People think stimulus is better for them but it only benefits the wealthy
Wealth disparities have widened over time. In 1989, the bottom 90 percent of the U.S. population held 33 percent of all wealth. By 2016, the bottom 90 percent of the population held only 23 percent of the wealth. The wealth share of the top 1 percent increased from about 30 percent to about 40 percent over the same period.
Central Bank’s globally sought to stoke economic growth by inflating asset prices. Unfortunately, the consumption of the benefit was only those with savings and discretionary income to invest.In other words, the stock market became an “exclusive” club for the elite.While monetary policy increases the wealth of those that have wealth, the Fed mistakenly believed the “trickle-down” effect would be enough to stimulate the entire economy.It hasn’t.The sad reality is that these policies only acted as a transfer of wealth from the middle class to the wealthy. Such created one of the largest “wealth gaps” in human history.In 1990, incomes alone were no longer able to meet the standard of living. Therefore, consumers turned to debt to fill the “gap.”However, following the “financial crisis,” even the combined income and debt levels no longer filled the gap. Currently, there is almost a $2150 annual deficit facing the average American. Of course, if the Fed’s actions to inflate asset prices worked, then wealth distribution would be more even. Importantly, we wouldn’t see more than 50% of Americans unable to meet a $500 emergency.Allow capitalism to take root by allowing corporations to fail and restructure. A needed process after spending a decade leveraging themselves to the hilt, buying back shares, and massively increasing executive wealth while compressing workers’ wages. Or, Continue to bailout “bad actors” and further forestall the “clearing process” that would rebalance the economy and allow for increased future organic economic growth.
Central Bank’s globally sought to stoke economic growth by inflating asset prices. Unfortunately, the consumption of the benefit was only those with savings and discretionary income to invest.In other words, the stock market became an “exclusive” club for the elite.While monetary policy increases the wealth of those that have wealth, the Fed mistakenly believed the “trickle-down” effect would be enough to stimulate the entire economy.It hasn’t.The sad reality is that these policies only acted as a transfer of wealth from the middle class to the wealthy. Such created one of the largest “wealth gaps” in human history.In 1990, incomes alone were no longer able to meet the standard of living. Therefore, consumers turned to debt to fill the “gap.”However, following the “financial crisis,” even the combined income and debt levels no longer filled the gap. Currently, there is almost a $2150 annual deficit facing the average American. Of course, if the Fed’s actions to inflate asset prices worked, then wealth distribution would be more even. Importantly, we wouldn’t see more than 50% of Americans unable to meet a $500 emergency.Allow capitalism to take root by allowing corporations to fail and restructure. A needed process after spending a decade leveraging themselves to the hilt, buying back shares, and massively increasing executive wealth while compressing workers’ wages. Or, Continue to bailout “bad actors” and further forestall the “clearing process” that would rebalance the economy and allow for increased future organic economic growth.
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DollarsmakeSense : We got to do something to redistribute all that wealth, but also close the income gap also. Higher taxes on higher income brackets, increase minimum wage then tie it to inflation would solve that. At least for a decade or two. Lower the corporate tax, make it easier and cheaper to start and run a business too. Higher taxes would create incentives to expand businesses, higher more employees, and pay them better to avoid falling into a higher tax bracket. We need to go back to a pre-1980s tax structure. One with a lot more brackets that go up much higher. There's nothing wrong with 70% tax rate once you reach over a billion dollars.
Mcsnacks H Tupack OP : But the ones who make the tax laws are the rich so they always make sure to put in a way to get around paying any tax. I know this for a fact. Did it for 20yrs. Most of the rich pay less than the average American in taxes. They have S-corporations they funnel money thru that keep them from ever being taxed.