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Or the other obvious option, which is that we could pursue policies that would not allow the wealthy to rig the economy in that way.That wasn't the point at all. The rich are going to do what they are going to do. I just told you what they are doing to do. You can make the same play on your scale or you can sit back and cry.
This kind of response isn't well thought-out on your part. You're basically saying something like, "look, this is just the reality. You can either deal with it, or feel sad about it." But that logic can be extended--if it's all just down to force and reality and no other factor enters into the discussion (i.e. factors like justice or morality) than why shouldn't we all just start killing each other and taking what we want? I can think of any number of people who would do quite well in a fight against Elon Musk, for example--perhaps one of them should just twist his head clean off his neck and take his wealth; then if anyone expresses any horror or reservation at what has happened, we can just tell them to go have a nice cry about it and then just face up to reality.If we are playing football and I tell you I'm going to pass the ball you can either play pass defense, pass the ball on your downs or you can sit on the bench and cry.
I dare say, not by firing 17 Inspectors General. That's the opposite of correction.Everything right now needs to be corrected.
Or the other obvious option, which is that we could pursue policies that would not allow the wealthy to rig the economy in that way.
This kind of response isn't well thought-out on your part. You're basically saying something like, "look, this is just the reality. You can either deal with it, or feel sad about it."
But that logic can be extended--if it's all just down to force and reality and no other factor enters into the discussion (i.e. factors like justice or morality) than why shouldn't we all just start killing each other and taking what we want?
I can think of any number of people who would do quite well in a fight against Elon Musk, for example--perhaps one of them should just twist his head clean off his neck and take his wealth; then if anyone expresses any horror or reservation at what has happened, we can just tell them to go have a nice cry about it and then just face up to reality.
Not in every case, but in many cases, yes they do, through two avenues. First, companies regularly either split stock or make secondary offerings and sell shares directly on whatever exchanges they've listed, in which case, the sale of those shares raises capital directly. Secondly, and more commonly, companies own a certain share of their stocks directly and can sell those without making a secondary offering. Anything that drives up the price of those shares leads to unrealized gains in their available capital--most usually, companies will simply seek loans against the value of those shares.
You'll have to define what you mean by "misallocation" before I can comment.
So the income/wealth gap can be cured by non-economic means? Seems obviously false, but I'll be interested to hear it if you can explain what you mean.
We're already in a "proper long & strong" recovery.
Oh for God's sake this is giving a moron too much credit. He has no plans just chaos."Traders are starting to price in the possibility that the U.S. economy might fall into a recession — and one Wall Street veteran says that might actually be the Trump administration’s plan.
Charlie McElligott, a strategist at Nomura dubbed Wall Street’s most wired analyst by the Financial Times for his manic missives focused on the options market, laid out the argument in a note to clients.
He said President Donald Trump and his administration need an engineered recession to cause a growth slowdown and disinflation that will translate into Fed rate cuts and a meaningfully weaker U.S. dollar for the next phase of his economic agenda.
In another note to clients on Wednesday morning, McElligott cited remarks made by Treasury Sec. Scott Bessent on a focus on small business and consumers that will require a “rebalance,” as Trump in front of Congress on Tuesday night spoke of being “okay” with a little disturbance from tariffs.
The idea is that Fed rate cuts and supply-side stimulus from tax cuts and deregulation will then be able to build up the economy without the need for government spending."
Link
This is a good, simple explanation of what Trump is trying to do. It's a pretty tall order and I'm not sure that what works on paper will happen in the real world. And indeed, there are many critics of this idea. These are weeds I'm not eager to wade into.
Our "recovery" is like if you lost your job and charged all your living expenses for two years and declaring all is well and you are prosperous.
We are desperately debt financing nearly $2 trillion a year of "growth".
The very wealthy generally do very well in recession... they buy up distressed properties and distressed businesses
Interesting."Traders are starting to price in the possibility that the U.S. economy might fall into a recession — and one Wall Street veteran says that might actually be the Trump administration’s plan.
Charlie McElligott, a strategist at Nomura dubbed Wall Street’s most wired analyst by the Financial Times for his manic missives focused on the options market, laid out the argument in a note to clients.
He said President Donald Trump and his administration need an engineered recession to cause a growth slowdown and disinflation that will translate into Fed rate cuts and a meaningfully weaker U.S. dollar for the next phase of his economic agenda.
In another note to clients on Wednesday morning, McElligott cited remarks made by Treasury Sec. Scott Bessent on a focus on small business and consumers that will require a “rebalance,” as Trump in front of Congress on Tuesday night spoke of being “okay” with a little disturbance from tariffs.
The idea is that Fed rate cuts and supply-side stimulus from tax cuts and deregulation will then be able to build up the economy without the need for government spending."
Link
This is a good, simple explanation of what Trump is trying to do. It's a pretty tall order and I'm not sure that what works on paper will happen in the real world. And indeed, there are many critics of this idea. These are weeds I'm not eager to wade into.
Often external factors get in the way of diet, exercise and many other improvements.
A number of economists are skeptical of the effectiveness of this policy.
I guess we'll have to wait and see. It's quite possible it could be all pain and no gain.
The "problem of human nature"? What is that? I don't think there is such a thing as human nature. It seems to me that people tend to differ quite fundamentally. I suppose one can say that we all need to eat, sleep, hydrate, shelter, and so on, but solving the kinds of problems those needs create are very clearly not what the wealthy elite and their allies in government are doing. In fact, quite the opposite for a great many people--they're making obtaining the goods that satisfy those needs even harder.It's not rigging it. It's working the problem of human nature.
Thank you for doubling down, though there is no need for you to make my job here any easier. It's easy enough as it is.I'm not "basically saying", you have a direct quote.
Incorrect. I called attention to the moral dimensions of recent (well, recent in generational time) economic trends, and your response was, basically "stuff it! Deal with reality!" Your response was simply to deny that there is a moral dimension that has any import. So, if that is the case, how can you, in any principled manner, halt the logical next step in that evolution? To put the point differently, if the wealthy not only are but should be, in your view (as you seem to have not only stated but confirmed), free to so arrange the economy that it massively benefits them at the expense, the very painful and sometimes lethal expense, of the lower classes, why should not the lower classes be free to simply kill the wealthy? The wealthy are quite free, in your view, to kill them--according to what you've said in this thread, they ought to have that kind of power. So why would it not work the other direction?This is called a logical leap. "You said you'd go to dinner with me so now rape is justified to get what I want since you didn't put out."
You disagree with the morality you portray here in a strawman matter so then you double down on it by adding a logical leap to the strawman.
When people live by the rules you're relying on in this exchange for long enough, it always comes down to physical battles to the death. Now, I might agree that's not the best way to generate wealth, sure--but that's not exactly what we're talking about. We're talking about people getting their share of what wealth there is, which is a different point.If the way to acquire wealth were currently by physical battles to the death you might have a point. In fact that model worked to a degree in the past. The reason it fails today is much of the wealth generation is understanding and utilizing more than force. You could twist a million heads off a million people and likely not come up with the talent stack that Elon his circle have.
The "problem of human nature"? What is that? I don't think there is such a thing as human nature.
It seems to me that people tend to differ quite fundamentally. I suppose one can say that we all need to eat, sleep, hydrate, shelter, and so on, but solving the kinds of problems those needs create are very clearly not what the wealthy elite and their allies in government are doing.
In fact, quite the opposite for a great many people--they're making obtaining the goods that satisfy those needs even harder.
Thank you for doubling down...
Incorrect. I called attention to the moral dimensions of recent (well, recent in generational time) economic trends, and your response was, basically "stuff it! Deal with reality!"
Your response was simply to deny that there is a moral dimension that has any import. So, if that is the case, how can you, in any principled manner, halt the logical next step in that evolution?
To put the point differently, if the wealthy not only are but should be, in your view (as you seem to have not only stated but confirmed), free to so arrange the economy that it massively benefits them at the expense, the very painful and sometimes lethal expense, of the lower classes, why should not the lower classes be free to simply kill the wealthy?
The wealthy are quite free, in your view, to kill them--according to what you've said in this thread, they ought to have that kind of power. So why would it not work the other direction?
I suppose you could pivot to something like the Han Fei,......
Your counter example--the dinner/rape example--is a non sequitur. There's no denial, in the dinner/rape example, on the part of the person who said they'd go to dinner that there's a moral dimension to their interactions. My violence example goes through because you denied that there is a moral dimension to economic interactions; if there is not, then you can have no objection to violence.
When people live by the rules you're relying on in this exchange for long enough, it always comes down to physical battles to the death. Now, I might agree that's not the best way to generate wealth, sure--but that's not exactly what we're talking about. We're talking about people getting their share of what wealth there is, which is a different point.
As for the Elon-talent thing...you've spoken truer than you purpos'd......
Well, maybe I wasn't clear, but all that is needed for my point to go through is that when people buy a company's stock, that company tends to have more money to spend.Feels like you are attempting to use the exception to prove the rule. Buying and sharing stocks does not give a company money to spend. You are talking about ways they can leverage the value of those shares for liquidity and that is different.
Yeah, I'm still not sure what you mean. It sounds like you're saying that funds are misallocated whenever they're not invested in what would have given the highest rate of return, had the person doing the investing had perfect (including future) knowledge at the time of the investment. If that's the case, since we generally cannot see clairvoyantly into the future, funds will always be misallocated.By the time "everyone knows" the easy gains in a market are gone. Herd mentality is not rational. You get greed and other variables at play there vs return on investment. When the "crowd" rushes in on a market, it leads to misallocation because you have more dollars seeking a return than would be justified and likewise other areas tend to be undeserved or ignored. That is they are ignored by that same herd. The smart people have already moved on.
Again, what's a "proper" return? It sounds like your reasoning on this matter is circular: when funds are misallocated, they don't get a proper return, but we define misallocation by funds not getting a proper return. That, combined with a lack of definition of what amounts to a proper return, makes your point unclear.The point is most people can do this in different parts of the economy but not in an everything bubble. In an everything bubble nearly all investments are overpriced and will not yield a proper return.
That's one reason. Another reason is the great resignation; employers are now having to pay more for labor (a good thing in my opinion). Yet another reason is the war in Ukraine and the interruptions to shipping out of the Black Sea. And yet another reason is simple corporate greed.The government has been printins and just shoving money everywhere which is why we have so much inflation. There are more and more dollars seeking the same amount of goods.
To my mind, it's one of two measures that are of the utmost import. We need to know how much wealth is being generated, and how that wealth is being distributed. I suspect that you and folks who take your view have forgotten why we have an economy in the first place. The reason is because if we try to live entirely on our own, we tend to die pretty quickly. But conversely, living in society with others and trading within an overall framework of cooperation leads to human flourishing--it delivers the human goods we want and need. Clearly, however, that entire motive is subverted if all the goods being produced flow to just one or a few individuals, while everyone else works and get nothing.The gap itself doensn't measure anything directly with reagard to economic progress.
I can't think of a single person who thinks exactly that. It seems to me that "desperately poor" is usually defined in terms of things like food security, adequate shelter, access to medicine, water, clothing, and so on. I'm reminded here of that interview with Jeff Yass who said that there is no such thing as an income gap because a billionaire goes home, has a beer, watches a little T.V. or maybe reads the news on their laptop, maybe plays a game on that same laptop, reads a book, goes to bed--just like (in his mind) a poor person does. So there's no difference, for him, between the rich and the poor.For example using relative poverty, a child today might be considered desperately poor because their household only has a PS2
Anyone who has raised a toddler knows that immature little idiots break a lot of things when they get angry. Most people eventually grow complete myelin sheaths, stop doing that, and begin to understand that angry children are to be properly raised, not put completely in charge of our national and global fates.
Which country are you posting from?The country agrees which is why they fired Biden and Democrats.
As wealth increasingly shifts to the top 10% of Americans, those 30 million Americans will increasing use idle wealth for investment (mostly in real estate), the result will be to continue to increase demand for speculative investments as more money shifts into the hands of the top 10%. It's simple supply and demand. Ironically, you seem to believe that austerity will solve the problem through disinflation, but what you're going to find is that it will make it much, much worse (for the bottom 90%) as the result will be even greater amounts of wealth are captured by the top 10% (while this administration is reducing taxes on the top 10%).That wasn't the point at all. The rich are going to do what they are going to do.
In fact less than 1/2 of all registered voters in the US voted for Trump (77 million of 161 million). To say that the "country" agrees is a stretch, and it's worth pointing out that a lot of those people are already suffering buyers remorse.The country agrees which is why they fired Biden and Democrats.
The weapons are economic.So first point, and we have character limits here so remember that, I'm not talking up the stock market nor saying anything about stocks reflect overall economic health. When you purchase a company's stock they don't have more "cash to spend".
Recessions correct misallocation of capital. However in this, the misallocation is the massive printing of dollars to prop up failing and zombie investments through out almost the entire economy, hence everything bubble.
There's a lot of disconnect in what you're saying here. A recession would certainly help stop inflation.
Your concerns here are social, not economic.
Well, maybe I wasn't clear, but all that is needed for my point to go through is that when people buy a company's stock, that company tends to have more money to spend.
Yeah, I'm still not sure what you mean. It sounds like you're saying that funds are misallocated whenever they're not invested in what would have given the highest rate of return, had the person doing the investing had perfect (including future) knowledge at the time of the investment. If that's the case, since we generally cannot see clairvoyantly into the future, funds will always be misallocated.
Again, what's a "proper" return? It sounds like your reasoning on this matter is circular: when funds are misallocated, they don't get a proper return, but we define misallocation by funds not getting a proper return. That, combined with a lack of definition of what amounts to a proper return, makes your point unclear.
That's one reason. Another reason is the great resignation; employers are now having to pay more for labor (a good thing in my opinion). Yet another reason is the war in Ukraine and the interruptions to shipping out of the Black Sea. And yet another reason is simple corporate greed.
To my mind, it's one of two measures that are of the utmost import. We need to know how much wealth is being generated, and how that wealth is being distributed.
I suspect that you and folks who take your view have forgotten why we have an economy in the first place. The reason is because if we try to live entirely on our own, we tend to die pretty quickly. But conversely, living in society with others and trading within an overall framework of cooperation leads to human flourishing--it delivers the human goods we want and need. Clearly, however, that entire motive is subverted if all the goods being produced flow to just one or a few individuals, while everyone else works and get nothing.
Now, that last bit is an extreme--most people in our society get something from working, but things have been skewing toward the oligarchic end of the scale since the late 1970s.
I can't think of a single person who thinks exactly that. It seems to me that "desperately poor" is usually defined in terms of things like food security, adequate shelter, access to medicine, water, clothing, and so on. I'm reminded here of that interview with Jeff Yass who said that there is no such thing as an income gap because a billionaire goes home, has a beer, watches a little T.V. or maybe reads the news on their laptop, maybe plays a game on that same laptop, reads a book, goes to bed--just like (in his mind) a poor person does. So there's no difference, for him, between the rich and the poor.
Which is absurd. Had I been interviewing him, I'd ask him when was the last time he wasn't sure he was going to be able to afford his rent. When was the last time he was unsure when he'd be able to afford food again. He can stop working right now, and live out the rest of his days in complete luxury. A poor person has no choice but to go to work, even if they absolutely hate their job.
Which country are you posting from?
I doubt he's smart enough to make it intentional. The GOP may well need more excuses for budget cuts to pay for reduced taxes on the wealthy and thus the party wing could be driving Trump's agenda."Traders are starting to price in the possibility that the U.S. economy might fall into a recession — and one Wall Street veteran says that might actually be the Trump administration’s plan.
Charlie McElligott, a strategist at Nomura dubbed Wall Street’s most wired analyst by the Financial Times for his manic missives focused on the options market, laid out the argument in a note to clients.
He said President Donald Trump and his administration need an engineered recession to cause a growth slowdown and disinflation that will translate into Fed rate cuts and a meaningfully weaker U.S. dollar for the next phase of his economic agenda.
In another note to clients on Wednesday morning, McElligott cited remarks made by Treasury Sec. Scott Bessent on a focus on small business and consumers that will require a “rebalance,” as Trump in front of Congress on Tuesday night spoke of being “okay” with a little disturbance from tariffs.
The idea is that Fed rate cuts and supply-side stimulus from tax cuts and deregulation will then be able to build up the economy without the need for government spending."
Link
This is a good, simple explanation of what Trump is trying to do. It's a pretty tall order and I'm not sure that what works on paper will happen in the real world. And indeed, there are many critics of this idea. These are weeds I'm not eager to wade into.
I am near retirement age.We could have had sane and normal instead of 4 years of chaos.
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