There Aren’t Enough Millionaires: The rich can’t fund our deficits.

Consumption is driven by the middle class in any First World economy.

And during the Bush administration, at which time the rich were taxed at historic lows while the disparity in income between the rich and everyone else was at historic highs, how, exactly, did all that "investment" help the dwindling middle class, which is the consumption engine and backbone of a sustainable First World economy? Make no mistake: the golden eggs are laid by a thriving middle class, which Right Wing fiscal and regulatory policy has all but obliterated.

 

This is true.

Most of the old money doesn't consume in the manner that Robin Leach's "Lifestyle of the rich and famous" blow money.

They own all the toys they need. They buy to replace just like the middle class, but their wealth goes into investments that don't actually stimulate the economy as much as people think.

Buying treasuries does what for the economy?

Investing in emerging markets does what for America?

Buying farmland helps America how?

 

Well guys, everybody is right to some degree. I have been raging against the banks relentlessly, regardless of topic. That does need to change, but saying what's done is done doesn't quite get it. While the banks have recovered, there are millions still suffering the aftermath of the banking debacle. Somebody has to speak up for the working stiff on this site, and I guess that's me.
I will make an extra effort to throttle back my rants against the banking machine, and stay on topic. Don't expect me to forgive and forget though. Far as I'm concerned it's a bare knuckle fight to the death when it comes to the crimes they committed.

 

You're right, it's time to lay off the beleaguered banks. Here's Krugman's column on the matter, from yesterday.

http://www.nytimes.com/2011/03/14/opinion/14krugman.html?_r=1&partner=rssnyt&emc=rss

 

That was some fine reading. Thank you.

 

How bout jobs, and the investment capital needed to start new businesses?

 

That's what banks are for. And they don't need to be privately owned to do it.

 

That's only part of the answer, assuming you are referring to debt financing. However, there are also investment banks, which don't need to be privately owned, and venture capital firms to help fund the equity side. For some reason, Right Wingsters seem to believe that a couple of percentage points in higher taxes for the highest brackets will suddenly derail the entire gravy train. Yet they continue to be blind to the elephant in the room:

 

Speaking of banks, who ought to be insuring depositers funds?
The Fed maybe? Other businesses self insure.

 

And where do you suppose the banks get the money to lend from?