Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The question is, where does this top 1% get their money? The general economic argument is that "They simply earn that money through entrepreneurship and hard-work". Well, do they?
Lets understand, the vast majority of the income of this top 1%, comes from "capital gains". As a general rule, these capital gains are related to the increase in value of their holdings of stocks. But what causes a stock to go up in price?
Stocks go up in price through a bidding system. But, it takes money to bid up the price of a stock. And so, without the influx of new money, the price of individual stocks can go up and down, but the overall size of the stock market doesn't usually change much.
As a general rule, if the stock market goes up 5% in value, that means the total amount of money available to bid up the stock market has gone up 5%. Now, that isn't always true, because sometimes people pull their money out of stock markets altogether, or buy other assets, such as gold and real-estate. But as a general rule, a 5% increase in the value of the stock market, means the bidders in the stock market have 5% more money to use to bid up the system.
The vast majority of that money comes through the "expansion of the money supply" through the Federal Reserve. Though they can divert more money from other things into the stock market. Something like "privatizing social security" would divert a huge amount of new capital into bidding up the stock market. Right now, the Social Security system is mainly built off government bonds.
Since the vast majority of the "so-called" wealth is produced through the machinations of the Federal Reserve, and goes directly into the pockets of the rich. Then it should be no surprise that the most profitable industries tend to be those who seek mostly wealthy customers. Basically, "luxury" markets, especially expensive real-estate in places like New York City(IE where Wall Street is actually located). As well as luxury cars, yachts, electronics, etc.
This is all part of the overall "trickle-down" economic system. The incomes at the top are created through monetary inflation. The super rich spend that money buying luxury goods from the upper-middle class. The upper-middle class buys goods and services made by the labor of the middle-class, and the middle-class buys goods and services provided by the lower-classes.
And then everyone at the "top" and "middle" whines about how lazy these poor people are because they don't pay enough taxes.
If poor people weren't beneficial to the "rich", then Why do you think the corporations and big-business invite in so many third-world immigrants?
As long as the middle-class continues to see the poor as their enemies, the rich win. And we will never be able to throw off this corrupt system.
My friends, our enemy is the banks. They have always been our enemy, and they will always be our enemy.
Heck, there is an entire financial industry based on milking the poor for billions and billions of dollars.
Originally Posted by petch751 View Post
LOLOL ^^^^ O's useful Idiot
If I am going to work every day to make $100k then no I am not rich. If I receive a cash flow of $100k a year without working then yes I am doing pretty damn good if not rich.
Quote:
Originally Posted by westboundrambler View Post
That's not even a thing! VERY few people just get "free money". Jesus, you're the most delusional person on this forum.
Quote:
Originally Posted by pghquest
Cash flow isnt "free money"
its usually INVESTMENT income.. I've got cash flow even higher than that and hasnt paid a dime in 15+ years.
westboundrambler, a typical example of an Obama supporter who doesn't know the difference between high income and true wealth (the rich as the left calls them). That's why politicians and bankers were able to fool them so easily. Obama was laughing at them as they pledged their support for taking more money from the American people.
SOME people advocate for taxing WEALTH, and conservatives squeal like stuck pigs.
Think about taxing wealth, really put some thought into it. A better suggestion is that everybody has skin in the game and politicians learn to work with the money we pay them like the rest of us learn to budget. These idiots think Americans are a bank to be robbed and people who don't pay, especially people getting a hand out couldn't care less about other people paying their share.
End the mortgage interest deduction?
No need it... free and clear, wasn't worth anything for me due to AMT
End tax-free employer-provided health benefits?
I pay my own insurance, and probably subsidize yours. I know I subsidize breeders since I am forced to pay for maternity care at 54
End taxpayer bailouts for homeowners?
Don't need bailed out, I used common sense and knew what I could afford.
Heck, there is an entire financial industry based on milking the poor for billions and billions of dollars.
Key, know what you can afford, understand basic finance and it won't be so easy to be milked. Stop believing the pixel dust fairies of the left.
What the mortgage bubble was all about was big banks like Goldman Sachs taking big bundles of subprime mortgages that were lent out largely to low-income, highly risky borrowers, and applying this kind of magic-pixie-dust math to these bundles of securities and slapping AAA ratings on them.
I'm going to say again. If you people don't understand how the Federal Reserve and Wall Street work together to produce "fictitious capital". That is not only used to buy up all the important assets in this country, but is used to buy up the assets of the entire world, and to economically manipulate foreign governments. Then you either need to educate yourselves, or shut up.
Please stop talking about tax rates when you don't even understand the nature of wealth, or the machinations which cause inflation, and how the Federal Reserve necessarily creates a "top-down" economic system.
It hurts my head listening to idiots rambling about how evil poor people are because they don't work hard enough.
An ignorant man can provide no solutions.
As Jefferson said, "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.