How "Trickle-Down" Really Works

Discussion in 'Economics & Trade' started by Cigar, Nov 27, 2017.

  1. a better world

    a better world Well-Known Member

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    Quite so.

    Apparently Karl Marx had to force himself to study economics (for c.10 years) at a London school, to prepare his critique of the economic life of the early industrial revolution, with its egregious abuses of workers rights (wages and conditions).

    Now in this post-industrial age (with AI and IT advancing apace) the time has come for economists to design the new global economy which can - for the first time in history - guarantee above poverty level participation in the economy by all citizens of working age. (The resources + technology + knowhow exist, so it can be done).

    Then - apart from eliminating poverty and all its associated ills - we won't have leaders engaging in the sorts of hissy fits we have witnessed lately at the G7 meeting.
     
    Last edited: Jun 12, 2018
  2. LafayetteBis

    LafayetteBis Well-Known Member Past Donor

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    POVERTY-LEVEL UNACCEPTABLE!

    Eradicating poverty in any nation should be its principle goal. There is no reason whatsoever for a modern, educated economy to accept a Poverty Level of beyond 3% of the total population. And, in America, ours is at 14%!!! That means nearly 40 million men, women and children must live below the Poverty Threshold (which, for a family of four, is $25K income per year).

    Which is also, btw, the combined populations of California and Maryland. The population of two Americans states is living TODAY below the poverty-level whilst Donald Dork is proud to yell at all and sundry how fine a job he's doing with an unemployment rate of ONLY 3.9%.

    For which he is not in the least responsible because the country, all by itself, started creating jobs during Obama's last two years (2014/15). See Employment-to-Population Ratio history infographic from the BLS here.

    And, of course, don't expect Donald Dork to give a damn. He could not recognize abject poverty if it bit him on the arse ...

     
    Last edited: Jun 13, 2018
  3. LafayetteBis

    LafayetteBis Well-Known Member Past Donor

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    So, pray tell, what in heaven's name possessed the American people to vote for Donald Dork? Yes, he lost the election, and a manipulation of the Electoral College (which is not based upon the popular-vote outcome) elected the Dork as PotUS.

    Who calls that a "democracy"? Then they haven't the slightest notion of the word's meaning. Since the dawn of the democratic election, ONLY THE POPULAR-VOTE DETERMINES THE HEAD OF STATE. (The singular difference between the US and other countries being that in the latter heads-of-state are the leadership of the parliamentary majority since most have no Senate.)
     
    Last edited: Jun 13, 2018
  4. LafayetteBis

    LafayetteBis Well-Known Member Past Donor

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    Like most Replicants Reagan was for Trickle-up Economics. He made Net-of Tax Income not only Trickle-up but Rush-up. Which triggered the run-up in the Gini Coefficient (that measures national Income Disparity). See the inordinately high Gini Coefficients of both China & the US here.

    Note that the US today has the dubious privilege of being at the same level as China that also has a handful of extremely rich-people and a growing middle-class; but still a great many also below the Poverty Threshold.
     
    Last edited: Jun 13, 2018
  5. LafayetteBis

    LafayetteBis Well-Known Member Past Donor

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    THE TWIT TWEETS

    Given this above, it is a shame that the hissy-fit was on the part of Donald Dork. Only Japan abstained from accepting the final-report of the G7-meeting, and the Dork subsequently renounced it.

    He's pretty good at hissy-fits that he tweets with wild abandon to the world waiting breathlessly for each one ...
     
    Last edited: Jun 13, 2018
  6. squidward

    squidward Well-Known Member

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    So who forced the populace to run up the prices of their homes with credit, while simultaneously spending their equity on luxuries ?
     
  7. LafayetteBis

    LafayetteBis Well-Known Member Past Donor

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    It's called economics, where nobody forces anybody to do anything. But inducements prevail.

    If the populace wants to run feverishly at building wealth by buying/selling property in a price inflationary period, then who should stop them? The bubble will burst and a good many people will lose money when it does. That sort of lesson is very rarely lost on humans.

    In fact, there is a way to dampen the spiral upwards of inflationary markets. It consists of making the transfer-process laden with regulatory processes. Like third-party expertise of the house to assure there is no structural faults. The most effective is raising interest rates, which makes it more difficult for people to purchase property.

    All should be tried. There is no sense toa property-market spiraling out of control simply because buyer-frenzy has overtaken a population ...
     
  8. squidward

    squidward Well-Known Member

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    Tell her
     
  9. dairyair

    dairyair Well-Known Member

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    The Jones'?
     
  10. squidward

    squidward Well-Known Member

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    So the people caused their own problems.
    Still scratching their dicks wondering why everyone can't get rich together running up the price of their homes on debt
     
  11. Longshot

    Longshot Well-Known Member

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    By what mechanism?
     
  12. LafayetteBis

    LafayetteBis Well-Known Member Past Donor

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    Her who?
     
  13. james M

    james M Banned

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    by Fed maintaining liquidity during housing crisis to prevent contagion from collapsing world financial system causing
    rerun of Great Depression and possibly World War. Bernanke promised Friedman that we would "never let it happen again".
     
  14. james M

    james M Banned

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    Not two guys, millions of capitalists who get rich only when, thanks to the glories of Republican capitalism, their great inventions like cancer cures and Iphones trickle down to everyone. Now do you understand?
     
  15. Longshot

    Longshot Well-Known Member

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    By what mechanism would the contagion among all banks and financial institutions have completely shut down the world's economy?
     
  16. LafayetteBis

    LafayetteBis Well-Known Member Past Donor

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    Who who?

    Do you think there is one person or persons responsible for a "binge".

    Whatever the outcome, and it is usually a "bust", the consequence is for those who participate. Trying to make a quick-buck, because the "buck" becomes then central-point of our lives. They evidently think money can buy everything. All it buys is "things".

    Money aint everything. We just "think" it is because of we make it central to our lifestyles. There are plenty of people happy and content with their lives ... and their Total Net Value has nothing to do with that contentment.

    Happiness in not a megabuck ... it's contentment with our station in life and not measured by the amount in our bank-account. That contentment can be achieved with very little money, in fact. But for that to happen, one needs other "values". That is, a values that are not monetary ...
     
    Last edited: Jun 13, 2018
  17. james M

    james M Banned

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    you have leaned 28 times now that is wrong. Since Plato only the best qualified were supposed to vote or do brain surgery. The fault with the American system is that there are no qualifications required for voting. Thus, you have Russians and 30 second TV commercials manipulating fools to vote in complete ignorance. Would any human activity succeed if only ignorant fools participated? Only twisted liberals think the dumber you are the more you should vote.
     
  18. james M

    james M Banned

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    100% naive, assumes liberal fool soviet bureaucrats knows when there is frenzy and how to regulate it. In fact capitalism is best way to regulate economy since it has 333 million regulations on the jobs 24/7. Do you understand now?
     
  19. james M

    james M Banned

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    typical old world lazy French wine and cheese stone age attitude. None of the greatest contributors in human history
    were content where they were born. Thank God!!
     
    Robert likes this.
  20. james M

    james M Banned

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    all were interconnected so when one was in trouble ( think Lehman & Bear Stearns) all their counterparties in 100's of other companies got worried and wanted their funds back.
     
  21. james M

    james M Banned

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    in part but govt was main problem. Its involvement was massive(eg 132 programs to get people into homes Republican free market said they could not afford) and thus distorted prices signals from the market making huge mistakes more and more likely.
     
  22. james M

    james M Banned

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    more importantly, who forced the govt to tell them it would always print enough money to make prices go up and guarantee the mortgages through Fan/Fred.
     
  23. james M

    james M Banned

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    thanks to Republican capitalism China just ushered 800 million into the middle class and thus 800 million out of the subsistence starve to death poverty class. It is the greatest record and most obvious record in all of human history and yet a libcommie will perfectly misunderstand it. Go figure.
     
  24. james M

    james M Banned

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    in a free country income goes to those who cure cancer and invent Iphone not where presidents want. Econ 101.
     
  25. Reiver

    Reiver Well-Known Member

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    Strange comment, given new cancer treatments are driven by government and charitable research (and pharmaceuticals increasingly fail to maintain innovation expectations)
     

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