#OccupyWallstreet

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Bowfinger

Lifer
Nov 17, 2002
15,776
392
126
Behind most of the hapless lost souls showing up in the parks to freeze and accomplish next to nothing? No.

Behind those fools' continued funding? Yes, absolutely.

The only "fantasy" here is believing that such groups don't exist, and that they're not involved.
I don't suppose you can provide links to objective, credible evidence that "anti-American" sources are "behind ... funding" the OWS movement? In particular, I'm looking for evidence showing these "anti-American" sources are a substantial source of funding (since pretty much anyone can make incidental contributions that have no material impact on direction and goals).
So, any chance of getting those links?
 

ComradeBeck

Senior member
Jun 16, 2011
262
0
0
Are you going to keep trying to bleat on and on about links to OWS funding? Or are you going to realize that there are MANY factions that support and/or are part of it - some of which do in fact have an "anti-American sentiment"
http://www.workers.org/ duh.

How is WW anti-American? Because they question our foreign policies that are imperialist?

Or is it that they dare to question crony capitalism?

Poor CaD, using a shred of critical thinking is Un-PC to him.

Grow up fanboi.
 

Ninjahedge

Diamond Member
Mar 2, 2005
4,149
1
91
Some of us were opposed to ALL of the bailouts from the very beginning and sincerely wish they would have let the failures happen naturally.

The companies that would have failed got too big. If they failed that would have frozen assets and cost much more than the bailout.

These guys knew that and were therefore not worried about failing.

"If we suffer, you all suffer" was kind of their position.

All we've done with the bailouts is delay the inevitable.

Because they were incomplete, because of bickering on both sides. The companies should have been bailed out, with interest, and then additional regulations should have been put in place to help prevent this from happening again.

What did we miss? We did not charge extra for the money we lent (hell, some did not even have any insurance as to defaulting on full repayment!), and we changed very little, if any of the regulations that allowed it to happen in the first place.

This mystical "total reset" that people are calling for now? We could have been halfway there already, or close to it. Would it be complete chaos? Absolutely. But, that's going to happen anyway -- as I said, it's inevitable.

People would have died. We are not talking about not going on family vacation here ph....

The financial giants were playing to see who would blink first, but the risk was more than simply having to drink.

I guess the only benefit of the delay may be that it has given the smartest amongst us time to prepare...

That means nothing when you are part of the majority that lives in an area that relies on modern convenience like gasoline, power, and other resources.

Preparation sounds fine until you see what really happens. And no, I am not talking about you making your own log cabin with your bare hands and sitting there with other members of your neighborhood militia defending it. Straw man.

Even those of us who have saved most of what they have earned are in trouble if this really falls.
 

palehorse

Lifer
Dec 21, 2005
11,521
0
76
Are you going to keep trying to bleat on and on about links to OWS funding? Or are you going to realize that there are MANY factions that support and/or are part of it - some of which do in fact have an "anti-American sentiment"
http://www.workers.org/ duh.
"Workers World fights for a socialist society -- where the wealth is socially owned and production is planned to satisfy human need. That's also what workers around the world, from Cuba to China, have been struggling for. The U.S. rulers have spent trillions of our tax dollars trying to stop them in a global class struggle. WWP promotes international working-class solidarity, the right of every nation to sovereignty and self-determination, and militant resistance at home to imperialist interventions and wars."

Sadly, the WWP is just one of many such organizations that are currently collecting donations to keep these protests going...
 
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ComradeBeck

Senior member
Jun 16, 2011
262
0
0
But yeah, I can see how leftists don't see hating democracy is a "anti-American sentiment"

You are the one trying to discredit people exercising there Democratic right to speak up against tyranny, the very same right our forefathers gave their lives for in the trenches and battlefields acros the world.


You sir and not making a good case for even having a clue what America or Democracy is. Feel free to come back from la-la land anytime CaD.
 

Bowfinger

Lifer
Nov 17, 2002
15,776
392
126
Are you going to keep trying to bleat on and on about links to OWS funding? Or are you going to realize that there are MANY factions that support and/or are part of it - some of which do in fact have an "anti-American sentiment"
http://www.workers.org/ duh.

Sorry that facts offend you so, but he made a bold allegation and I'm asking him to support it. One reason OWS appears to have so much potential is that unlike the Tea Party, for example, it's agenda has not been driven by external deep pockets with ulterior motives (as far as we know). If his claim is accurate, it is significant and is certainly information I will consider. If he's merely flinging partisan innuendo, he should do the honorable thing and retract it.


Edit: re. your link, you really should have taken that Remedial Reading class I suggested so many years ago. It might have greatly reduced the time you've spent on P&N thrashing straw men and chasing red herrings. As I said before, "In particular, I'm looking for evidence showing these "anti-American" sources are a substantial source of funding (since pretty much anyone can make incidental contributions that have no material impact on direction and goals)." The idea that Workers World agrees with OWS, and may even have offered some support, falls far, far short of that.
 
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ComradeBeck

Senior member
Jun 16, 2011
262
0
0
"Workers World fights for a socialist society?where the wealth is socially owned and production is planned to satisfy human need.


Do you have a criticism of this? Or is it someone on TV/Radio said "BAD!"

I would love to hear your scathing criticism of a resource based mixed market economy of the future.

Please, share with us why we should continue down the road of the status quo of failed capitalism.

The USSR is gone, the cold war is long over, young people think you sound like MORONS,


-a bunch of irrelevant political soap opera haters from the distant past ranting/freaking out at clouds and ghosts of a past long gone with a giant stick up their ass

The modern conservative.
 
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CADsortaGUY

Lifer
Oct 19, 2001
25,162
1
76
www.ShawCAD.com
Sorry that facts offend you so, but he made a bold allegation and I'm asking him to support it. One reason OWS appears to have so much potential is that unlike the Tea Party, for example, it's agenda has not been driven by external deep pockets with ulterior motives (as far as we know). If his claim is accurate, it is significant and is certainly information I will consider. If he's merely flinging partisan innuendo, he should do the honorable thing and retract it.


Edit: re. your link, you really should have taken that Remedial Reading class I suggested so many years ago. It might have greatly reduced the time you've spent on P&N thrashing straw men and chasing red herrings. As I said before, "In particular, I'm looking for evidence showing these "anti-American" sources are a substantial source of funding (since pretty much anyone can make incidental contributions that have no material impact on direction and goals)." The idea that Workers World agrees with OWS, and may even have offered some support, falls far, far short of that.

Uh no. He responded to the statement of "anti-American sentiment". He is correct. The OWS "movement" is a collection of many different groups but to deny that some(if not many) involved don't hold an anti-american sentiment is just being naive.
So while you people can continue to believe that the OWS movement actually has legs - the rest of us will continue to see it for what it is - a rag tag bunch of groups with no cohesive message and no solutions. Everytime someone points something out with OWS, you apologists claim it isn't the movement's goal/statement/etc - well no shit it isn't ALL, but since there is no main message(other than class warfare hate the evil rich) you people will always have the plausible deniability card to play. So until there is a cohesive message - we'll pick off the supporting groups one by one and show them for who they are.
 

CADsortaGUY

Lifer
Oct 19, 2001
25,162
1
76
www.ShawCAD.com
You are the one trying to discredit people exercising there Democratic right to speak up against tyranny, the very same right our forefathers gave their lives for in the trenches and battlefields acros the world.


You sir and not making a good case for even having a clue what America or Democracy is. Feel free to come back from la-la land anytime CaD.

Uh, no where did I say they couldn't or shouldn't bang a drum as their "voice". I discredit the groups within OWS as they seem to be just the typical fringe leftist groups and others who have bought into the entitlement mentality.
 
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sm625

Diamond Member
May 6, 2011
8,172
137
106
Civil discourse is a thing of the past. Critical thinking has been all but eviscerated. There is no point in trying to reason with uneducated fools. The stupidity in this country must be cleansed before it allows something truly disastrous to take place. It will be cleansed one way or another. The most civilized way would be simple poverty and starvation. It is logical to assume that a people so fat lazy and stupid will lose the ability to sustain themselves. However, high tech weaponry makes that outcome problematic. but it is still generally the most likely outcome.
 

Craig234

Lifer
May 1, 2006
38,548
350
126
Civil discourse is a thing of the past. Critical thinking has been all but eviscerated. There is no point in trying to reason with uneducated fools. The stupidity in this country must be cleansed before it allows something truly disastrous to take place. It will be cleansed one way or another. The most civilized way would be simple poverty and starvation. It is logical to assume that a people so fat lazy and stupid will lose the ability to sustain themselves. However, high tech weaponry makes that outcome problematic. but it is still generally the most likely outcome.

The word 'cleansed' suggests dangerous sociopathic, de-humanized thinking - as in Germany 'cleansing' the population.

It might have some place as in 'cleansing our political system of the corrupt powerful interests', but you mean it in the sociopathic, murderous manner. You're a monster.
 

orbster556

Senior member
Dec 14, 2005
228
0
71

1: The divergence is created by the author estimating how incomes should have reacted. Without the formula used by the author, the chart has little probative value. Also, I fail to see how a service company or manufacturer becoming more productive necessarily funnels those benefits to financial institutions.

2: The increase in CEO pay has nothing to do with tax policy or deregulation as corporations have always been free to contract with individuals at whatever terms are agreeable to the two parties. All the chart does is demonstrate that CEO pay has increased; it fails utterly at demonstrating that such increases were the result of deregulation or changes in the tax code.

3: In the first instance, women entering the workplace was a double-edged swords in that it produced a much greater supply of potential workers; this increase in supply, without any immediate offsetting increase in demand, exerted a downward pressure of wages. Unlike the prior two charts, however, I do think there is something here. I would contend, however, that it is primarily the result of globalization, viz. the income beneficiaries of globalization tend to be the highly skilled (which, whether rightly or wrongly, are usually the wealthy). This is not to say that globalization has been a bad deal for the less well-off; specifically, the less well-off have benefited immensely from cheaper goods and services which are a direct result of the force of globalization.

4: This graph is rather meaningless without also referencing the average tax rates paid by all income brackets. Moreover, the CBO indicates that in 2007 -- the latest year for which figures were available -- the top 1% of earners paid 28% of all tax collected by the federal government (income, payroll and the like). Furthermore, the those making >1m pay taxes at a higher average rate for income tax purposes (23.3%) than those making less than 50k (7.2%) or those making 50-100k (8.9%). Finally, the 400 individuals paying an extremely low rate of tax probably do so because most of their wealth comes in the form of realized capital gains. Although it might be tempting to increase the cap gains tax rate, history would suggest this is not a prudent idea. Specifically, prior to 1979 -- the year in which the cap gains was reduced to its current level -- venture capital was seemingly moribund because the earnings derived from such activity were taxed so heavily. We, as a society, greatly benefit from VC -- think of how many biomed and tech companies rely on VC -- and I don't think it prudent to stifle the pace of innovation.
------------------------
With regard to the quip about 90% rate, allow me to c&p from another one of posts: I believe this is a common misconception that has been propagated, in part, through use of slightly misleading information. Specifically, it is true that under the Eisenhower administration the highest marginal tax bracket was 90%. This, however, deserves two qualifiers: 1) the income threshold for the highest bracket was any earnings in excess of 400k (the current IRC schedule uses 250k as the threshold); 2) If you adjust the 400k for inflation and the like, it is roughly 3.2-3.4m in 2011 dollars.

Obviously, there is a huge difference between having the highest marginal rate kick-in at 250k and at 3.4m. Moreover, it should be noted that tax receipts as a percentage of GDP were below the historical average of 18% from 1955-1960 (which constituted a majority of Eisenhower's 8 years)(http://www.heritage.org/budgetchartb...t-tax-receipts).
--------------------------------

5: To be clear: a housing bubble caused the crisis -- full stop. This 'number' has so many misstatements has they relate to monetary policy and the years leading up to F08, I almost shudder that the authors of the piece honestly believed the argument they advance here.

6: Banks need to get bailed out because a collapse of the financial sector would be infinitely worse than any hardship endured by 'Main Street'. This is not to say we shouldn't posit prudent reforms of the banking sector. The construction of this argument, however, sets out a false narrative that fails to take into account the disastrous consequences of not rescuing failing financial institutions (http://en.wikipedia.org/wiki/Bank_of_United_States)(http://en.wikipedia.org/wiki/Financial_contagion).

7: Although I agree money in politics is a problem, I don't know how to solve the problem without creating some other problem or committing some other wrong.

8: Again, Wall Street didn't cause people to lose their jobs. The bursting of the housing bubble did. I recognize the attractiveness of assigning responsibility for the ills of society to one group or profession. The problem, however, is that such simple explanations are, more often than not, incorrect and fail to adequately explain or describe complex and inter-related situations such as the American economy.

9: Although this is an unfortunate situation, there is no evidence presented suggesting that this the fault of the major Wall Street banks. Moreover, certain measures that I would assume are endorsed by the OWS crowd -- such as an extension of unemployment benefits -- are contributing to the rise of 'long-term' unemployment as it provides an incentive for the unemployed not to seek or take certain jobs. Alan Krueger, Obama's newest chairman of Economic Advisers, wrote, "the estimates of the elasticities of lost work time that incorporate both the incidence and duration of claims are close to 1.0 for unemployment insurance." In effect, the extension of unemployment benefits encourages longer periods of joblessness.

10: Whether banks were concentrated or smaller institutions, the rationale for saving them would have been all the same (http://en.wikipedia.org/wiki/Financial_contagion).
 
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bfdd

Lifer
Feb 3, 2007
13,312
1
0
Do you have a criticism of this? Or is it someone on TV/Radio said "BAD!"

I would love to hear your scathing criticism of a resource based mixed market economy of the future.

Please, share with us why we should continue down the road of the status quo of failed capitalism.

The USSR is gone, the cold war is long over, young people think you sound like MORONS,


-a bunch of irrelevant political soap opera haters from the distant past ranting/freaking out at clouds and ghosts of a past long gone with a giant stick up their ass

The modern conservative.

I have issue with it. Seems to me to much of what is preached for socialism is used to float the weak. I don't mean taking care of our elderly or ill or handicapped. I mean floating those who really just don't want to contribute jack fucking shit. I don't approve of that. I don't think we should force them to work, I don't think we should just kill them off, but we don't have to help them live. I also find very few people finding ways to make socialism and liberty work, that just doesn't fly with me.
 

Jhhnn

IN MEMORIAM
Nov 11, 1999
62,365
14,681
136
1: The divergence is created by the author estimating how incomes should have reacted. Without the formula used by the author, the chart has little probative value. Also, I fail to see how a service company or manufacturer becoming more productive necessarily funnels those benefits to financial institutions.

2: The increase in CEO pay has nothing to do with tax policy or deregulation as corporations have always been free to contract with individuals at whatever terms are agreeable to the two parties. All the chart does is demonstrate that CEO pay has increased; it fails utterly at demonstrating that such increases were the result of deregulation or changes in the tax code.

3: In the first instance, women entering the workplace was a double-edged swords in that it produced a much greater supply of potential workers; this increase in supply, without any immediate offsetting increase in demand, exerted a downward pressure of wages. Unlike the prior two charts, however, I do think there is something here. I would contend, however, that it is primarily the result of globalization, viz. the income beneficiaries of globalization tend to be the highly skilled (which, whether rightly or wrongly, are usually the wealthy). This is not to say that globalization has been a bad deal for the less well-off; specifically, the less well-off have benefited immensely from cheaper goods and services which are a direct result of the force of globalization.

4: This graph is rather meaningless without also referencing the average tax rates paid by all income brackets. Moreover, the CBO indicates that in 2007 -- the latest year for which figures were available -- the top 1% of earners paid 28% of all tax collected by the federal government (income, payroll and the like). Furthermore, the those making >1m pay taxes at a higher average rate for income tax purposes (23.3%) than those making less than 50k (7.2%) or those making 50-100k (8.9%). Finally, the 400 individuals paying an extremely low rate of tax probably do so because most of their wealth comes in the form of realized capital gains. Although it might be tempting to increase the cap gains tax rate, history would suggest this is not a prudent idea. Specifically, prior to 1979 -- the year in which the cap gains was reduced to its current level -- venture capital was seemingly moribund because the earnings derived from such activity were taxed so heavily. We, as a society, greatly benefit from VC -- think of how many biomed and tech companies rely on VC -- and I don't think it prudent to stifle the pace of innovation.
------------------------
With regard to the quip about 90% rate, allow me to c&p from elsewhere: I believe this is a common misconception that has been propagated, in part, through use of slightly misleading information. Specifically, it is true that under the Eisenhower administration the highest marginal tax bracket was 90%. This, however, deserves two qualifiers: 1) the income threshold for the highest bracket was any earnings in excess of 400k (the current IRC schedule uses 250k as the threshold); 2) If you adjust the 400k for inflation and the like, it is roughly 3.2-3.4m in 2011 dollars.

Obviously, there is a huge difference between having the highest marginal rate kick-in at 250k and at 3.4m. Moreover, it should be noted that tax receipts as a percentage of GDP were below the historical average of 18% from 1955-1960 (which constituted a majority of Eisenhower's 8 years)(http://www.heritage.org/budgetchartb...t-tax-receipts).
--------------------------------

5: To be clear: a housing bubble caused the crisis -- full stop. This 'number' has so many misstatements has they relate to monetary policy and the years leading up to F08, I almost shudder that the authors of the piece honestly believed the argument they advance here.

6: Banks need to get bailed out because a collapse of the financial sector would be infinitely worse than any hardship endured by 'Main Street'. This is not to say we shouldn't posit prudent reforms of the banking sector. The construction of this argument, however, sets out a false narrative that fails to take into account the disastrous consequences of not rescuing failing financial institutions (http://en.wikipedia.org/wiki/Bank_of_United_States)(http://en.wikipedia.org/wiki/Financial_contagion).

7: Although I agree money in politics is a problem, I don't know how to solve the problem without creating some other problem or committing some other wrong.

8: Again, Wall Street didn't cause people to lose their jobs. The bursting of the housing bubble did. I recognize the attractiveness of assigning responsibility for the ills of society to one group or profession. The problem, however, is that such simple explanations are, more often than not, incorrect and fail to adequately explain or describe complex and inter-related situations such as the American economy.

9: Although this is an unfortunate situation, there is no evidence presented suggesting that this the fault of the major Wall Street banks. Moreover, certain measures that I would assume are endorsed by the OWS crowd -- such as an extension of unemployment benefits -- are contributing to the rise of 'long-term' unemployment as it provides an incentive for the unemployed not to seek or take certain jobs. Alan Krueger, Obama's newest chairman of Economic Advisers, wrote, "the estimates of the elasticities of lost work time that incorporate both the incidence and duration of claims are close to 1.0 for unemployment insurance." In effect, the extension of unemployment benefits encourages longer periods of joblessness.

10: Whether banks were concentrated or smaller institutions, the rationale for saving them would have been all the same (http://en.wikipedia.org/wiki/Financial_contagion).

Oh, please, orbster. The housing bubble occurred because everybody in the chain, from mortgage companies up to and including Wall St, lowered standards and sold deceptive mortgage products to anybody with a pulse, creating false demand and high prices. They also flimflammed the system on the investment side, creating the illusion that asswipe was AAA paper. The Bush Admin was complicit, acting as cheerleaders and political exploiters rather than servants of the public trust.

Had Wall St maintained honest standards & the Bush Admin done their job as regulators, the housing bubble never would have occurred, even with the low rates set by the FRB.

Obfuscate all you want- the truth is as I've described.

Yes, the bailout, or something like it, was a necessity. The other obvious necessity, changing the rules so that it won't happen again in that or some other asset class, simply has not occurred and will not so long as Free Market Repubs occupy a blocking position in Congress.
 

orbster556

Senior member
Dec 14, 2005
228
0
71
The housing bubble occurred because everybody in the chain, from mortgage companies up to and including Wall St, lowered standards and sold deceptive mortgage products to anybody with a pulse, creating false demand and high prices.

I have already conceded in an earlier exchange -- with you I believe -- that securitzation contributed to the housing bubble. The bubble was building, however, long before the Wall Street banks got into the business of selling CDOs referencing residential mortgages. Seemingly ignorant to the history of financial bubbles, you seem to posit a causal chain between securitization and the housing bubble when no such financial innovation is necessary for bubbles to form.

I still don't understand the false demand part either but since you have avoided answering a few of previous posts, I doubt I'll get much clarification now.

The other obvious necessity, changing the rules so that it won't happen again in that or some other asset class

Were you given the power, what would be your solution?
 

Bowfinger

Lifer
Nov 17, 2002
15,776
392
126
Uh no. He responded to the statement of "anti-American sentiment". He is correct.
Reading is fundamental, Chapter 1 - He responded to it by alleging that "anti-American" sources are "behind ... funding" the OWS movement. When asked to support that claim, and specifically when challenged to show "anti-American" sources are a substantial source of funding (since pretty much anyone can make incidental contributions that have no material impact on direction and goals)," he mysteriously lost his bravado and started avoiding the subject. Now I don't know how human behavior works in CADWorld, but here in the real world, that strongly suggests he was full of it and his claim was a baseless attack.


The OWS "movement" is a collection of many different groups
Duh! You think? Did you figure that out yourself, or did you wait for the RNC talking points? It's a massive movement that's open to anyone. Having a diverse mix of people is a given.


but to deny that some(if not many) involved don't hold an anti-american sentiment is just being naive.
Reading is fundamental, Chapter 2 - Who? Give us links. Show us who is denying that some people involved may have anti-American sentiments (for sufficiently wing-nut definitions of anti-American, of course).

The issue, once again, is whether "anti-American" sources are a substantial source of funding (since pretty much anyone can make incidental contributions that have no material impact on direction and goals)." Anything less is meaningless partisan noise. There are KKK members in the GOP, but that doesn't mean the Republican agenda is set by the KKK. Or maybe you think it is? Bad example? That might explain your paranoia.


So while you people can continue to believe that the OWS movement actually has legs -
Reading is fundamental, Chapter 3 - "You people?" Really? Proving you wrong is like shooting fish in a barrel. Here is one of my previous comments, for example:
"I've got to say, from the tremendous knee-jerk derision and demonization some of you are dumping on these protestors, it seems like you must be scared shitless that these kids, in all their disorganized glory, may actually -- finally -- pose a well-deserved threat to the elite few that have systematically looted America over the last 30 years. You can play apologist to the status quo all you want, but they have valid concerns and unlike you, they've actually gotten off their over-indulged, middle-class asses and stood up to try to change things. I don't know if it's a flash in the pan or a movement with real legs, but at least they've shifted the debate away from all the usual phony wedge issues like gays and guns."
the rest of us will continue to see it for what it is - a rag tag bunch of groups with no cohesive message and no solutions.
Reading is fundamental, Chapter 4 - It's been explained several times that this is a dumb criticism. They don't need a cohesive message or a solution. They simply need to raise awareness and create pressure on those who have the power to effect change.

From Jhhnn, for example:
"Trying to put a handle where there isn't one, I see, then making assignments based on your own assumptions.

"OWS is at the suggestion gathering phase, rather than the proposal phase. I realize that's difficult for Righties to comprehend, given that their proposals come pre-packaged from the top down.

"They may never offer any concrete proposals at all, but rather leave it up to the participants & supporters to carry the messages to politicians through other avenues."
In short, not everyone needs to be told what to think.


Everytime someone points something out with OWS, you apologists
Apologists? Apologists for what, exactly? Being an apologist implies that one is rationalizing someone else's wrong-doing. Other than the occasional scuffle with police, what, specifically, has OWS done that's wrong? Are you one of those hypocrites who only supports Americans' Constitutional rights when you agree with them politically?

If anyone's an apologist, it's those of you who are acting as apologists for rampant corruption in the status quo. If you truly cared about America, you'd be cheering on the OWS crowd, hoping they reach that critical mass that might finally get our elected "representatives" off their fully-owned asses to start acting in the interests of Americans as a whole.


claim it isn't the movement's goal/statement/etc - well no shit it isn't ALL, but since there is no main message(other than class warfare hate the evil rich) you people will always have the plausible deniability card to play. So until there is a cohesive message - we'll pick off the supporting groups one by one and show them for who they are.
Ah, so you're moving the goal posts, trying to duhvert the focus to side issues you can attack instead of the overall OWS movement. Lame.
 
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Jhhnn

IN MEMORIAM
Nov 11, 1999
62,365
14,681
136
The bailouts of non-financial firms, like GM, might have been socialistic in nature but control or nationalization of a single firm is different from government control of entire industries. This isn't a question of opinion or degrees, merely fact.

As for the financial firms, the government temporarily intervened to resolve a liquidity crisis. Although I would argue that the government's first mistake was intervening to save Bear in the first place -- as it could have been properly wound-up -- it was proper for the central bank to serve as the lender of last resort after the fall of Lehman pushed the markets into a temporary period of irrationality. Serving as a lender of last resort is one of the principal functions of any central bank. This is the only way to control the contagion emanating from a failing bank or financial institution and ensure that a minor disruption does not produce a full bank-run on the entire banking sector.

Just to be clear, central banks, whether operating under a socialist or capitalist regime, ought to serve this function to ensure there are no shocks and runs on financial institutions.



And what did the New Deal produce for the average person? The measures that the Roosevelt administration adopted to stimulate demand -- including billions in government spending and wholesale government intervention in the economy through promulgation of new regulations -- were, by and large, inefficacious. Specifically, the American economy did not get back to 1929 levels during Roosevelt's first two terms (i.e., before American involvement in WWII). Specifically, the Dow Jones didn't return to its pre-crash levels, total hours worked by the American labor force was 20% lower in 1939 than in 1929 and unemployment rarely dipped into single-digits before the outbreak of WWII. Indeed, the average person was worse off vis-a-vis their 1929 standards of living when taking into account the inflation caused by increased spending.

And, for the sake of clarification, the Great Depression was not a result of the failure of capitalism. To be sure, the stock market failure of 1928 was caused by the bursting of a stock bubble (which, like the housing bubble of 2000-2008, was fueled by overly cheap credit). Rather the Depression proper was the result of the Fed adopting deflationary monetary policies and its unwillingness to step in and save Bank of United States in 1931 (relating back to my earlier point about the role of the central bank to be the lender of last resort). It was this failure of government -- not of capitalism -- that transformed a modest downturn into a full out depression. Moreover, the measures adopted by government did little to improve either the general economy or the lot of the ordinary person. It was only WWII, which was an external event, that re-invigorated the economy.

Nice bit of revisionist history mixed with fact. While I'll agree that the FRB of the Depression era did the wrong things, the need for them to do anything extraordinary, like become the lender of last resort, flood financial markets with liquidity, was the result of the massive collapse of financial capitalism, of the bubble economy of the 1920's.

The notion that the New Deal didn't positively affect the lives of millions of Americans is utter garbage. The WPA & others employed millions who would otherwise have been unemployed, and created an enormous amount of infrastructure still in use today.

Some of those innovations carried beyond WW2 & provided the framework for the rise of a broad middle class we have today-

http://en.wikipedia.org/wiki/New_Deal

http://www.asdk12.org/staff/miller_...eat Depression/New Deal Alphabet Agencies.pdf

For my own elucidation, how much do you think the rich (say top 1%) pay, as a percentage, of the overall revenues collected by the government through imposition of an income tax? Furthermore, what do you think is the average tax rate they pay and what do you think is the average tax rate for individuals earning less?

I have the numbers in several forms-

http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=456

http://www.taxfoundation.org/news/show/250.html

Most interesting of all-

http://motherjones.com/politics/2011/02/income-inequality-in-america-chart-graph

Tax rates for the top 1% have fallen by a third, even as their share of income more than doubled since 1980. It's not how much of the govt's revenues they contribute, it's what they have after they do, and they've done disproportionately well, very well indeed.
 

Jhhnn

IN MEMORIAM
Nov 11, 1999
62,365
14,681
136
I still don't understand the false demand part either but since you have avoided answering a few of previous posts, I doubt I'll get much clarification now.

Real demand for real estate is based on borrowers' ability to make the payments, something traditionally enforced by lenders. Those who realistically couldn't make payments for whatever reason were simply denied loans.

The desire of people to own is always higher than than the ability to pay, something that hasn't changed since forever.

Any lending above the real ability to pay creates false demand, and the industry was rife with that during the Ownership Society. It's the driving force behind any economic bubble, and ultimately the reason the bubble pops.
 
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