Followed by 3
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In United States
Registered Apr 30, 2009
Reality's most recent comments:
- On 10 Dec 2013
5 Charts That Show A Growing Crisis For Renters In America Read more: http://ww,
Wonder how the numbers are collected. The charts may actually reflect the rising underground economy instead of anything else. Just like the mushrooming of Americans on disability (not actually disabled) due to government policies, the combination of high taxes, high minimum wages and government subsidies is driving many Americans to take on jobs that pay under the table (like day labor off the books) or even illegal (such as drug trafficking and prostitution) while using low legit income to qualify for government subsidy programs.
- On 10 Dec 2013
There is some merit to the thread master's observation. Here are some additional everyday instances of luxury purchase/consumption facilitating equality:
1. There are numerous different cuts produced when a cattle is carved up. The $15/lb fillet mignon and other expensive cuts let the cattle farmer and the butcher shop to sell the ground beef at only $3/lb. If all the meat of the cattle were ground up and sold as ground beef, in order to raise the same amount of revenue from the cattle. Those promoting the politics of envy may insist that the 5-to-1 ratio in dollar terms for the beef in the dinner plate represent inequality; what they fail to understand is that the 5x price is helping the rich to burn up their money more quickly so they wouldn't consume 5x as much beef in poundage terms; more importantly, the 5x price on some cuts is what makes the cheap cuts so cheap. Mandating only uniform ground beef can be produced from a cattle would result in much higher price of entry for those who can barely afford ground beef, hurting the poor not helping them.
2. Services like dry cleaning and house cleaning are everyday luxuries for the upper middle class; they literally create jobs that otherwise wouldn't be there at all. Luxury goods and services usually have a higher labor content . . . which obviously bids up the price for labor.
3. After the rich experiment with luxury goods and services at high prices (due to low volume and higher labor content, human labor being the most flexible form of capital), if the goods/service has general appeal, the production volume gets ramped and automation is introduced . . . then the goods/service becomes available to virtually everyone. Reference the history of the computer industry and the cellphones. Then the rich move onto some other luxury goods/service at their own expense. That's how standards of living improve over time as price deflation takes place.
- On 10 Dec 2013
U.S. exits GM stake in $10 billon loss for taxpayers,
But, you should be thinking about what would have been the cost if GM were allowed to fail--lost jobs (GM and suppliers), lost tax revenue, unemployment benefits, etc. Would it have been more than $10B?
That would be the price of fixing the problems that led to the bankruptcy; i.e. the GM capital structure and labor relationships that led to the inefficiencies and bankruptcy would have been removed, and the resources and human labor made available to other carmakers. Instead, the taxpayers were forced to cough up $10B or more for essentially a kick of the can down the road.
it's very easy for folks like Bob to claim that the financial system didn't need any bailouts AFTER it was bailed out. We'll never know what would have happened absent the liquidity injection, but if there was a 5% chance that the system collapses--is that a risk worth taking??
What if there is a 5% chance the sun won't rise if we don't sacrifice your first-born? Asking such question is committing fraud of the hypothetical. Banking will not cease to exist, so long as it is a necessary service. Some of the big banks would indeed cease to exist . . . turns out even one as big as Lehman getting liquidated did not result in much impact on the financial system. Swaps and derivatives are by definition zero-sum games. For every loser on a trade, there is a winner as his counter-party.