend it on basic needs and intermediate needs. Once those are 100% satisfied I start consuming luxury goods. Once my luxury goods are 100% fulfilled, I start saving a percentage of my income. Once I am saving that percentage of my income, and i STILL have income, I go back to demanding luxury goods... In this way, I think you would avoid the problem of excess supply for certain goods and it would reflect the reality that my economy would shift over time from producing a lot of basic widgets, to producing fewer basic widgets (as I become more efficient due to technology) and more of my economy moving over to the production of luxury goods and specific services.