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What jug on the counter? You are in 100% favor of taking away the jug on the counter.
OK, make it that they have to go find the stream of water outside. Those who take the initiative to find that stream will have a drink. Those who don't bother and wait for someone to bring them a glass of water will die of dehydration.
exactly how is rich hoarding cash a terrible idea for economy?
the rich people aren't keeping their money under mattress, they are either keeping it in banks in their CDs and money markets (both of which = in bank) or invest it conservatively in the stock market, all of which implies injection of more money into the economy.
in order to make money, the banks turn around and lend this money to businesses, and voila, you get job creation. stock market even further speeds up the process by directly channeling massive amounts of capital in profitable industries.
whoever wrote that article doesn't understand economics.
Not stupid enough to dump another thin dime in to higher education. What I have right now is all Im ever going to have, and Im just going to have to make it work for me the best I can.
Yea, you would be stupid to dump money into getting a doctorate. You'd also be stupid to not realize that you get paid and funded to do a doctorate; not requiring you to spend a dime.
Yea, you would be stupid to dump money into getting a doctorate. You'd also be stupid to not realize that you get paid and funded to do a doctorate; not requiring you to spend a dime.
Exactly. MY sister got her doctorate funded by a German company that was after the research she had to do to defend her dissertation. She not only got the education and research costs covered, but also a stipend that covered her living expenses.
Well there seems to be some sort of unwarranted attack on the wealthy.... which is what is causing them to hoard their money in the first place.
I doubt it. If there were ways they could use their money to make more, they would. I dont care what the polls say about the wealthy's perceived attack upon them, fact is, most of them have the opinion of annerk. They only care about themselves, vilify anyone who is downtrodden, and could give two craps about anyones opinion on what they are doing to make a buck.
If the wealthy REALLY cared about what people thought, theyd start paying living wage, and stop exporting American jobs, and hiring illegals.....but nope.
I think the wealthy simply cant find any good American investments to dump their money in to. They are finally starting to have to pay the piper for eroding the lower classes for the past 3 decades.
Yea, you would be stupid to dump money into getting a doctorate. You'd also be stupid to not realize that you get paid and funded to do a doctorate; not requiring you to spend a dime.
Over taxing citizens doesn't work. This country was not built on socialist principles, and we should not move in that direction. It doesn't work. It just makes people lazy because they ahve no reason to work harder or make investments. Ask Russia.
I'm not saying this guy is 100% right or wrong, but he raises some valid points. Namely, the feasibility of generous welfare programs and relatively high tax rates depend to a high degree on a nation's culture instead of just absolute rules of standard economic theory. Basically, the prevalent culture of the U.S. is more like parts of Southern Europe (Or maybe even worse) than it is like Northern Europe, e.g., Norway, Sweden, etc.
For those who don't want to bother with the link, the idea is basically that some cultures have a strong culturally ingrained work ethic and solidarity throughout the spectrum of income earners, and those near the bottom feel shame for freeloading so they tend to not do it. Because most of the population has similar values and work ethics, there are guaranteed benefits for anyone below a certain level, and most people are relatively OK with paying more in taxes to sustain the system and yet there is marginal disincentive to work.
Consider how comparatively paltry welfare benefits are in the U.S and yet how many people are willing to take them. Can you imagine what it would be like if taxes were higher here (U.S. top rate: 35%, Swedish top rate: 57%) and benefits commensurately more generous? It wouldn't work out very well, I don't think. It's because we're not like Sweden, or Denmark, or Norway, or The Netherlands or any country populated with mostly educated and reliably hard working people. We're more like Italy or Greece or some other similar place: sure, there are many industrious hardworkers, but there are also too many people who aren't. And there are people who would go to great lengths to avoid paying income taxes, as the article also describes (that is, more evasion in certain countries than others if when adjusted for tax rates).
exactly how is rich hoarding cash a terrible idea for economy?
the rich people aren't keeping their money under mattress, they are either keeping it in banks in their CDs and money markets (both of which = in bank) or invest it conservatively in the stock market, all of which implies injection of more money into the economy.
in order to make money, the banks turn around and lend this money to businesses, and voila, you get job creation. stock market even further speeds up the process by directly channeling massive amounts of capital in profitable industries.
whoever wrote that article doesn't understand economics.
No, you dont understand economics.
First of all, most stock market transactions are not creating anything. Its identical to playing the lottery. After the IPO, stock trading is just gambling for the most part.
Second, in THEORY banks loan out the money the wealthy stick in it. Problem is, nobody wants the money when there is no demand. You can offer all the capital you want, but only idiots are going to start businesses that are producing products that dont sell, which is exactly why the term "job creator" is a joke. Why do you think savings rates are so low? Aside from the treasury rates being dirt, banks arent getting any kind of return on capital, and therefore cant pay out any kind of return on deposit.
First of all, most stock market transactions are not creating anything. Its identical to playing the lottery. After the IPO, stock trading is just gambling for the most part.
Gambling gives you a 50/50 chance of losing. The stock market has systematically created value over time. There has not been a 30 year period in the history of the US stock market where it has not gained at least 8%. Stock trading couldn't be further from gambling. It just looks like gambling to people too lazy to figure out how the market works.
Quote:
Second, in THEORY banks loan out the money the wealthy stick in it. Problem is, nobody wants the money when there is no demand. You can offer all the capital you want, but only idiots are going to start businesses that are producing products that dont sell, which is exactly why the term "job creator" is a joke. Why do you think savings rates are so low? Aside from the treasury rates being dirt, banks arent getting any kind of return on capital, and therefore cant pay out any kind of return on deposit.
Can you speak to the major role the FED as well as government regulation has on the current state of banks being hesitant to loan out money?
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