Wealth Should Trickle Up, Not Down

Discussion in 'Economics' started by Stockolio, Jul 27, 2019.

  1. dozu888

    dozu888

    @Stockolio are you really still holding puts lol.... no wonder all the doom posts lol.

    gotta ride the Trump train - you will have then have the correct bias.
     
    #21     Jul 27, 2019
  2. jys78

    jys78

    Some truth here.

    The problem is that fundamental human nature is to judge yourself in comparison to others. So long as there is ANY inequality, there will be a spectrum which will cause problems.

    Consider: the "poor" today (say bottom 20%) live a far better life by almost any measure - health, travel, entertainment options, etc. - than royalty of just a couple hundred years ago. Short of severe mental illness/addiction, what does being poor in North America actually mean? Having only 1 flat screen TV? Your smart phone is more than a year old? lol.

    However the social issues will persist regardless of absolute reality.
     
    #22     Jul 27, 2019
    LS1Z28 and henry76 like this.
  3. bone

    bone

    Most Economists I’ve read seem to ignore the law of unintended consequences - Pettis included.
     
    #23     Jul 27, 2019
  4. is it necessary to make caricatures...
     
    #24     Jul 28, 2019
  5. ironchef

    ironchef

    Your problem sir is you equate savers with rich. In reality, as individuals, it is not how much you make but how much you save that matters in the long run. Many immigrants who came from other countries amassed a small fortune because they had been through hardships at their homeland and knew how to spend less than they made. He might not be an immigrant but the story is the same:

    https://www.fool.com/investing/gene...janitor-amass-8-million-the-same-way-you.aspx
     
    #25     Jul 28, 2019
    tommcginnis likes this.
  6. MKTrader

    MKTrader

    In some cases....absolutely.
     
    #26     Jul 28, 2019
  7. henry76

    henry76

    Often made the same argument myself , paraphrasing Marks , whichever way you make the cake being on the bottom is shit.
     
    #27     Jul 28, 2019
    jys78 likes this.
  8. SunTrader

    SunTrader

    Not sure I follow you when you say "fundamental human nature is to judge yourself in comparison to others" and then do just that, comparing the poor of today with royalty of the past?

    I'm pretty sure most people understand income level, not incidentals, is proper gauge.
    And unlike The Fed and their nonsense 2% inflation rate, declining purchasing power and pitiful wage growth has meant more falling into the poor category.
     
    #28     Jul 28, 2019
  9. henry76

    henry76

    You missed the point , have a think .
     
    #29     Jul 28, 2019
    jys78 likes this.
  10. tommcginnis

    tommcginnis

    Wrong on both counts.
    1) Normalized U.S. debt-to-GDP has grown from 100% post-Crisis (which means deficit=GDPgrowth) to 105% since 2016 (which means deficit < GDPgrowth).
    2) The FED is independent and does not take its marching orders from Treasury or the White House. As well, current rates are *carry* costs, and do not portend well to Payoff. Should a global crisis hit, and the U.S. dollar skyrocket through no action of the FED, our payoff costs would come at a huge cost of goods and services, which would either be given away for lower nominal-dollar values, or be idled entirely, dragging the U.S. into the fray more than we already are.

    Borrowing is a use of credit. Credit = Debt + time. Credit *eventually* must be repayed. "MMT" be damned.
     
    #30     Jul 28, 2019