Under Democratic Policies The Rich Get Richer

[elektra]

anyone can actually learn about economics with some effort

You have yet to contribute content to the discussion. At least in the posts I have commented on.

 

[elektra]

Higher rates make middle class purchased more expensive, and that phenomenon tends to cause the middle class to buy less shit, which tends to make sellers sell less shit, which eventually causes prices to fall.

But obviously the Fed hasn't got any handle on commodities (stuff like food and mined minerals) and housing.

So, perhaps Milton Friedman didn't have it all figured out. (There are still Friedman videos on youtube if you've any interest in monetary theory and economics)

Yet, you linked to a person that praised Milton Friedman and is a student of Friedman.



Sounds like you are the one that is confused and have not figured it out.

 

[Robert W]

and the poor get poorer. Every time the left try to work on wealth inequality, social justice and the like, it backfires. Voters are certainly noticing this under Biden and are willing to hold their noses and vote for Trump. Here is the proof:

US consumers show the Fed its backward problem with high rates: Morning Brief

Consumer confidence rebounded in May, but there are signs this data is being driven by wealthier consumers enjoying the spoils of high rates, presenting a new challenge for the Fed.

finance.yahoo.com

Here is the major problem with the poor. Frankly it is very unlikely this can change.
Lack of goal setting and this includes planning to make higher incomes.
Every person I have known long enough to understand why they are rich has shown the same movie to us all. The movie starts as a dream. As a poor person, that is all you have. Then the idea of a goal. Take going on a trip. Where would we all be if a trip was decided on to no particular place. We could not plan for it or get resources to make it happen. The Poor who get rich imagine a goal. And then the planning commences. And now they have the direction, they spend time causing the goal to be reached. Authors have shown so many ways to get rich legally it amazes me we still have poor people.

 

[Crepitus]

Artificially suppressing demand by making housing unaffordable is bad economic policy.

Actually it's a side effect. Partially attributable to the pandemic with a side order of interest rates (which are themselves attributable to the pandemic)

 

[elektra]

Actually it's a side effect. Partially attributable to the pandemic with a side order of interest rates (which are themselves attributable to the pandemic)

What is a side effect?

 

[Independent thinker]

Who told them to?

Fauci

Here is the major problem with the poor. Frankly it is very unlikely this can change.
Lack of goal setting and this includes planning to make higher incomes.
Every person I have known long enough to understand why they are rich has shown the same movie to us all. The movie starts as a dream. As a poor person, that is all you have. Then the idea of a goal. Take going on a trip. Where would we all be if a trip was decided on to no particular place. We could not plan for it or get resources to make it happen. The Poor who get rich imagine a goal. And then the planning commences. And now they have the direction, they spend time causing the goal to be reached. Authors have shown so many ways to get rich legally it amazes me we still have poor people.

I have been in management for decades and have owned my own business for over 20 years now and I can't count how many times someone who was poor had a chance to get ahead and they didn't take it. Many had advancement opportunities and didn't take them. Many others have had a chance to earn more money and didn't take it. And, I have seen many take the chance to earn more money to pay off some bills and then once the bills were paid off they went right back to where they were before, like it was some kind of a crime to have $1,000 in the bank. They get so used to living paycheck to paycheck they don't know how to live any other way, even when they options to do so.

Quick story. A long time ago I had a minimum wage employee working for me. She drove me crazy because she would call in sick once per week every week. I was thinking about firing her. One day she came up to me and told me she needed a raise because she couldn't make ends meet. I about laughed in her face and told her she could give herself a raise. She looked at me dumbfounded and then I told her if she just worked all of the hours she was supposed to work in the first place without calling in, she would earn $200 more per month than she was making then. She had this blank expression on her face and said, "I never looked at it like that" and walked away.

 

[initforme]

Since 2010 to be middle class it takes at least one spouse making 100 grand per year. Anything below is lower class.

 

[alang1216]

Most democratic policies actually hurt the middle class. Democrats have been attacking the middle class for decades. A lot of it has to do with attacking businesses. When attacking businesses, the super rich take a hit but it is the small businesses owned by the middle class who are ravaged by Democratic policies. They have a socialist goal of wiping out small businesses so that only the mega corporations are left, of which they want to dictate to those remaining mega corporations with the policies they want. The left can't do this with all those damned mom and pop businesses in the way so just get rid of them. You should refer back to post #1.

Exactly which Dem policies have done this ravaging?

 

[elektra]

Exactly which Dem policies have done this ravaging?

Printing money

 

[initforme]

The economy thrives best when employers have to compete really hard to find employees.

 

[Independent thinker]

Exactly which Dem policies have done this ravaging?

Everything that attacks businesses, particularly fighting for and passing wage increases. The richer companies can absorb it because they are, more or less, monopolies while most small businesses get caught in the crossfire.

 

[Independent thinker]

The economy thrives best when employers have to compete really hard to find employees.

That is just plain bullshit. You should have said employee pay thrives best when employers have to compete really hard to find employees. No wonder your screen name is "initforme". You can't think past just yourself.

 

[Dont Taz Me Bro]

Fauci

And who did Fauci work for? Who turned the pandemic protocol and guidelines over to Fauci? Who put him up on stage over and over to give press conferences?

How long are you going to keep lying about this when it makes no sense at this point?

 

[Independent thinker]

And who did Fauci work for? Who turned the pandemic protocol and guidelines over to Fauci?

If you recall, Trump was against Fauci for destroying our country and the democrats all sucked up to him like he was a god.

 

[Dont Taz Me Bro]

If you recall, Trump was against Fauci for destroying our country and the democrats all sucked up to him.

As you recall, Trump was the one following his guidance and putting him up there to speak the press and give direction to the country.

Are you done with the fucking lies now? It's just embarrassing at this point.

 

[initforme]

That is just plain bullshit. You should have said employee pay thrives best when employers have to compete really hard to find employees. No wonder your screen name is "initforme". You can't think past just yourself.

There's an issue with employee pay going up? I'm sure employees agree. Lol

 

[Independent thinker]

There's an issue with employee pay going up? I'm sure employees agree. Lol

Actually, they don't. Many have lost jobs because of increases in pay.

California's $20 Fast Food Minimum Wage Law Is Already Having Disastrous Unintended Consequences

Many have seen their hours reduced—or have lost their jobs entirely.

reason.com

 

[task0778]

and the poor get poorer. Every time the left try to work on wealth inequality, social justice and the like, it backfires. Voters are certainly noticing this under Biden and are willing to hold their noses and vote for Trump. Here is the proof:

US consumers show the Fed its backward problem with high rates: Morning Brief

Consumer confidence rebounded in May, but there are signs this data is being driven by wealthier consumers enjoying the spoils of high rates, presenting a new challenge for the Fed.

finance.yahoo.com

The link in the OP suggests that the higher interest rates benefit the rich more than the poor, but lower rates will benefit the rich even more cuz borrowing money is cheaper and leads to more investments IMHO.

"These folks [rich] want nothing more than for rates to stay high."

"Wealthy households right now can earn upward of 4.5% in a high-yield savings account"

I think that's BS. Rich people are not satisfied with a measly 4.5%, they want a much high ROI. They want lower rates so they can invest in new startups or expand existing businesses.



"The simplified theory behind raising and lowering interest rates is straightforward — lower rates help the economy grow faster, and higher rates slow the economy down. The last 18 months of US economic experience, however, make the second premise harder to accept right now."

The problem here is that there's no way to tell what our economic growth might have been if the rates had been lower over the past 18 months. But the Fed didn't raise rates to help the rich guys get richer, they did it to restrain the growth of inflation. And BTW, economic growth over the last 18 months has not been all that good.



"All of which tracks with the idea JPMorgan's Jack Manley set forward last month that high rates may be the source of persistent inflation and that the Fed might have a better shot at squashing price pressures by cutting rates rather than keeping them high."

IOW, let's reduce inflation by reducing interest rates. Uh, no. To suggest that higher interest rates fuels inflation is absolute bullshit.

 

[alang1216]

Printing money

You're thinking of the US Mint. If you mean US debt, how does that affect one group more than another?

 

[alang1216]

Everything that attacks businesses, particularly fighting for and passing wage increases. The richer companies can absorb it because they are, more or less, monopolies while most small businesses get caught in the crossfire.

Let me get this straight, if the goal is to help the middle class we should keep the wages they are paid, low? Not sure I follow the logic here.