> "Rarely in history has the cause of a major economic problem been so
> clear yet have so few been willing to see it."
The problem is there's way too many boneheads who, whenever money leaves = their hands, can't see any further than the very next person who ends up = with it, and who fail to understand that in a (properly) functioning = economy, it will multiply a bit and eventually all of it and then some = will come back to them... =20 Seemingly, there is a mental block that takes place with these = individuals; it renders them completely incapable of understanding where = "their" money originally came from and how it eventually came to be in = their possesion--almost as though they believe that, as a result of = "hard work", money magically precipitates out of the sky and falls to = earth, landing in their checking account.=20
And, when we try to vote the boneheads out of office, the two major parties give us a false choice. The up coming Presidential election is one such. We choose between the socialist Obama, versus the liberal Romney.
Christopher A. Young Learn more about Jesus
There are now so many boneheads that an economic collapse seems inevitable.
So, Jon, do you truly believe the liberal talking points which are outlined in this article? If so, I feel sad for you. The liberals I know are out of touch with reality, and are absorbed with class envy, anger, and hatred.
A quick test. What is the first thing that comes to mind when you read the words Ronald Reagan" ??
The main "talking point" is that the middle class is going broke. There isn't anything "liberal" about it, it's the simple truth. The question is what to do about it. The last time we were in this mess the Japanese pulled us out of it by attacking Pearl Harbor. Osama did his best but it wasn't enough.
That is just plain silly. More workers means more money earned and more money to spend. One person's spending is another person's income.
The problem with the US economy today is that the private sector can't afford to purchase it's own production because so much of private income is being diverted to servicing private debts.
Yes so how did that all come to pass?
The US economy got bloated, fat and less productive from excessive private sector borrowing. From 1998-2008 the private sector borrowed $25 trillion. That was a sum equal to 25% of GDP for that period. In 2007 alone the private sector borrowed $4.3 trillion. That was 30% more than the total national income that the private sector borrowed and spent in 2007.
Then in 2008 it all came to a grinding halt and that fantastic money making machine of private borrowing went into reverse and started to destroy the bloated money supply that it had spent 60 years to inflate.
Back in the 50's every dollar that the private sector borrowed came close to creating $1 dollar in new productive capacity. By 2007 every dollar borrowed was matched by only $0.15 of increased economic production.
So where was the other 85% of the borrowed money going?
It went to inflated asset prices, like real estate and equities. It went to bloated government and corporate structures. It went to the financial sector, which was 2% of corporate profits in 1950, and grew to 40% of corporate profits.
And now the borrowing has stopped and you have enormous debt balanced against enormous bloat.
Wait until you try to get at your 401k money to spend. It won't be tax free then.
All investments are tax free. It is when you cash in the investment and turn it into spending income that the govt taxes.
And for the wealthy there is a huge tax incentive to liquidate investment rather than earn ordinary income from them.
That is what you imagine. When Congress tries to balance the budget and a depression that is worse than the Great Depression follows immediately, you will change your tune.
The simple fact is that private sector debt has put the US economy into a colossal depression. And when the govt stops borrowing the funds the private sector is no longer willing to borrow it will be all over but the shouting.