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I've explained it in previous threads, but will do it again. In markets with a growing population but steady housing supply, wealth&income disparity causes overpriced housing through the "drainage effect". This is where people with more money than others will pay more than a property is objectively worth just because they can, rather than the property really being worth that much. I mean, do you really think that a 1,000 sq ft ranch home in Lynwood, CA (right next to Compton FYI) was actually worth the $600k that it was going for in 2007?!?
How is that a problem? Don’t like the price, don’t buy the house.
What does this have anything to do with Jeff has more money?
Free people do not allow substantial inequality, no way, no how. Human nature right there. We value our limited time and health about the same. We must be coerced into unequal exchanges. Show me a legit start up with obscene compensation inequalities. But once that start up matures and taps into the institution of wage slavery - sky is the limit. Sure, many people are OK with institutionalized forced inequality but only because of selective breeding for the past 10,000 years, and they simply have no choice but to accept unequal exchanges. If by some unlikely chance they get into a position where they can exert influence on the rates of exchange, it does not really matter how much talk radio and Fox they consume they'll insist on more equal terms. Until such an opportunity will present itself they'll be extolling the virtues of unrestricted inequality.
Who coerced you?
What’s wage slave? Don’t like the wage, don’t work for them.
Like I stated - something, and/or anything. You state nothing. You simply ask questions.
Thread Bumper. $$$ poster. But I could be wrong - a real answer could determine.
How about this:
“ No Monopoly can exist without government meddling”.
It’s Nonsense, but go ahead.
Tell us why. Make an academic argument. Please explain. Also, use references, show your notes.
The only way to explain that is to provide an opposite example. Nobody can.
If 4% of the people control 90% of all the money just where is the money going to come from to pay for health care and food and homes to live in for the other 10%?
Seriously, besides jealousy from certain people, what is wrong with some people in our society having more money, which we VOLUNTARILY give to them in exchange for goods and services to BETTER our own life?
If someone doesn't like Jeff Bezos getting rich, don't shop at Amazon. Why on one hand do these people VOLUNTARILY enrich others, on the other hand, complain about the concentration of wealth?
Remember capitalist trade is win-win: every dollar we hand to the evil capitalist, we get back MORE than one dollar worth of goods and services. Nobody would knowingly conduct a trade if he is not getting what his money is worth.
I don’t mind people being rich as long as they pay their full fair share of taxes. The tax laws gave the rich great tax breaks; we were repeatedly told there would be middle-class tax breaks. Didn’t happen. So next we will be doing budget cuts do off set some of these ballooning deficits. I can’t imagine cuts will help middle class.
The U.S. hasn't had capitalism in action since at least 2008 with Too Big to Fail and the banker bailouts. The central bank has been heavily manipulating financial markets now for a decade, and just within the last 3 months has once again started a record amount of easing through hundreds of billions of dollars being pumped into the repo markets and $60 billion being purchased monthly in treasuries.
This is a far cry from capitalism.........
US has not had pure capitalism like ever. The 19th century may be as close as it gets.
In a pure capitalism, those too big to fail would fail and new companies would take over.
In a pure capitalism those too big to fail would NOT fail because they wouldn’t have the government forcing them to make loans to those who can’t pay! This whole crisis wouldn’t even start.
I don’t mind people being rich as long as they pay their full fair share of taxes. The tax laws gave the rich great tax breaks; we were repeatedly told there would be middle-class tax breaks. Didn’t happen. So next we will be doing budget cuts do off set some of these ballooning deficits. I can’t imagine cuts will help middle class.
What tax break is given to the rich but not to the middle classs?
What’s the fair share? Currently the top 10% pays 2/3 of federal taxes but the bottom 47% pays zero. Looks to me, 47% of people haven’t paid their fair share.
I don’t mind people being rich as long as they pay their full fair share of taxes. The tax laws gave the rich great tax breaks
Why do people believe that falsehood? Look at the CRS chart (Figure 2) on page 11, here. You're looking for the light blue bars, which shows the actual effective tax rate each income group pays.
Quote:
So next we will be doing budget cuts do off set some of these ballooning deficits.
Here's the REAL problem: 45% (62.1 million) of all US 1040 filers pay no federal income tax whatsoever. Making up a subset of that group are the 27% (37.3 million) of all US 1040 filers who pay neither federal income tax nor payroll tax (FICA).
One US 1040 is filed for each tax unit that is either:
Single
Single, Head of Household
Married, filing separately
Married, filing jointly
138 million US 1040s were filed for tax year 2018. Only 75.9 million of those US 1040 filers had a total annual federal income tax liability of $5 or more. That's why the US runs deficits and racks up national debt: insufficient tax revenue due to way too many US 1040 filers not having to pay, the low-income and many in the middle class.
Again, look at the CRS report chart to confirm exactly what I've said.
US has not had pure capitalism like ever. The 19th century may be as close as it gets.
In a pure capitalism, those too big to fail would fail and new companies would take over.
In a pure capitalism those too big to fail would NOT fail because they wouldn’t have the government forcing them to make loans to those who can’t pay! This whole crisis wouldn’t even start.
Pure capitalism doesn't work, it is inherently unstable. That's why no nation on Earth practices it.
You're right, the US was nearly pure capitalist in the 1800's -- and what a disaster it was. The country lurched through countless boom and bust cycles, and the nation spent more time in depressions and recessions than good times. The crashes were so bad that in the 1840's nine states defaulted and went bankrupt.
Regarding your comment on the 2007 housing collapse, the government did not force banks to make most of their bad loans. No government rule forced banks to hand out "no doc" loans nor negative amortization loans. Greedy banks did that all on their own. They figured out that they could make money risk free by flipping subprime loans to the mortgage market the day after they wrote them while pocketing the points.
The ONLY successful proven economic model in the world is the mixed economy, part capitalist, part socialist. Most of the socialism vs capitalism political arguments are a pointless waste of time. Capitalism needs government regulation and participation to dampen the excesses while the government needs the private sector to finance needed public services. They are co-dependent.
Location: Live:Downtown Phoenix, AZ/Work:Greater Los Angeles, CA
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Quote:
Originally Posted by lifeexplorer
How is that a problem? Don’t like the price, don’t buy the house.
What does this have anything to do with Jeff has more money?
Because "Jeff" drives up the cost of housing simply because he can pay more
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