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i agree that full employment is an ideal situation in terms of stability and revenue.
the problem is that, as long as we keep growing the government sector and dragging the private sector down, we have no chance of raising the GDP enough to cover the rising debt level.
i guess what i am asking is are americans who yell more taxes aware that when they want to tax the corporations more, they are going to be paying more taxes themselves?- because the corporations pass those increases on to the customer to continue to be able to make a profit. if they can't make a profit they go out of business and there are less choices for the consumer.
i would like to know what people see when they go out. this is what i see-
more signs for rent on empty strip centers
more for sale signs on empty buildings
malls with less traffic
stores that have been in business for years closing shop
this is central florida and when i went to visit new jersey i saw the same thing in camden county.
i don't know if this is playing out on a national scale, but we better start thinking about how all those lost jobs are going to be replaced.
What we need is big inflation, leading the inflation with upping the minimum wage. Put a freeze on government spending would be a good way to balance the budget. A 200% simple inflation in GDP no need to actual do something like increase productivity just inflate GDP by inflating wages. This is a short term solution. Long term we need to save more money and that will tend to balance trade also it will set us up to get China out of our pockets. (Tin hat time) “They are trying to undo the American experiment and get us inline with their plan. Over the last 30 years we have had a 200% inflation in GDP without a corresponding increase in wages. The difference is in top end compensation. If we get a 200% inflation in GDP by increasing the minimum wage it will undo this wealth transfer.
Save more money it will start to stop the outsourcing. Also put cash into the hands of everyone as this will tend to inflate the bottom end economy.
(Tin hat time) “They are trying to undo the American experiment and get us inline with their plan. Over the last 30 years we have had a 200% inflation in GDP without a corresponding increase in wages. The difference is in top end compensation. If we get a 200% inflation in GDP by increasing the minimum wage it will undo this wealth transfer.
It is a mistake to equate compensation with wealth. The top 1%'s share of the wealth has DECREASED from its high in 1995.
Also, there has been a massive transfer of wealth to the working class over the past few decades...
"This shift of business ownership from rich people to working people may be the greatest economic transformation since the Industrial Revolution. ...So what does all this mean? Well, for starters, it should lead to an end of complaints about the profits of corporations and allegations about 'greedy corporations.' After all, much of that profit now goes toward the current and future retirement incomes of working people." Business Ownership & Labor Day
Everyone who contributes to or benefits from a 401k, pension fund, mutual fund,annuity, or whole life insurance policy, etc., is a corporate owner, en masse. They own the wealth. They get the profits.
By the way, guess who the US's biggest investor is?
CalPERS, the California Public Employee unions' retirement system.
What we need is big inflation, leading the inflation with upping the minimum wage. Put a freeze on government spending would be a good way to balance the budget. A 200% simple inflation in GDP no need to actual do something like increase productivity just inflate GDP by inflating wages. This is a short term solution. Long term we need to save more money and that will tend to balance trade also it will set us up to get China out of our pockets. (Tin hat time) “They are trying to undo the American experiment and get us inline with their plan. Over the last 30 years we have had a 200% inflation in GDP without a corresponding increase in wages. The difference is in top end compensation. If we get a 200% inflation in GDP by increasing the minimum wage it will undo this wealth transfer.
Save more money it will start to stop the outsourcing. Also put cash into the hands of everyone as this will tend to inflate the bottom end economy.
i am not sure that i understand your correlation. inflation would have a detrimental effect on your newly rising minimum wage because, again, it would cost you more to get the same things with inflation.
inflation is just a sneaky way the government collects more revenue. look at it like this-if sales tax collection is up because goods cost more then the government gets more money from you.
This is a reasonable good argument for raising the minimum wage to keep up with or leading this process. Also we need the economy at full employment as this will get more tax revenue and reduce the deficit. .
There is a better argument that says we should totally eliminate the minimum wage. Government has no business telling employers what they should pay employees.
Using your logic we could raise the minimum wage to $1 million per hour and eliminate the deficit in a week.
i am not sure that i understand your correlation. inflation would have a detrimental effect on your newly rising minimum wage because, again, it would cost you more to get the same things with inflation.
We are going to have inflation no matter what. If we lead it with upping the minimum wage then we can get the price of houses going up not down. This is what I care about getting true inflation and with it full employment. The bottom end wages are being eroded currently. If you up the minimum wage faster than the erosion then the bottom end is somewhat better off. Shadow stats has something like 24% unemployment.
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Originally Posted by floridasandy
inflation is just a sneaky way the government collects more revenue.
That is one very beneficial side effect of the inflation that I am talking about causing. We need to cut the deficit and we need a bigger tax base.
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Originally Posted by floridasandy
look at it like this-if sales tax collection is up because goods cost more then the government gets more money from you.
The government needs more money badly.
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Originally Posted by floridasandy
maybe you would want to look at some charts here.
We are in an unsustainable economic position. We need to change the direction that the economy is headed. And we need to do it back in 2008.
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Originally Posted by floridasandy
we have inflation now.
we have rising unemployment now.
These two together make stagflation the worst of deflation and inflation True inflation would be the price of houses going up with those going down we are all messed up.
the time to actually undo the "wealth transfer" was during the wall street bailout, but that time passed.
we, or i should say our congressional "representatives" ,decided to socialize the losses instead.
The wall street bailout was just a portent of what will be coming our way. Multiple Botched and Mismanaged Stress Test Have Created The Makings Of A Pan-European Bank Run He just found two banks that are in as bad a shape as the two that failed in the US and triggered the bailouts. The underlying problems remain and they need to be addressed. The money that was given to Wall Street wasn’t real wealth transfer. The real wealth transfer was in CEO compensation and the lack of increase relative to inflation of the workers’ wages. Upping the minimum wage by 4X will undo this wealth transfer.
We need to start spending money again and we need to keep paying down our debts and we need to start saving money.
There is a better argument that says we should totally eliminate the minimum wage. Government has no business telling employers what they should pay employees.
Using your logic we could raise the minimum wage to $1 million per hour and eliminate the deficit in a week.
It would do that (also repay the national debt in a year) but the consequences would be unacceptable. That would be Zimbabwe type hyperinflation.
$30/hr is sized to push the average wage high enough to support the housing prices at the peak of the last bubble.
Americans getting poorer is by design--of Obama and the Democrats. They want Americans poor so they will vote for Democrats and their pie-in-the-sky social welfare programs.
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