I only read the first paragraph. I agree with at least that much of it.
I agree 100% about the government incentivizing cap gains income over regular income, but to say that wealth inequality in our country isn't necessarily a problem is asinine. You've made it clear you're not a fan of giving a man a fish since it only feeds him for a day (a legitimate argument), but you conveniently ignored the second half of the saying. Are you trying to say that not giving a man a fish is going to automatically teach him how to fish, or are you saying we should tax the rich more but invest in education rather than food stamps? If it's the latter, I agree.
I also don't think giving Lockheed-Martin $40B a year in government contracts for tanks that sit in a military parking lot is teaching it how to fish, but people who argue austerity never seem to mind that for whatever reason.
I only read the first paragraph. I agree with at least that much of it.
It is closely wrapped up in the marginal propensity to spend and the velocity of money.
http://en.wikipedia.org/wiki/Margina...ity_to_consume
http://en.wikipedia.org/wiki/Velocity_of_money
Investments, sitting in investment accounts don't do much for GDP or growth.
Give people at the lower end of the spectrum more money, and they tend to spend it. Once they spend it, it moves around from merchant, to vendor, to worker, etc.
The answer to your question is:
Sort of. The question is, given the research, not very applicable to what they were doing, as there is no specific direct comparison made.
"Broods of failure"
Funny way to talk about children.
What is your solution for the children of this "filth"?
Ignore them? Let them starve because their parents are bad people?
The costs of poverty weigh heavily against ignoring them:
Are Food Insecurity’s Health Impacts Underestimated in the U.S. Population? Marginal Food Insecurity Also Predicts Adverse Health Outcomes in U.S. Children and Mothers.
January 1, 2013Advances in Nutrition
WIC Participation and Attenuation of Stress-Related Child Health Risks of Household Food Insecurity and Caregiver Depressive Symptoms
May 1, 2012Archives of Pediatrics & Adolescent Medicine
http://www.childrenshealthwatch.org/...peer-articles/
You tell me what your solution is, and maybe we can see if we can find agreement. I am always open to better public policy.
Rereading the article, there is no support for the claim that income inequality stalls economic growth. At best, the article suggests there is a correlation (and not causation) between economic inequality and hiccups in economic growth. Considering the fact that the study concerned emerging third world economies and considering the fact that the article concedes that other factors (mainly political economy) also affect growth, I have a hard time believing inequality of wealth is a cause of slow/no growth as opposed to being a symptom of an underlying political social dynamic.
I see what you're trying to argue, but I think that wiki articles defining economic terms do not support the claims you're trying to make.
As it stands, I still don't see the data or support for the claim that the amount of wealth inequality in the US is problematic.
them. Let them starve. Social Darwinism is my solution.
Still waiting for an answer ...
This. Not all living things are sacred. Not our fault these poor people out kids left and right.
The party that wants to restrict abortion can't stand on the social darwinism platform tbh.
Don't think anyone is talking about political parties. I know I'm not.
It is true that progressives are very generous with OPM.
By discussing views one does have a tendency to align with a particular political party.
Not on every detail, but in general.
everything is politics, so you're not in the conversation, and too ing stupid to know it.
The personal is the political =|= the republican or Democratic Party. Only you would be too ing stupid to know the difference.
Sew it all together.
GDP is measured by economic activity.
I get a dollar, I spend it on a taco, the taco guy uses that to buy tortillas, the grocery store uses that to pay the electricity, the electric company pays its workers who buy tacos... etc.
That one dollar given to me, has in the course of a year, become purchased goods and services for each person it passes through. If all of the above transactions took place in a year, that would be five dollars worth of GDP.
Combine that with the fact that poorer people have a higher propensity to spend, for a variety of reasons that have nothing to do with drugs or alcohol, and you have the mechanism that explains the correlation noted in the study.
I provided the wiki articles to provide some conceptual framework from which to view this.
Ah, the immoral, irrational, un-American solution.
You are too ignorant, and too evil to argue with.
Now I remember why I thought you were a neo-nazi. There is little doubt in my mind, you would have been goosestepping with that lot if you were alive in Europe in the 1940s.
I'm going to go ahead and put you on the ignore list, with mouses trolls. Please off.
We're talking past each other.
I don't disagree with the scenario you've laid out -- I think it makes intuitive sense. However, I don't think that your anecdote substantiates the claim that wealth inequality is bad for the economy. That's because you're assuming that rich people won't spend their money in the same way that poor people would. Isn't that why you think redistribution is a good thing for economic growth: take money from rich hoarders to poor spenders and poof, more money is being cycled through the economy.
I don't see any proof for that assumption (if it is in fact your assumption). Rich people spend money too -- they just spend it on like cars and yachts and jets. And poor people save money. I don't think overarching generalizations like "poor people tend to spend" are productive because they're gross generalizations without much, if any, proof.
And all of this has nothing to do with the article -- which is the only piece of evidence for your claim. I still don't see the relevance of wealth disparity in third world economies to the US.
Again, who's morals? Your morals are not universal, and your sanctimonious soapboxing doesn't give you a monopoly on determining what is right and what is wrong.
The fact that you resort to "but but but you're a nazi . . ." when someone questions your morals just goes to show how weak minded and feeble you truly are.
Lol threatening me with your ignore list. Like I give a ing . Is that supposed to be a threat? Should I feel bad about that? Why the do I care if some mediocre accountant reads I post on the internet when I'm bored?
This is interesting.
So is there a list of basic goods and services that are thought to be "recycled" in more steps thus possibly having more of an impact on the economy?
And it seems to me that the more diversified your consumers are, the likely hood of stimulating many sectors of the economy vs. stimulating yacht building and slip rental. But this may be an incorrect assumption.
Last edited by pgardn; 11-13-2013 at 10:50 AM.
There are some types of behavior that arise from morals that aid in societies functioning in a more harmonious manner.
The ole
dont steal
dont kill
dont screw your neighbors wife
just basic behaviors that help people get along... Heard of these?
It isn't the goods and services that are recycled, it is the money itself that cycles through the system.
Each dollar that is paid each year becomes part of the GDP count.
The money that sits in static investments of the hyperwealthy sits there, unmoving. That is one of the reasons/arguments used to support the assertion that wealth concentration drags economic growth.
sociopath I'm-an-island, Rugged Individual VY said: "substantiates the claim that wealth inequality is bad for the economy."
http://www.huffingtonpost.com/2011/1...n_1099135.html
http://www.businessinsider.com/the-n...ociety-2011-11
http://www.usnews.com/opinion/blogs/...tens-us-growth
http://www.nytimes.com/2012/03/21/bu...cene.html?_r=0
http://www.pbs.org/newshour/extra/da...me-inequality/
http://www.businessweek.com/magazine...-11162011.html
The French Revolution "aux barricades les enfants de la liberte!" was the 99% KILLING the 1% represented by the amalgam of the Royalty/landed class with the corrupt, wealthy Catholic Church.
Yes. Sorry, I get that.
So are there basic goods and services whose associated dollars are recycled through more steps?
Do economists have some list of basic items?
My morals are based on reason and empathy.
I don't wish children to starve to death because their parents are horrible people. I empathize with them in that regard.
Using simple reasoning, I can tell you that capital comes in all forms, including human capital.
Throwing away the children of poor people is wasting capital that can be developed. It is akin to simply cutting down a forest and leaving it to rot. Invest in the capability to convert that forest into wood and finished products and you are better off economically.
Similar arguments can be made for investing in the children of poor people. You can either be an evil who wants to see these children starve to death, or you can realize that they are simply undeveloped capital.
I have both reason and empathy guiding that choice. The moral thing is to help them.
As for social darwinism, I don't have to bother rebutting it. It is held as generally logically flawed and immoral, and others have already done so.
I have a degree in German, I have seen German propaganda films in their original language, and have read Mein Kampf in all its icky, boring ignobleness. I have read a couple of dozen books in English and German on the period.
I believe I can identify a Nazi when I see one, and vy65's statements fall right in line with Nazi propaganda, chief among them is to first dehumanize that which you hate. It makes it easier to shove people into ovens when you don't think they are people.
Last edited by RandomGuy; 11-13-2013 at 11:10 AM. Reason: readability and clarity
There is no fixed list from what I understand.
There is just the marginal propensity to spend. poorer = more likely to spend income
If you think about it though, this becomes a bit clearer. The more limited your funds, the more you triage. Let your car limp along with that wobble for month, so that you can have enough for groceries.
Give the person with all that pent up demand for capital spending money and they have a bit more to allocate to those priorities.
Hope that helps.
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