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Haven't seen anyone explain the solution this well. Even from Economics professors at a top tier non-Ivy league Private school.
I've always thought that maximizing productivity and democratizing some of the profit could solve most economic problems.
Big Tech is supposed to do a lot of this, the inherent problem however is know-nothing Hedge fund speculators are taking the wind out of most progressive developments and running these companies into the ground with unrealistic expectations, and siphoning all profits into the hands of the 1%, instead of allowing those funds to flow throughout the economy either via benefits in lowering prices on goods/services or bringing added value (without added mark-ups to every single additional benefit) to the B2B world.
The problem is inherently the American desire for EXCESSIVE profits to investment ratio. For example a Billionaire investor DOES NOT always need a 36% return on investment. Nor is this something the market can consistently and sustainably provide at that volume level. Yet it is what Hedge fund managers seek aggressively from a composite group of hand picked companies - And they'll do anything to achieve that high growth at scale, even if it dooms the long term prospects of said companies. This means the rich guys get their return quickly QoQ for the next 2 years while Joe average sees his 10-20 year HOLD outlook go down into the toilet.
For example, a new technology allows ultra high file size compression. The ability to now make 1 Terabyte = 1MB. Instead of focusing on making it widely available which would greatly increase the speed of the entire Internet theoretically and allow more economic activity than ever before - They license the tech for 10 years to a handful of select companies whom reap the benefits directly and of course the shareholders of those companies who obtain the license. This benefits a select few instead of many people.
The core problem is RICH PEOPLE DON'T SPEND ENOUGH. The average millionaire is focused on AMASSING wealth, not spending in a way that CREATES ECONOMIC ACTIVITY. Rich people don't have enough kids and therefore the DIRECT economic stimulating consumer spending in Rich people is extremely limited. There's only so many Yachts and Ferraris one can buy. The American economy NEEDS a Middle Class!
So show us. Dramatic rants are all well and good, but let's see some numbers... how much does your average millionaire person spend and what arbitrary threshold have you set to be enough?
So show us. Dramatic rants are all well and good, but let's see some numbers... how much does your average millionaire person spend and what arbitrary threshold have you set to be enough?
Why don't YOU....
You seem to have a bone to pick with me. Well I don't have time for the games.
I don't have a bone to pick, I'm just naturally skeptical of people who spout "facts" that seem subjective and arbitrary to prove or support an argument. Like someone saying "many people are doing worse" or "many people are doing better" to make their point about the economy, how can one even quantify something as nebulous as better or worse?
You said millionaires don't spend enough, but when asked how much they spend you tell me to go look it up despite you being the one making the claim. Doesn't that seem a bit suspect? Do you really know how much millionaires spend or as you just making an argument based on assumptions? One would think you had this information right at your fingertips to be using it in this manner.
I kinda sorta agree with him. I don't despise the rich - far from it. But amassing billions and only spending a couple million a year does not trickle down to the middle and lower classes.
The rich do spend on things - private jets and yachts are probably the quickest way to funnel money from the rich to the middle class. It's just they don't spend enough.
The $600b leaving the US a year in trade that pays other country's workers doesn't help either.
I kinda sorta agree with him. I don't despise the rich - far from it. But amassing billions and only spending a couple million a year does not trickle down to the middle and lower classes.
The rich do spend on things - private jets and yachts are probably the quickest way to funnel money from the rich to the middle class. It's just they don't spend enough.
The $600b leaving the US a year in trade that pays other country's workers doesn't help either.
Trickle down economics will never work. We tried it 3x.
RE: Bolded comment - No politician will ever adjust those outflows...
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