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Old 08-09-2014, 03:59 PM
 
Location: Great State of Texas
86,093 posts, read 72,534,315 times
Reputation: 27566

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Quote:
Originally Posted by dysgenic View Post
We could have the corporations give back the 7 trillion, distribute it to the people, and then let's see how our economy is doing in 5 years.
It was actually loans to banks and the banks pay it back with interest.
Banks have always borrowed at low interest rates from the Fed, sometimes just overnight.
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Old 08-09-2014, 04:00 PM
 
33,046 posts, read 22,072,092 times
Reputation: 8970
Quote:
Originally Posted by TuborgP View Post
The interesting thing is that most of the stories I see about folks working minimum wage jobs in their forties and fifties who always had minimum wage jobs had some sort of sporadic work history with multiple interruptions, usually caused by drugs, alcohol or jail.

??? I worked at one convenience store where everyone was paid within 20 cents of minimum wage; we had a half dozen lifers who had worked there continuously a decade or longer.
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Old 08-09-2014, 04:05 PM
 
2,000 posts, read 1,190,064 times
Reputation: 2280
Quote:
Originally Posted by HappyTexan View Post
It was actually loans to banks and the banks pay it back with interest.
Banks have always borrowed at low interest rates from the Fed, sometimes just overnight.
Right. Also known as the 'spread game'. Pretty easy to play when you are decreed the power to create money out of thin air then cook the books after the fact via accounting chicanery, all the while skimming money off the top via the 'inflation tax'. Unfortunately us serfs aren't given the same power/opportunity by our government. And of course all of it or most of it wasn't paid back, anyway. But I digress.

But you do bring up a good point. Why doesn't the government lend money to the people in the same way? Small businesses are the true source of job creation and always has been in this country. Why not invest in the people instead of the economic vampires that are just a net sink on the economy, anyway?
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Old 08-09-2014, 04:14 PM
 
71,698 posts, read 71,801,099 times
Reputation: 49262
Quote:
Originally Posted by freemkt View Post
How many people would you say are effectively 'ghettoized' in the low-wage labor market due to background issues (e.g. criminal history, bad credit, etc)?

How exactly is my bad credit relevant to employers when it's all at least 10 years old with no original activity within the past 10 years?
50% of black americans\ in nyc who are of working age are unemployed and i can tell you it isn't for lack of jobs. 1 out of 10 graduated high school.

it is for all a whole host of reasons from the fact most employers do drug testing ,background checks and 47% of decent size companies use credit scores as a filter for all hiring. throw in bad presentaion of ones self either by speaking poor english or not having basic math and reading comprehension and all but the lowest level jobs will be unavailable to you..
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Old 08-09-2014, 04:18 PM
 
Location: Great State of Texas
86,093 posts, read 72,534,315 times
Reputation: 27566
Quote:
Originally Posted by dysgenic View Post
Right. Also known as the 'spread game'. Pretty easy to play when you are decreed the power to create money out of thin air then cook the books after the fact via accounting chicanery, all the while skimming money off the top via the 'inflation tax'. Unfortunately us serfs aren't given the same power/opportunity by our government. And of course all of it or most of it wasn't paid back, anyway. But I digress.

But you do bring up a good point. Why doesn't the government lend money to the people in the same way? Small businesses are the true source of job creation and always has been in this country. Why not invest in the people instead of the economic vampires that are just a net sink on the economy, anyway?
They do but people tend not to pay them back.
Student loans and subsidized mortgages come to mind
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Old 08-09-2014, 04:26 PM
 
71,698 posts, read 71,801,099 times
Reputation: 49262
"Originally Posted by freemkt
How many people would you say are effectively 'ghettoized' in the low-wage labor market due to background issues (e.g. criminal history, bad credit, etc)?

How exactly is my bad credit relevant to employers when it's all at least 10 years old with no original activity within the past 10 years?"
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generally who you are is reflected in your relationship with money. poor financial shape and bad scores are generally the result of not one event. they usually have a history of poor planning ,poor choices and bad decisions.

that is not to say someone could not have been destroyed in a hurricane like sandy. they could be but those types of events are rare.

whether you or i think there is a link between low credit scores and job performance really doesn't matter.

all that matters is that employers do and most don't care to even get involved listening to reasons and storys. they just take the next applicant with better paperwork.
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Old 08-09-2014, 04:29 PM
 
2,000 posts, read 1,190,064 times
Reputation: 2280
Quote:
Originally Posted by HappyTexan View Post
They do but people tend not to pay them back.
Student loans and subsidized mortgages come to mind
No way. Federally guaranteed student loans are nothing short of a perverse money making scheme that impairs job creation, not enhances it. Why? Because the interest and principle repayment of the loans represents lost 'opportunity costs' in the form of discretionary income that never gets spent and recycled throughout the economy. It creates a negative feedback loop where people have less/no discretionary income so businesses have less customers and need fewer workers, etc etc.
To say that these loans don't get paid back is false. Federally guaranteed student loan servicers are able to garnish 15% of wages without a court order, taxes are offset without a court order, and Title 4 benefits are suspended without a court order on defaulted loans. Furthermore, these loans are in general never dischargeable through bankruptcy and accrue interest for life.

As to mortgage subsidies, the same principle applies. What's worse is that both these types of loans create price inflation of the underlying product (college, housing) that essentially results in the banks making even more money and taking even more money from the circulation of the economy.

On the flip side, if the government or banks would loan to small businesses, the opposite would happen. Small businesses would buy more equipment, hire more workers, industries would be created, etc etc.
Of course I would not advocate that these loans be made via compound interest, but simple interest.
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Old 08-09-2014, 04:34 PM
 
2,000 posts, read 1,190,064 times
Reputation: 2280
Quote:
Originally Posted by mathjak107 View Post
"Originally Posted by freemkt
How many people would you say are effectively 'ghettoized' in the low-wage labor market due to background issues (e.g. criminal history, bad credit, etc)?

How exactly is my bad credit relevant to employers when it's all at least 10 years old with no original activity within the past 10 years?"
-------------------------------------------------------------------------------------------------------------------------------------------------------
generally who you are is reflected in your relationship with money. poor financial shape and bad scores are generally the result of not one event. they usually have a history of poor planning ,poor choices and bad decisions.

that is not to say someone could not have been destroyed in a hurricane like sandy. they could be but those types of events are rare.

whether you or i think there is a link between low credit scores and job performance really doesn't matter.

all that matters is that employers do and most don't care to even get involved listening to reasons and storys. they just take the next applicant with better paperwork.
Oh, please. "Who you are" has nothing to do with credit score. There isn't even a correlation there. It's just a perverse solution to the problem of too many people chasing too few jobs.
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Old 08-09-2014, 04:38 PM
 
29,784 posts, read 34,880,403 times
Reputation: 11705
Quote:
Originally Posted by freemkt View Post
??? I worked at one convenience store where everyone was paid within 20 cents of minimum wage; we had a half dozen lifers who had worked there continuously a decade or longer.
A decade or longer is not all or a majority of their adult life if they are in their forties or fifties.
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Old 08-09-2014, 04:40 PM
 
29,784 posts, read 34,880,403 times
Reputation: 11705
Quote:
Originally Posted by dysgenic View Post
Oh, please. "Who you are" has nothing to do with credit score. There isn't even a correlation there. It's just a perverse solution to the problem of too many people chasing too few jobs.
That periodically happens so when it does you have to separate yourself from others. This isn't the first economic downturn.
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