Biden to Urge Federal Reserve to Take on Racial Wealth Gap

Discussion in 'Economics' started by Arnie, Jul 28, 2020.

  1. Cuddles

    Cuddles

    You're right, SLE will never accumulate wealth with that mindset.
     
    #151     Aug 11, 2020
  2. RGLD

    RGLD

    I think George Carlin had the right idea. He gave up on humanity, America is bought and paid for a long time ago. But his own personal developments for the future, he was very optimistic.
     
    #152     Aug 12, 2020
  3. LOL, that's an easy one. American car industry (ex Tesla). It's a zombie industry taken to the extreme by the government support.

    The Fed is already "printing money" (low interest rates, asset purchases etc) and it benefits the current asset owners. It's one of the issues with the firehose approach that the central banks have taken globally, all the water ends up in a ditch. Instead (to continue the analogy), they need to figure out an approach that will irrigate the whole field. While there seems to be an unhealthy fixation on the MMT-style monetary policy (both from the left and, considering the recent growth of the US debt to GDP, from the right) there are fairly easy, albeit painful fixes.
     
    #153     Aug 12, 2020
    eternaldelight likes this.
  4. RGLD

    RGLD

    The context you gave is they're comfortable enough as an asset owner to not innovate. They don't innovate because they're incompetent, not cause they feel safe. The Japanese just made cheaper, more reliable cars overseas while they circled the drain with ideas that didn't work.

    If you're willing to look the other way, our tech industry is always innovativing.
     
    Last edited: Aug 12, 2020
    #154     Aug 12, 2020
  5. In the world without government bailouts, they would innovate or die (and in death give their spot to someone more innovative and more efficient). Instead, they trudge along at a leisurely pace because of the implicit government guarantee. I certainly would call this a "comfortable" position to be in. After some number of bailouts, they have no interest and no skill to innovate (lost good executives, lost good engineers a.k.a. they are incompetent, as you said), but the primary reason is that there is no pressure on them to do anything at all, as their survival is all but guaranteed.
     
    #155     Aug 12, 2020
    KCalhoun and eternaldelight like this.
  6. RGLD

    RGLD

    Well for what it's worth, Chrysler is no longer around. Yes I know they didn't go bankrupt like they should but it's a decision they made, not with government help. Tesla can put an end to them by convincing the government that a US auto maker can be competitive and innovative - and ones that are not should be allowed to fail.

    Again I'm going to state the problems we have are cultural more than anything. We don't have any smart people in auto manufacturing because that's an old industry that had geniuses in the past when autos were the greatest gadgets. We still have smart people but they all decided to set their sights on the technology, medical and finance sectors. Which would explain why our tech and medical industry is the best no other country compares. Top 10 billionaires are in tech, that should paint a pretty clear picture of where our innovation went. Nothing is inspiring about auto engineering that attracts young talent to go into the industry. That is a cultural problem.
     
    Last edited: Aug 12, 2020
    #156     Aug 12, 2020
    KCalhoun likes this.
  7. piezoe

    piezoe

    This post is full of valuable insight. Thanks.
     
    #157     Aug 12, 2020
    Same Lazy Element likes this.
  8. Cuddles

    Cuddles

    now, now, no need to be patronizing.
     
    #158     Aug 12, 2020
  9. piezoe

    piezoe

    Well you aren't terribly wrong as far as the number of countries that compare, but a few do. Both Cuba and Costa Rico, for example, compare very closely with the US in "overall health system performance. " "Best" is not quite the right adjective however.
     
    #159     Aug 13, 2020
  10. piezoe

    piezoe

    ha ha ha. I have never been any good at lying. Always get caught it seems.
     
    #160     Aug 13, 2020