How does that even work?
If labor has no income to spend on goods and services. where is the return on capital coming from?
Isn't this halting velocity of money, thereby making it useless? Can someone smarter explain this to me.
Some goods and services are sold to another business, not a consumer. Right now, these "B2B" sales represent about 30% of sales volume in the economy, but there is probably no impediment to that number rising to 90%.
That's just the thing though: if we transition to a reality in which 90% or 99% of economic activity does not involve consumers, governments will adapt by taxing consumers (i.e., employees) less and investors and corporations more. It's also possible that corporations will escape the governmental oversight and control that they are currently under, which means governments of the world would shrink because they have to survive on taxes on the 1% of the economy that remains under the control of employees and consumers.
I certainly want most of the economy to serve people, but there is nothing contradictory or impossible about the possibility that 99% of it is a competition between ultra-wealthy corporations.
I think the future is less a utopia where all our needs are met and more like what happens in the third world. Where most people are desperate and impoverished save for whoever owns the underlying mineral rights and can afford to squeeze them for profit. The incentives of business all point to this outcome and there is plenty of precedent already. Zero precedent for a utopia.