The most useless organization in America: The US Congress

Discussion in 'Political Opinions & Beliefs' started by AmericanNationalist, Mar 2, 2021.

  1. Quantum Nerd

    Quantum Nerd Well-Known Member

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    Money has to both trickle up and down at the same time. This cycle is measured by the money velocity:

    [​IMG]
    Now, you notice how money velocity has been decreasing since the late 90s, which suppresses GDP. Guess why this is the case?
     
  2. AmericanNationalist

    AmericanNationalist Well-Known Member

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    Because there's more consumers, then there are investors. When you are a consumer, your money directly goes to the people who are selling goods(this in of itself isn't rocket science.). You'd think Democrats would've learned this by now as you can see the recessions from 1960-1980.

    No super huge tax, is going to keep consumer choices from being smarter with their money. And people in general. That's why there's a boon on the internet about investing, people are finally catching on: Stop using your money to make other people rich.

    What causes a recession, essentially is when the prices of goods are higher than their affordable demand. The richer we all are(not just the top 1%) the better. Democrats for some crazy reason, think the solution is to drag everyone else down to the middle instead of raising the middle up.
     
  3. joesnagg

    joesnagg Banned

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    :applause::applause::applause::applause:
     
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  4. Quantum Nerd

    Quantum Nerd Well-Known Member

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    It's because we have been in a demand-limited economic environment for decades, caused by supply side policies. Nobel laureate Stiglitz has written about it.

    "There are different channels through which inequality harms the economy. First, inequality leads to weak aggregate demand. The reason is easy to understand: those at the bottom spend a larger fraction of their income than those at the top.42 The problem may be compounded by monetary authorities’ flawed responses to this weak demand. By lowering interest rates and relaxing 12 regulations monetary policy too easily gives rise to an asset bubble, the bursting of which leads in turn to recession.43"

    https://www8.gsb.columbia.edu/faculty/jstiglitz/sites/jstiglitz/files/Inequality and Economic Growth.pdf

    Weak aggregate demand means that people don't have enough money to buy products, in return, there is no reason for companies to invest, if there is weak demand for their products. Therefore, investment goes into speculative vehicles, rather than into capital goods and innovation. We've seen this also through the lensd of ultra-low interest rates. Why is there no return on the money? Because there are too many investors chasing too few debtors. In other words, the money is sitting at the top, but it is not trickling down, because investing in growth of companies makes no sense when aggregate demand is limited. In turn the money velocity is reduced and everyone is worse off, those at the bottom AND at the top.
     
    Last edited: Mar 2, 2021
  5. AmericanNationalist

    AmericanNationalist Well-Known Member

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    It makes even less sense when there's an overt focus on corporations and on business owners, rather than on the greater economic market force(the consumer.). If those at the bottom spent their money as an investor, rather than as just a consumer then we would see higher economic climbing by all sectors of the economy and the economy would flow.

    We all recognize the problem essentially as too much money in too few hands. The difference lies in our solution to the problem. One thinks that by setting a 'standard' of mediocrity, that'll make it better(I disagree with this approach.) My approach is to have those at the bottom continue to rise up further.
     
  6. bringiton

    bringiton Well-Known Member

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    Speaking of jokes, what is the opposite of Congress?
     

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