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If an Alien read a collection of anecdotes and statistical data that purposefully slanted for any nation on earth, they'd conclude every single nation was a monstrous hellhole. Yet I suspect that Alien would still conclude the Scandinavian nations to be amongst the least hellish.
Huh? If everybody spends $1.00 less tomorrow, the average wealth of an American doesn't suffer - if anything, it is higher as a result of not paying for something that was made overseas. Money changing hands does not equal more money. Money going overseas leads to less money here.
The idea that thrift would make everyone poorer is false.
Of course it would. If less is spent, prices drop for goods already produced or production will decrease for goods slated to be produced. Even for foreign goods, a large portion of the expenses built into the price of production arise from transport, marketing, sales, etc... in America. With less consumption and less production is less employment. With less employment, competition for remaining jobs is stiffer and wages are driven down, etc...
The vicious cycle within Capitalism most often arises from overproduction and/or underconsumption. Given the state of our economy and our high productivity per hour (and the high overhead cost of hiring more workers for fewer hours), it would be rather disastrous to see decreases in spending, at least assuming that we continue with the economic model we have.
People tell you that they have a mortgage and significant student debt. But oh they just bought an audi.
So they pay the auto company, the insurance company and the bankers. The bankers charge a much higher interest rate for loans then for savings.
This is the redistribution of wealth that so many Americans voluntarily choose. This is why Americans don't accumulate wealth. This is why Americans don't become financially free or independent. This is why Americans are corporate slaves. We need to find better and better paying jobs because our desire for stuff keeps going up.
People in other western countries live better not just because of their social welfare, but because of their frugality and control will. Every Americans can easily be in much better financial shape if they practice the type of frugality seen in most parts of the world.
Of course they charge more and savers get a portion. The banks take the risk. Savers are guaranteed to certain amount in program run by government which banks pay into. Americans accumulate wealth same as others and you might find that loan rates for mortgages of 30 years fixed not available in say UK. IMO more people are more and more government dependent which is slavery of government becoming middleman . Private sector pays taxes and government decides what you get of that.
People tell you that they have a mortgage and significant student debt. But oh they just bought an audi.
So they pay the auto company, the insurance company and the bankers. The bankers charge a much higher interest rate for loans then for savings.
This is the redistribution of wealth that so many Americans voluntarily choose. This is why Americans don't accumulate wealth. This is why Americans don't become financially free or independent. This is why Americans are corporate slaves. We need to find better and better paying jobs because our desire for stuff keeps going up.
People in other western countries live better not just because of their social welfare, but because of their frugality and control will. Every Americans can easily be in much better financial shape if they practice the type of frugality seen in most parts of the world.
That's not what "redistribution of wealth" refers to. It refers to the taxation system and government benefits. Europeans are far ahead of the US in that regard. And I don't know anyone with a mortgage, student debt, and an expensive car. Your premise is flawed. Audi isn't even that popular a brand.
If an Alien read a collection of anecdotes and statistical data that purposefully slanted for any nation on earth, they'd conclude every single nation was a monstrous hellhole. Yet I suspect that Alien would still conclude the Scandinavian nations to be amongst the least hellish.
The irony is that its quite likely you did not get the point just like the aliens.
Huh? If everybody spends $1.00 less tomorrow, the average wealth of an American doesn't suffer - if anything, it is higher as a result of not paying for something that was made overseas. Money changing hands does not equal more money. Money going overseas leads to less money here.
The idea that thrift would make everyone poorer is false.
Now I get it. You make up complete mythologies all the time. What pray tell is this complete rubbish? Money changing hands is simply the financial aspect of trade . As long as there is a circular flow of goods and services between two parties it does not matter of its a barber and a hot dog stand or two nations. The only way for Germans to buy American goods is for an American to send dollars overseas.
The only time this is a problem , again not mattering in scale, is if here is a one way exchange of good for financial assets , otherwise know as debt. Unemployed bum running up a bar tab = bad. Greek bonds for Mercedes = bad.
What sort of back ground do you have ? Are you well read in economics? Do you hold to a particular theory or theorist? Are you making up your own? What justifies this dissociative fugue you have taken from basic economics?
Of course it would. If less is spent, prices drop for goods already produced or production will decrease for goods slated to be produced. Even for foreign goods, a large portion of the expenses built into the price of production arise from transport, marketing, sales, etc... in America. With less consumption and less production is less employment. With less employment, competition for remaining jobs is stiffer and wages are driven down, etc...
The vicious cycle within Capitalism most often arises from overproduction and/or underconsumption. Given the state of our economy and our high productivity per hour (and the high overhead cost of hiring more workers for fewer hours), it would be rather disastrous to see decreases in spending, at least assuming that we continue with the economic model we have.
Its ironic that land lords , the welfare queens of Malthus, gave birth to this idea. And yet every point of view must take into account "effective demand".
In Malthus' view, saving by capitalists reduces demand; consumption by landlords increases demand. Hence, a redistribution of income from landlords to capitalists could precipitate a crisis.
Like Ricardo, Malthus finds the key to the accumulation of capital in the distribution of income. In order to eliminate gluts and promote economic growth Malthus advocates redistributing income to the rentier
Basically Malthus is saying Donald Trump is a welfare queen , and exactly what I have said all along that the real estate and finance is a government redistribution of wealth program. The only problem is the FIRE sector now controls most of the capital and is profoundly gifted in causing gluts due to lack of demand from credit squeezes.
I can't laugh hard enough in that he was so right and so wrong simultaneously, all these years later.
Of course not because it contains absolutely no useful information. I have read the same rant a hundred times. I too have the guilty pleasure insulting the behavior of Americans , but I try to offer more than an opinion. Did you notice I refuted your banal post with facts and a rational argument that explains one reason why Americans go bankrupt more often?
Great, but its been refuted with facts.
Oh so then you are for austerity, meaning you don't account for the the guy making the SUV going bankrupt if no one buys it. You know a carousel goes around and around right? It was engineered to do so.
No kidding and the rich designed it that way.
Which means the seller is winning the game of musical chairs. If people did not buy it then the would be save wins the game. Someone is going bankrupt. Its designed that way. There is no way to save eveyone in the arrogate when not enough finance flows through the system.
OK , well, they are not like you or me I suppose. I live on about half my income and invest and pay off (secured)debt with the rest. I ride bikes rather than driving cars , rarely dine out, make gourmet food out of lawn weeds, and make my own wine from the land scape. Good stuff too since I would not part with my wild grape wine for $25 bucks a bottle. I can with a rocket stove I build out of junk and use scrap wood for fuel. Americans are quite silly, but I don't find that Americans are that much more silly than the rest of the world in that regard. They impress me most with their arrogance and ignorance, willing to be an authority on something they know nothing about. Now that is a particular American trait.
However what is dumber, spending too much money on something you want or voting for politicians who support tax polices particularly good for the idle rich? I'd say going into debt and getting nothing is even more dumb.
I think you heart is in the right place, but you seem intelligent enough of a person to improve your methods.
So Americans aren't that much more silly, you shay, but they impress you with their arrogance and ignorance. The arrogance and ignorance are exactly what I was talking about.
That's not what "redistribution of wealth" refers to. It refers to the taxation system and government benefits. Europeans are far ahead of the US in that regard. And I don't know anyone with a mortgage, student debt, and an expensive car. Your premise is flawed. Audi isn't even that popular a brand.
No it's not. You didn't understand my point. Everyone knows our narrow definition of the phrase wealth redistribution. But that's the problem I am trying to analyze. The fact is that wealth redistribution is much broader than that. Americans don't see it. They are trapped in it.
A good read. It does add some perspective to the overall picture.
And funny!
Last edited by shaker281; 08-12-2014 at 10:42 PM..
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