8.2. REFERENCES 51
labor areas, who used to go to deficit labor areas for employment, would face more hardships.
is would aggravate the unemployment problem in surplus labor areas. Countries and regions
with surplus production and deficit labor usually suffer fewer hardships during a depression.
Taking the above things into consideration, one can understand why the U.S. experienced
the Great Depression of 1929 due to huge wage economic disparity. is also explains why it has
becomes essential to establish a free-market enterprise system that would minimize the economic
disparity with minimal government intervention.
Mass-capitalism-based free-market reforms envision the sustainability of huge capital in-
vestments for a transition to 450mm diameter silicon wafers. As explained above, it can be ob-
served that an economic depression might occur when money that is in the possession of individ-
uals stops flowing. Some of the major players in the global semiconductor business are concerned
that their investments for transitioning to 450 mm diameter wafers would not give any significant
returns. is could turn out to be one of the causes for money to remain inert or underutilized in
this capital-intensive business.
As a result of the above policies, money in the economy would become immobile or in-
ert; consequently, there would be no investment, no production, no income and hence further
reduction in consumer purchasing power. e situation could become so dangerous that there
would be very few buyers to buy new electronic goods. is macroeconomic analysis explains
why macroeconomic reforms have become critical for transitioning to 450 mm diameter silicon
wafers to ensure that money does not remain inert and keeps circulating in the economy so that
consumer demand for the latest and greatest electronic products keeps rising. Without the above
proposed macroeconomic reforms, progress of Moore’s Law seems impossible and chances of the
U.S. economy transitioning from its great recession to an economic depression seems inevitable.
When mass-capitalism-based macroeconomic reforms enable a transition to 450 mm diameter
wafers, then consumer purchasing power and consumer spending in the economy will grow. is
would enable the United States to come out of its third economic depression, which started in late
2007, as explained in Chapter 4, “Impacts of Semiconductor Business Models on Sustainability.”
8.2 REFERENCES
[1] Mulay, A., “Macroeconomics of 450 mm Wafers,” Semi. org. July 31, 2014. http://ww
w.semi.org/en/node/50856
[2] Mulay, Apek, Mass Capitalism: A Blueprint for Economic Revival, Book Publishers Net-
work, Bothell, WA, 2014.
[3] Mulay, Apek, “e Causes of Economic Depressions,” LinkedIn, May 6, 2014.
https://www.linkedin.com/pulse/20140506053708--11893233-the-causes-
of-economic-depressions
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