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You are correct that US treasuries are not 100% safe. However they are lower risk.
My understanding is that the Chile annuity system requires people to put at least a certain % of money into very safe investments like Chilean Government bonds, US Government bonds, government backed bank CDs, etc... The Chilean Government claims that they will guarantee a certain % of a return on these -- that they will compensate any losses on their "guaranteed portion". However, you are right to say nothing is guaranteed.
I understand what you are saying, it just scares me to see anyone advocate for a government to do something illegal in the private sector.
You say increasing minimum wage creates inflation, therefore anyone getting paid above minimum wage creates inflation
I'll break this down in an idiot-proof way for you.
A burger flipper makes $7.25/hr to make hamburgers. Literally anybody can walk in off the street and be doing his job the same day, with very little training. The value of the labor required to do that job is very, very low, hence the low wage.
A rocket scientist makes $120.00/hr to develop mathematical equations related to rockets. Very few people in the country can do what he does. The value of the labor required to do that job is very, very high, hence the high wage.
There's no inflation being created by the rocket scientist, because his wage is set by the law of supply and demand. If he asks for a raise, his employer can weigh the value of his work against the benefit of having that employee, with the size of the pool of potential replacement employees also being a significant factor.
Back to the burger flipper. Let's say that a law is created which forces the employer to pay that burger flipper $10.00/hr. That's a 24%* increase in the cost of labor to complete that task, and the employer gets absolutely nothing in return for that increase. The burger flipper isn't 24% more productive. He's not adding any new value to the company. He's just costing more to keep. So what would the employer do? He'd most likely reduce his payroll costs by cutting hours or employee positions, coupled with a price hike. You can thank the government for that increase in unemployment, underemployment and inflation...
[i]* That's just a raw wage increase. It doesn't include payroll tax increases, unemployment tax increases, SSDI increases, insurance premium increases, etc., all of which are tied directly to payroll costs.
Last edited by CaseyB; 01-06-2014 at 02:48 PM..
Reason: rude/off topic
??? Reducing the rental rates? You must be sh****** me. If you convert a renter in a house into a homeowner in a house, supply and demand are both reduced by one, so how does that help renters?
Wrong.
Convert a renter into a home owner and you get
-1 renter
+1 home owner..
Home available to rent
+1 rental
-1 home non rental
And the rent keeps going up and up while the mortgage payment stays constant, unless you refi at a lower rate and reduce your payment. Yes, taxes and insurance generally rise but they generally do not constitute most of the cost structure. Rent inflation means landlords can capture wage increases whether or not costs rise accordingly. I lived in a house for more than 10 years; there was no mortgage and so the rent was a huge profit stream; about $100K over 10 years with no major expenses during that time.
The cap rate for rental properties have been pretty consistant since the beginning of time.. (i.e. about 10%).. making your babble meaningless..
Property values go up, so yes, rental rates go up as property owners need to maintain their cap rates.
Dont like it, BUY A FRICKEN HOME.. Dont need one expensive, my first one was $12K.. 2nd one $12,500 etc...
No, unless you think you should have the freedom to live like an animal..oh wait, you do have that freedom.
We get it, you want subpar insurance and you are upset Obama won't let you buy scam policies that don't cover anything.
More liberal garbage. Those so-called scam policies work just fine. No, they don't cover maternity care for everyone, but that's not necessary. Why does it need to cover everything? I don't need healthcare for mental illness. I don't need healthcare to cover substance abuse. Why on earth should I be forced to buy insurance that includes those things?
True freedom means I buy what I want, and if it isn't covered, I go without. My decision. Made freely. Funny, no talk of folks living like animals when it was the deadbeats that refused to buy insurance, and plugged up emergency rooms when they got sick. I guess you're only mocked when you're a contributor to society that has had the free market snatched from your hands.
And, for your information, I do NOT have the freedom to live "like an animal" (whatever that means.) If I don't live like this administration wants me to, by buying the type of insurance they decide I need, I am FINED. That is not freedom.
More liberal garbage. Those so-called scam policies work just fine. No, they don't cover maternity care for everyone, but that's not necessary. Why does it need to cover everything? I don't need healthcare for mental illness. I don't need healthcare to cover substance abuse. Why on earth should I be forced to buy insurance that includes those things?
True freedom means I buy what I want, and if it isn't covered, I go without. My decision. Made freely. Funny, no talk of folks living like animals when it was the deadbeats that refused to buy insurance, and plugged up emergency rooms when they got sick. I guess you're only mocked when you're a contributor to society that has had the free market snatched from your hands.
And, for your information, I do NOT have the freedom to live "like an animal" (whatever that means.) If I don't live like this administration wants me to, by buying the type of insurance they decide I need, I am FINED. That is not freedom.
It was an excuse that insurance companies used to charge women more as well as be able to deny them for insurance. Now insurance is non-gender focused.
It was an excuse that insurance companies used to charge women more as well as be able to deny them for insurance. Now insurance is non-gender focused.
When can I expect the drivers license and life insurance costs to be a non gender focused?
You say increasing minimum wage creates inflation, therefore anyone getting paid above minimum wage creates inflation, so it must be bad for people to take jobs above minimum wage because it causes inflation and should take jobs for as low as possible to help deflation.
When you increase the cost of labor arbitrarily, do you NOT expect the employers to raise the price for their products and services to cover the cost?
If the answer is "Yes, they will do that," then that's inflation right there. If the answer is "No, I don't think the employers would do that," then you must be in CO and I don't know what you are smoking.
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