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Wanna See The 'Trick' In Trickle-Down?
Submitted by Thad Beversdorf via FirstRebuttal.com,
In the chart below I’ve indexed real median personal income against real corporate profits (before tax w/o adjustments) to the beginning of 2009, the point at which central bankers implemented trickle down economics to rescue Americans from the largest gov/banking policy induced disaster in the history of the world. Let’s have a look at the results of the bankers trickle down strategy….
Go figure eh…. Anyone think moar QE is the answer?? We just won’t know unless we keep on trying I suppose… says Ms. Yellen and the Business Roundtable (click to see many of the very faces of those that reached their shifty little hands into the ass of the golden goose and pulled out trillions of printed dollars but left trillions in debt obligations for your grandchildren).
Anecdotally, for those of you that rarely leave the city, I was in a small town in Indiana not too long ago. I stopped to get a bite to eat and prefer local diners to fast food. Problem was almost every shop in what would have been a quaint downtown was boarded up. I asked a lady if there was still a place to get a bite to eat in town. She pointed me to the last shop at the end of the row. I went in, sat down, ordered some food and couldn’t help overhearing the guys talking at the table next to me.
“I’m really hoping to get onto the second shift soon”, says one guy. The other guy responds, “yeah me too man we (family) could really use that extra $0.75 an hour”.
I immediately texted some broker buddies in Chicago and New York and relayed the conversation I’d just overheard, with the caption…. “I just overheard what everyday Americans are talking about….”
The reality is that while most folks who are reading this may find it difficult to empathize, the vast majority of Americans are scratching for any extra $0.75 an hour they can find. At the same time CEO’s and highly paid bureaucrats continue to tout policies that have enriched themselves beyond the wildest dreams and comprehension of the average American. Yet they promote these policies as being in the best interest of the working class.
And although you may be comfortable with your current financial sector job it to is but a fleeting position. Today you are fine but tomorrow you too will be scratching for whatever cash you can find. There are very few who will not be impacted by what’s already been set in motion.
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https://www.youtube.com/watch?v=3cQNkIrg-Tk
Why is it so hard to just "FOLLOW THE MONEY". In 7 years of non-stop printing, who got it? It's easy to see who did NOT get it: the middle class, mainstream America. The money was siphoned off of generations of Americans and secreted to the global bankers. Smellen continued the policy, blatantly yesterday by continuing to rob American savers to enrich global bankers. WAKE UP!
...and the party never ends, mazel tov!
"Yet they promote these policies as being in the best interest of the working class."
Not that I am a friend of the 'corporatocracy' or anything, but... Can someone explain to me - in clear/concise terms, what constitutes the 'working class'...?
- Is it a particular wage/salary amount?
- A particular field of work?
- A particular political affiliation?
- If a man has his own business, makes $150k/year, and works 100 hours per week, is he a member of the 'working class'?
- Likewise, if a man puts himself through school and ends up with directors position 4 years later, while working 80 hours per week, is he a member of the 'working class'?
- Police & firemen can make upwards of $200k/year. Are they members of the 'working class'?
- Are these questions valid...?
Just who are these 'working class' people anyway? I need to put a face on them - some real context I can wrap my arms around. Is that possible, or is this term simply an extension of Ted Kennedy's arm from the grave...? Seriously.
I've always asked same question; particularly for a fave Democratic jingle 'working family.' What does that even mean? Sitting here thinking about it, I would take stab this way:
1. Primary income derived from/in private sector, or public job directly dealing with 'customers.'
2. Primary income is benny-taxed (SS, Medicare, work comp, etc.), whether via making payroll or earning a wage.
3. Primary income is even or less than benny-tax deduction ceiling.
That, I think, identifies the true demographic terms such as 'working class' or 'working family' grope for.
Go ahead, Consuelo, fuck yourself. . .
I'll tell you what I consider it: People who work for a living, who don't have a lot (or any) money locked up in the stuck-market or other vehicles of speculation. People who basically work paycheck-to-paycheck, not having much money left over to save for an emergency fund, let alone "invest," in stocks.
Working class and middle-class isn't a hard and fast number, either, I think. But you'll definitely know it because we're too "rich" to get handouts and EBT cards, but too "poor" to coast through live with an on-call accountant and/or lawyer available and a summer home for us and a separate one for our dogs.
We work for a living, now more than ever with two jobs (that's my case), and do just like the guys above in the diner, we eke out the best we can on "$0.75" an hour more, if we're lucky. We await the day we're going to H1B1'd, Mexican day-labored, automated, "rightsized," or outsourced away--at which point, like the working-class we are, we'll look for another job(s) to make end's meet and sock away a few bucks to make it through if we can.
It also is in the attitude--the guy making $150k a year very well could be considered working-class by me, if he isn't ostentatious about his wealth and doesn't get where he is by stepping over others as a matter of course. Blankfein, Bernanke, Yellen, and the usual suspects would NOT qualify--they're as greedy and dirty as they come.
Excellent.,spot on. Two brothers, one makes 200k per year in tech field, other brother works 2 jobs, as CNC programmer, parts designer, quality control, he makes 55k in one job, 20k in the other. If wages in his field had not been stagnant for 20 yrs. He would not need the second job. working middle clasx blue collar jobs are diappearing, but because second brotherhas hard to replace skill sets, 200k brother could see his job outsourced tomorroww. Working class, aka middle middle class now needs 2 jobs to maintainn middle class life. Neither is in huge dbt, both did all the right things. But while they did, the elute was busy selling them out, in a rush to accumulate as much as possible, to hell with everyone else. If that is the model, sooner or later it will implode
"Not that I am a friend of the 'corporatocracy' or anything, but... Can someone explain to me - in clear/concise terms, what constitutes the 'working class'...?"
If you are working to pay the rent or the mortgage, to put food on the table you are a worker. You are classed as a worker. You are working class. If you own the factory or the bank and live off the earnings of your capital investment without actually doing any labor you are probably a member of the ruling class.
See how simple it is?
It's an either or situation. We talk gladly partake in the delusion there is a grand hierarchy of possible layers we can fall into, but these are artificial. Only the great divider remains consistent if you look back over the last century. The one that separates the 1% from the rest. Either you must work to live or you don't need to work.
Middle class is an ideal, a marketing term, a category for politicians and academics to bandy about. It is barely anything more than an illusion in this world. If the bottom fell out of the financial system tomorrow, I mean the predicted crash, it would effectively finish 'the middle class'. Then you would see people fall on one side or the other.
This will continue as long as the top 1% can keep the bottom 10% fed and sedated with the middle's tax dollars, and Fed money printing. But it will end; and end badly. And bloody.
fascism
and 90% of people have no clue
and 90% of them just don't give a fuck to know
Pardon the off-topic, but I wish to share a story I read in the San Jo Mercury while waiting for my sandwich this afternoon. It is really sad, in every perspective. What the offended don't realize, is that future generations of children are all gonna be like this (or similiar or worse). Offer your highest prayers to your god of choice - what comes ahead will test the human spirit.
http://www.mercurynews.com/health/ci_28832426/sunnyvale-neighbors-sue-ba...
what makes me sick and utterly apalled and ashamed of the current USA culture are the planned parenthood motherfucking nazis and the people of this country who are either ambivalent or worse, actually supportive - sick, evil motherfuckers - fuck them !
Future generations of children are all gonna be autistic?
I read the article and am amazed this could not be resolved outside of the legal system. However I have also encountered unreasonable self-centered people who could care less about others and have no interest in conflict resolution.
Thats typical for Northern CA liberals. There all for peace love and harmony and helping the down trodden until it impacts property values. Then the lawyers come out.
"Future generations of children are all gonna be autistic?"
It's not looking too good. What is causing it is still up for debate the fact that it is exploding isn't challenged.
http://www.webmd.com/brain/autism/news/20091218/autism-jumps-57percent-in-just-4-years
http://www.cbsnews.com/news/vaccines-and-autism-a-new-scientific-review/
Right down the street from me Gandalf --
Not to sound rayciss or anything but... I can say with reasonable accuracy that there is a 'cultural' element at work here...
From the link:
This where people get above asking price for real estate ... and spend $1,000 a month to live in a 100 sq ft. space.
Something here doesn't compute.
Skate, it's a cruel world that is only becoming more so.
When I grew up back in the late 70's, the kids would've solved this by kicking that kid's ass a few times so he'd learn not to be a dick. Now, kids are so cowed by anti-bullying dogma (and the runaway litigiousness in the US), they can't police this shit themselves.
Ahhh, the late 70's really was a cool time to grow up...
P.S. We had a kid in our upper middle class suburban neighborhood who started bullying younger kids and doing shit like brandishing bullets at the bus stop (this was in Elementary School) to scare the younger kids. I warned him to stop, but he continued to escalate. So, one afternoon we got off of the bus and I beat the living shit out of him. Straddled him MMA style and knocked his front teeth into his throat. His Father was an attorney! There was no lawsuit. LOL.
Damn, probably a HMO.
"Um... your child has atrocious acne and it is damaging our home values... we don't believe in eugenics but now that our imaginary equity is perceived to be at risk we think you should have him euthanized."
When I was in 2nd grade my friend and I got sent to the principal and paddled repeatedly for laughing at this possibly special kid because this kid would lay on his stomach and rub one out during story time (turned out later the principal was a pedophile but luckily he was into boys because I saw him a lot). It was rather strange watching a kid jack off every day and have the teacher just ignore it. I didn't feel we got a fair shake in that case but that CA story is just rediculous.
And I'm sure when the time arrives the prezzzidente will clame he didn't know about this chart!
The rich create jobs and a $15.00 minimum wage will collapse the economy 2 myths permanently touted and believed in the USA
Not sure if $15/hr min wage will collapse the economy. What it will do, however, is keep the 20 million plus unemployed youth from ever finding a job. And in an environment where minority youth unemployment is rapidly approaching 30% (probably a low number), $15 could easily push that number to 50%. Any society with youth unemployment at those levels, will not remain a peaceful society for long.
and if those trillions had of gone into the real economy instead of markets and zombie banks the USA would of been a superpower for another hundred years with little or no unemployment instead of swirling the bowl about to go through the s-bend
A $15.00 per hour minimum wage will effectively knee-cap young people from getting entry level jobs and gaining experience to move up the ladder as it were. But wait! All is not lost! Your government in its infinite wisdom will provide these articifially crippled young people with virtual crutches in the form of social welfare.
In the chart below I’ve indexed real median personal income against real corporate profits (before tax w/o adjustments) to the beginning of 2009, the point at which central bankers implemented trickle down economics to rescue Americans from the largest gov/banking policy induced disaster in the history of the world. Let’s have a look at the results of the bankers trickle down strategy….
If you're going to institute something stupid like trickle anything, do it in a way that has a good effect.
Trickle down gives the money to people at the top of the food chain ... and it just stays there.
Alternatively, "bubble up" gives it to people at the bottom of the food chain. It eventually all goes to the top but goes through more hands in the process.
The real solution is to just institute a properly managed MOE process. One where inflation is guaranteed to be zero, all the time and everywhere. Where money is freely created by traders getting trading promises certified and destroyed by delivering on those trading promises. Where defaults are monitored and met by equal interest collections immediately, thereby guaranteeing zero inflation.
I see a lot of big words which not being a trader don't mean a whole lot except for the concept of Inflation.
So... what is your solution. I know you probably posted it before somewhere.
But yes. QE strikes me as another trickle down program which only leads to hoarding.
Been musing over the meaning of why QE program planned to lower velocity, why QT Theory could predict this, and why we would not want better velocity for a recovery.
NIRP is obviously just gouging households who always bear the taxes and fee increases, but could be a Psy-Op to condition people to obey the state and take them to the next level of stupid or criminal legislation and globalization.
16 years of LIRP/ZIRP with no growth in good full time jobs speaks for itself. If the economy is slow and has much weakness then the FED can not do anything to address these problems after 16 years of LIRP and 22 years of Globalism.
I see a lot of big words which not being a trader don't mean a whole lot except for the concept of Inflation.
Everyone is a trader. Almost everyone has created money at many times in their lifetime. Any time you buy someting by making time spaced payments, you are creating money.
So... what is your solution. I know you probably posted it before somewhere.
First, know what money is ... always has been ... and always will be: Money is "a promise to complete a trade".
This is obvious from examining trade: (1) Negotiation; (2) Promise to Deliver; (3) Delivery. With simple barter (2) and (3) happen simultaneously on-the-spot. Money allows (2) and (3) to happen over time and space. Thus money is "obviously" a promise to complete a trade.
Traders create money by making delivery promises and getting them certified. On delivery they return the certificates which are destroyed. In the mean time, the certificates (really just records) circulate as the most valued object of simple barter exchange. They make up one side of virtually every trade. If the delivery fails (i.e. default), the orphaned certificates are immediately reclaimed through like interest collections. This "guarantees" zero inflation of the MOE by the operational relation:
INFLATION = DEFAULT - INTEREST = zero.
Money is most highly valued in a properly managed MOE process because it has these attributes:
A properly managed MOE process is naturally stable. It has an automatic negative feedback error term of DEFAULT - INTEREST which is driven to zero. There is no cascading effect from DEFAULT. There is no business cycle.
If we had a properly managed MOE process, monetary policy would not be necessary. If money was needed, traders would see clear to delivery on their trades and they would create it.
As it is now, money management is an open loop process with governments and banks in the loop. This allows governments to finance themselves with INFLATION. It allows banks to carry on their highly profitable farming operation through manipulation of INTEREST collections and money creation.
Capitalism is also a problem. It is absolutely ridiculous to think that someone must first save before someone else can make a trading promise ... yet that is exactly what capitalism requires in practice (at least for the non-elites among us).
Traders everywhere would love the process I describe. It would remove great uncertainty and distress from the trading process. Banks and governments would hate this process. It would eliminate their fraudulent practices.
Speaking of Corporate Profits and Taxes interesting looking at recovery from the Recession between Individual Tax Revue & Corporate Tax Revenue. I may not be as well read as others. Maybe someone can explain how Individual Taxes took a Dive, then recovered but Corporate Taxes Did not???
Corporate Income Taxes Receipts 1998 = $ 188.7 Billion
Corporate Income Taxes Receipts 2002 = $ 148.0 Billion (Recession)
Corporate Income Taxes Receipts 2006 = $ 353.9 Billion
Corporate Income Taxes Receipts 2007 = $ 370.2 Billion
Corporate Income Taxes Receipts 2008 = $ 304.3 Billion
Corporate Income Taxes Receipts 2009 = $ 138.2 Billion (Recession)
Corporate Income Taxes Receipts 2012 = $ 242.3 Billion
Corporate Income Taxes Receipts 2013 = $ 273.5 Billion
Individual Income Taxes Receipts 1998 = $ 828.6 Billion
Individual Income Taxes Receipts 2002 = $ 858.3 Billion (Recession)
Individual Income Taxes Receipts 2006 = $1.044 Trillion
Individual Income Taxes Receipts 2007 = $1.163 Trillion
Individual Income Taxes Receipts 2008 = $1.146 Trillion
Individual Income Taxes Receipts 2009 = $ .915.3 Trillion (Recession)
Individual Income Taxes Receipts 2012 = $1.132 Trillion
Individual Income Taxes Receipts 2013 = $1.316 Trillion
Individual Income Taxes Receipts 2014 = $1.395 Trillion
- Corporate Taxes did not Recover till 2014 or maybe not yet in 2015 depending on how conservative you are.
- Corporate Income Taxes Receipts 2014 = $ 320.7 Billion
If you stuff money in the ventilation system, but shut off all the vents below the top floor, none of that money is going to get to the mail room.
My 30yr old daughter wrote "I work too hard to live this poor." You just showed me why.
Boo hoo. Tell her to let us know when her masters start feeding her Blue Buffalo Freedom Adult Beef Dog Food!
Welcome to America where only the Zuckerbergers get to eat steak!
http://www.chewy.com/dog/blue-buffalo-freedom-adult-beef/dp/111950
Or burn $1000 firewood:
http://www.cbc.ca/radio/thisisthat/canadian-entrepreneur-finds-internati...
Trickle down as in the counterfeiters piss on everyone from their ivory towers.
Why can't they lie and make us feel better too. Are they stupid.
Gee, wonder if this has anything to do with it:
http://static3.businessinsider.com/image/4fd2455c6bb3f7027e000001/income...