More ammo for the movement happening in out towns and cities
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After the recent articles I posted about wage inequalities which showed the complex nature and the complex creation of such inequalities, I would think you would drop the “its all the fault of the rich” meme.
What the article describes is an economy in a depression. Depressions are hard on the labor force, while those with capital, who make money from money, can continue to create wealth.
Cronk, do you supposed that we tax capital gains at 100%?
How about just taxing them as income because that is what they are?
Clearly none of this is the fault of business that has chosen to maximize profits at the expense of everything else, including the long term health of the economy.
TJWP, taxing capital gains as income will not fix the income inequality gap. That is my point. You all are being tricked. This is a ruse to have you take your collective eyes off the ball.
Who sets the rules that businesses must follow? Look at other countries with income inequalities similar to that of the U.S. What you’ll see is that most of those countries have at best, dysfunctional gov’t, and at worst, down right corrupt. What does that tell you about our gov’t?
@twjp. the human race booms then busts. its the life cycle that has fucked it all up. ie. pensions and other guaranteed liabilties. the plebs live too long now. there is no way to suppport a system where everyone lives to 90 and gets unquenchable healthcare before they finally fucking die. the system is broken.
You are completely off base here. You can either subscribe to Keynes’ “animal spirits” theory or you could look at Austrian economics which models how low interest rates lead to allocation of capital, which leads to booms then bust. Does 2000-2008 sound familiar? Or perhaps the bubble in sovereign debt, where did that come too, why was risk not managed. Cheap capital explains all of these things, but lets go on thinking its human nature so we don’t have to fix the problems.
its all human nature. that is what we are. the old are the ball and chain of the current bad math society. they used to die young. cant work for 30 to pay for 30. when they dont die. liabilities. pensions soc sec healthcare. just simple math.
My father is a 90 year old Australian and he agrees with Voodoo.
the austrians are hard to take seriously when they harp on and on about points like
1. if china won’t buy our bonds, hyperinflation and end of days (plain silly, will never happen)
2. deflation is good
3. the US is going to become like greece. (hello, we can’t default, our bond rates go LOWER the higher our debt gets)
4. they clearly don’t understand what has caused hyperinflation in the past
I don’t argue that interest rates should be so low. But, fwiw, over the long run, low interst rates are DEFLATIONARY. Because they result in LESS creation of currency (which is, btw, the federal debt, not QE or anything like that. QE creates nothing, prints nothing. Its the deficit that creates more dollars).
And they completely fail to acknowledge the economic potency of a consumption favoring economy.
They make some good points, but the core themes they seem to favor are just plainly out of touch with reality.
their greatest skill is marketing! they have the whole frigging blogosphere freaking out and preaching their gospel
First of all, Austrian is a branch of economics, and they do actually have quite interesting explanations for inflation and the causes. I believe some popular models use a measure that is similar to the M2 money supply.
I think it is quite obvious you are quite confused with regards to your definition of deflationary verses inflationary, as well as what deficits are. Deficits are borrowing from the future, interest rates are the risk free rate of capital that is used for allocation calculations. To be clear, deflation and de-leveraging are not synonymous.
With regards to your argument on US debt, you should Wikipedia the definition of a reserve currency. China isn’t buying US bonds because they want to, they are doing it because there is no viable alternative for international trade ATM. Look no further than OPEC cutting output as to the status of the US dollar. Why exchange valuable oil, which you store for free for worthless US dollars which you don’t need right now.
dude, man, I know this seems like a sort of non-intelligent reply and all
but its because you haven’t read the link above and grasped even the simplest concepts of it
“deficits”, as in the united states government form of it, are, LITERALLY, the creation of new dollars.
“deficits”, as in the united states government form of it, are, LITEARLLY, the creation of new capacity to save (in dollars) for the US citizens and the rest of the world.
“deficits” ARE NOT, like you running up credit card debt, they don’t steal from the future any more than me taking a leak steals from my children.
Its amazing. More amazing to me than all but one or two things i’ve witnessed in my time on this earth. Sometimes I feel like a vampire (even though I am thoroughly mortal), from Buffy, relating their bedazzled amazement at witnessing centuries of humans being human.
But, damn. Watching the world attempt to self destruct over the ignance of and refusal to acknowledge (over political/emotional reasons) a generally obvious set of economic facts is…
honestly, one of the most memorable experiences. I wish I had fangs so I could see how this all played out into eternity. If I did, I could write an essay tonight and wager all things with everybody over whether, in the complete fullness of time, I was proven right. Adn I would be. But as I can only live another 50 years or so, I wager people will still be this clueless when I pass on.
I hope, as a consolation prize, my grandkids are as good lookin as me. lol
tjwp. sorry dude. got your name wrong.