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Post by teri on Dec 18, 2013 12:43:24 GMT -5
www.huffingtonpost.com/2013/12/17/income-inequality-economy_n_4460725.htmlA key source of the economists' concern: Higher pay and outsize stock market gains are flowing mainly to affluent Americans. Yet these households spend less of their money than do low- and middle-income consumers who make up most of the population but whose pay is barely rising. "What you want is a broader spending base," says Scott Brown, chief economist at Raymond James, a financial advisory firm. "You want more people spending money." Spending by wealthier Americans, given the weight of their dollars, does help drive the economy. But analysts say the economy would be better able to sustain its growth if the riches were more evenly dispersed.
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Post by raybar on Dec 18, 2013 16:14:24 GMT -5
This is so obvious that it shouldn't need to be said.
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joan
Member
Posts: 1,407
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Post by joan on Dec 18, 2013 16:55:04 GMT -5
This is so obvious that it MUST be said---Over & over until it truly sinks in.
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Post by rmarks1 on Dec 18, 2013 17:42:46 GMT -5
What hasn't been said is that money is flowing to the fat cats in Wall Street as a direct result of government policies and not as a result of the free market.
1) Government (through the FED) keeps the interest rates super low.
2) Government (once again through the FED) "buys" government bonds and bundled mortgages to the tune of $85 billion a month. That's about one trillion dollars per year.
3) Where does that money go? People can't put it into savings accounts because they don't pay enough interest. The money goes to Wall Street because people are seeking higher rates of return.
4) Result: The fat cats on Wall Street get fatter and income inequality GROWS.
5) One more point. It's not the 1% that's the problem. It's the 0.001%. That's right. Most of that money flows to just a few thousand people on Wall Street.
Bob
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Post by tricia on Dec 18, 2013 23:15:29 GMT -5
""A key source of the economists' concern: Higher pay and outsize stock market gains are flowing mainly to affluent Americans. Yet these households spend less of their money than do low- and middle-income consumers who make up most of the population but whose pay is barely rising.""
See, I got something altogether different out of what they're saying...
Whenever I've known someone with money who doesn't spend a lot and someone says something about it I say "That's WHY they have money." To me, maybe people who have money are just better at managing it and not spending it on things they don't need? I'm not saying this to say I'm any better because I'm a spender. I'm one of those that keep that economy going because I like to shop. We go out to eat probably more than we should, I buy lunch most of the time instead of bringing it, etc...
Did anyone ever think that maybe some of those people have money for a reason? To me, this article suggests that the wealth should be spread evenly so that those who spend when they shouldn't can have more to spend when they shouldn't. If lower and middle class people are spending more than people who have the means to do it...I mean...does no one else see the connection there to maybe that's a part of the reason the lower and middle class have less money than the wealthy?
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