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A Warning on Income Inequality, From Wall Str

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s income inequality holding back the United States economy? A new report argues that it is, that an unequal distribution in incomes is making it harder for the nation to recover from the recession and achieve the kind of growth that was commonplace in decades past.

The report is interesting not because it offers some novel analytical approach or crunches previously unknown data. Rather, it has to do with who produced it, which says a lot about how the discussion over inequality is evolving.

Economists at Standard & Poor’s Ratings Services are the authors of the straightforwardly titled "How Increasing Inequality is Dampening U.S. Economic Growth, and Possible Ways to Change the Tide.” The fact that S&P, an apolitical organization that aims to produce reliable research for bond investors and others, is raising alarms about the risks that emerge from income inequality is a small but important sign of how a debate that has been largely confined to the academic world and left-of-center political circles is becoming more mainstream.

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Of course it is and it does not take an economist or genius to understand that, although writers like to think so to fluff their own egos. In short, if people do not make much money they will not have much to spend and then consider wages in these classes are lower and everything else has become more expensive. Ahhh, the joys of consumerism.

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Of course it is and it does not take an economist or genius to understand that, although writers like to think so to fluff their own egos. In short, if people do not make much money they will not have much to spend and then consider wages in these classes are lower and everything else has become more expensive. Ahhh, the joys of consumerism.

Many economists understand perfectly that once enough money is accumulated in a few hands it becomes worthless... that has never stopped the gatherers from wanting to have more... besides that, thew amount a person, no matter how rich, can consume is pretty much limited...if not by money then by time to consume.

The turbo capitalists are those who don't understand that.

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Many economists understand perfectly that once enough money is accumulated in a few hands it becomes worthless... that has never stopped the gatherers from wanting to have more... besides that, thew amount a person, no matter how rich, can consume is pretty much limited...if not by money then by time to consume.

The turbo capitalists are those who don't understand that.

Its a numbers game really and the amount of people with limited money is a growing trend. Without the small consumers , products sit on the shelves and corporations have less profits which cuts into profit margins which puts CEO necks on the chopping block. None of this is desirable by the rich or the poor as they need each other and in fact the rich will find out they need the poor even more because without the poor , the rich don't have as much money and lose their stronghold over the poor. You cannot hold something over a persons head when that person has nothing to lose.

Personally. I used to buy a new car every couple of years, I bought the latest cell every six months to a year, etc. Now, no more new cars, screw smart phones and all the rest of the crap is my attitude. I make less therefore I spend less. I grow my own veggies to help save money at the grocery store.

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One way to mission income inequality is to cut taxes. The rich consider taxes, any tax to be a business expense. Their personal income goes up to cover personal taxes, property, income, and such. One tax they can't easily pass onto their customers is sales tax.

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i dont see how this bizzaro and casino economy will not end in crash like nothing world seen before.

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I agree. It is being propped up by the tax payer.

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OK, so say we tax the crap out of the top 0.1%, or even the top 1%, how is that going to turn around the fact that nearing 50% of the population in the US is becoming dependent on a regular FedGov check showing up? I don't think it does. They are two separate issues. How does taking money from the Rich create jobs for the Poor?

We need to invigorate the economy, but at the same time not spend a lot of money doing it. We need jobs, and people working... Adding to the Federal coffers, rather then drawing out of them.

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OK, so say we tax the crap out of the top 0.1%, or even the top 1%, how is that going to turn around the fact that nearing 50% of the population in the US is becoming dependent on a regular FedGov check showing up? I don't think it does. They are two separate issues. How does taking money from the Rich create jobs for the Poor?

We need to invigorate the economy, but at the same time not spend a lot of money doing it. We need jobs, and people working... Adding to the Federal coffers, rather then drawing out of them.

Raise minimum wage. Make it illegal for companies to profit by keeping their employees on welfare/food stamps.

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Hate to be the realist here but this economy is not ever going to bounce back when the books say theres a 17T deficit and most economists agree its far far more than that. The country is already bankrupt so how long can Americans realistically expect the fed to keep it propped up for? Before anyone has a chance, the US is bankrupt and the evidence is the continuous raising of the debt ceiling. If you have to raise your credit limit then you are not able to pay your bills, pure and simple.

When it does crumble , I will be smiling as it will be the end of a horrible era and the beginning of a new.

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Of course it is hindering recovery. If people don't have disposable income, there is a snowball effect across the entire economy.

No vacations...which effects jobs

No dinner out...which effects jobs

No movie night...

No new cars

No new appliances

No hobbies...i.e. boats motorcycles, etc

As people are forced to spend what little money they have just to survive, it impacts all kinds of things.

The best way to prosperity is to open the doors and let people do their best at whatever it is they do.

Too many laws and regulations stifle people from starting new businesses...it hinders or paralyzes the entrepreneurial spirit.

Bah...but most people know this...and they say nothing to their representatives or demand the laws and regulations be retracted...

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Raise minimum wage. Make it illegal for companies to profit by keeping their employees on welfare/food stamps.

And deregulate 90% of small business. If it is not a health or environmental risk the government should keep itself out of it...completely.

The backbone of any economy is not the Wall Street high rollers or the Megaindustry, it is small and medium companies. They create jobs, they are innovative and they get you through crisis.

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Hate to be the realist here but this economy is not ever going to bounce back when the books say theres a 17T deficit and most economists agree its far far more than that. The country is already bankrupt so how long can Americans realistically expect the fed to keep it propped up for? Before anyone has a chance, the US is bankrupt and the evidence is the continuous raising of the debt ceiling. If you have to raise your credit limit then you are not able to pay your bills, pure and simple.

When it does crumble , I will be smiling as it will be the end of a horrible era and the beginning of a new.

There is no solution to the deficit.

The corporations that now own our government are very happy with the enormous contracts they get...bill sent to future generations of tax payers.

It is maddening in a way when you consider we are accumulating interest debt on money we owe ourselves...BUT...they need to pay those things. I hear so many people rail against SSI...one of the reasons it is in trouble is the GOV pilfered it years ago to balance the budget and never paid it back. Now years later, they want to tell the younger generations how big of a liability this "entitlement" is...it's not an entitlement...it was a good idea and worked just fine till the greedy b@stards in DC decided they could not keep their grubby fingers off of it.

Debt forgiveness/absolution...for everyone...that is the answer.

I know...some folks will freak the frag out...but it's what needs to happen. Wipe it all out...let the cards and companies fall as they will and start it all over with a clean slate.

This time...work with balance budgets or be removed from office immediately. I could be done if the corruption and cronyism wasn't so deeply ingrained.

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Posted (edited)

OK, so say we tax the crap out of the top 0.1%, or even the top 1%, how is that going to turn around the fact that nearing 50% of the population in the US is becoming dependent on a regular FedGov check showing up? I don't think it does. They are two separate issues. How does taking money from the Rich create jobs for the Poor?

We need to invigorate the economy, but at the same time not spend a lot of money doing it. We need jobs, and people working... Adding to the Federal coffers, rather then drawing out of them.

The fallacy of your position is that TAX is the only tool available to address this problem. You are dead wrong and so your argument is simply a diversion from the real issues.

Br Cornelius

Edited by Br Cornelius
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Henry Ford had the right idea a universal minimum wage given to every one and replacing benefits.

This free's people up to do the types of jobs which are just not worth considering because of the financial and legal penalties of working whilst receiving Federal Aid.

This is almost what we have here with the Government supporting many working people with tax credits - but the Government still doesn't want to give up on the coercive moral elements of punishing the poor for been poor. Very counter productive.

The cost to the exchequer would be minimal since more work would be done and more taxes paid overall and the whole massive raft of social welfare administration would disappear overnight.

Henry Ford was a wise man and not the only prominent capitalist to propose this simple measure.

Br Cornelius

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There is no solution to the deficit.

The corporations that now own our government are very happy with the enormous contracts they get...bill sent to future generations of tax payers.

It is maddening in a way when you consider we are accumulating interest debt on money we owe ourselves...BUT...they need to pay those things. I hear so many people rail against SSI...one of the reasons it is in trouble is the GOV pilfered it years ago to balance the budget and never paid it back. Now years later, they want to tell the younger generations how big of a liability this "entitlement" is...it's not an entitlement...it was a good idea and worked just fine till the greedy b@stards in DC decided they could not keep their grubby fingers off of it.

Debt forgiveness/absolution...for everyone...that is the answer.

I know...some folks will freak the frag out...but it's what needs to happen. Wipe it all out...let the cards and companies fall as they will and start it all over with a clean slate.

This time...work with balance budgets or be removed from office immediately. I could be done if the corruption and cronyism wasn't so deeply ingrained.

This is so right and so well said all I can say is...

:clap::nw::tsu::yes:

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The fallacy of your position is that TAX is the only tool available to address this problem. You are dead wrong and so your argument is simply a diversion from the real issues.

Br Cornelius

Exactly. Tax is and he been part of the problem all along. You don't put fire out with gasoline.

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The fallacy of your position is that TAX is the only tool available to address this problem. You are dead wrong and so your argument is simply a diversion from the real issues.

Br Cornelius

You call us dead wrong on the tax issue but you don't give a different solution to the problem. Why because all younyhink of is raise taxes on the rich. That is the democrats answer to e very thing tax and spend.

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You call us dead wrong on the tax issue but you don't give a different solution to the problem. Why because all younyhink of is raise taxes on the rich. That is the democrats answer to e very thing tax and spend.

Daniel I went on to give a detailed suggestion. I didn't give any others simply because I was pointing out the logical error of assuming that there was only one solution. The response given was simply a quote taken directly from a right wing think tank of business lobbyists - its a meme to suggest that to attempt to do anything about income inequality is a rediculous idea. It is a means of attempting to kill debate dead and preserve the status quo.

Br Cornelius

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Why because all younyhink of is raise taxes on the rich.

lmao, what makes him think rich will let him raise their taxes. they get more tax brakes.

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Posted (edited)

OK, so say we tax the crap out of the top 0.1%, or even the top 1%, how is that going to turn around the fact that nearing 50% of the population in the US is becoming dependent on a regular FedGov check showing up? I don't think it does. They are two separate issues. How does taking money from the Rich create jobs for the Poor?

We need to invigorate the economy, but at the same time not spend a lot of money doing it. We need jobs, and people working... Adding to the Federal coffers, rather then drawing out of them.

The fallacy of your position is that TAX is the only tool available to address this problem. You are dead wrong and so your argument is simply a diversion from the real issues.

Br Cornelius

I don't think you actually understood my post/point. I said that tax was not going to work to fix poverty/government dependence. I'm actually saying it is not a good tool, that we need to use another whole tool box of tools.

If I am "dead wrong" Then how does taxing the Rich help reduce government assistance? If I am wrong, then the problem is not jobs, but getting more people OFF working. Which would be the opposite of what I said... Getting more people better jobs.

Edited by DieChecker
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Henry Ford had the right idea a universal minimum wage given to every one and replacing benefits.

This free's people up to do the types of jobs which are just not worth considering because of the financial and legal penalties of working whilst receiving Federal Aid.

This is almost what we have here with the Government supporting many working people with tax credits - but the Government still doesn't want to give up on the coercive moral elements of punishing the poor for been poor. Very counter productive.

The cost to the exchequer would be minimal since more work would be done and more taxes paid overall and the whole massive raft of social welfare administration would disappear overnight.

Henry Ford was a wise man and not the only prominent capitalist to propose this simple measure.

Br Cornelius

And how do you pay for this new intatitlement raise taxes. As I sea d tax and spend. If the government gives everyone a minimum wage where is the incentive to go to work. That is a problem that the social nations are having people not wanting to work.

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lmao, what makes him think rich will let him raise their taxes. they get more tax brakes.

True, but the democrats answer to the debt problem is rase taxes and more intitlements. You raise taxes and prices go up over time. The rich don't pay taxes you and I do. It is in the prices. So the rich get tax write offs thus not paying much in taxes then they pass the full amount that they didn't pay to their customers.

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I don't think you actually understood my post/point. I said that tax was not going to work to fix poverty/government dependence. I'm actually saying it is not a good tool, that we need to use another whole tool box of tools.

If I am "dead wrong" Then how does taxing the Rich help reduce government assistance? If I am wrong, then the problem is not jobs, but getting more people OFF working. Which would be the opposite of what I said... Getting more people better jobs.

I never said it did, it was you who suggested that it was the only tool available.

What I was pointing out is that this is the first and sometimes only response to the issue of income inequality - Taxing more won't help. I think it probably would help quite a bit - but the problems are far deeper and need a systematic overhaul of a system designed by the rich to serve the rich. Taxation is a tiny aspect of the problem.

Br cornelius

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Raise minimum wage. Make it illegal for companies to profit by keeping their employees on welfare/food stamps.

For corporations to have their profits (and small business too), they would simply require more from fewer workers. I've seen it happen over and over here at Intel. Though I do agree that the people who need subsistence assistance from the government could improve their situation by a raise in Minimum wage. Another tool in the tool box, as it were.

What is needed is More Jobs. Jobs to be created. Raising the minimum wage isn't going to help the 40 million who are idle or still looking for work.

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