IMF: Rise of Inequality at Center of Global Economic Crisis

[LAM]

IMF Survey: Rise of Inequality at Center of Global Economic Crisis

* even the IMF now openly admits that extreme inequality is hampering economic growth

 

[maniclion]

IMF Survey: Rise of Inequality at Center of Global Economic Crisis

* even the IMF now openly admits that extreme inequality is hampering economic growth

They want us to go back to feudalism, Lords and Serfs and indentured, I mean indebted servants....

 

[LAM]

They want us to go back to feudalism, Lords and Serfs and indentured, I mean indebted servants....

it's funny to see how the ideologues just can't grasp this, as if mathematics doesn't matter in economics. sometimes I wonder just how these people dress themselves in the morning with out aid.

 

[Bowden]

They want us to go back to feudalism, Lords and Serfs and indentured, I mean indebted servants....

The middle and lower economic class already are de facto indebted servants.

The capitalist system is broken.
Capitalism requires consumption of goods and services to generate profits and return on capital to capitalists.
For over 100 years capitalists granted workers higher and higher wages.
This allowed workers to consume at higher and higher rates the goods and services that capitalists provided in-order to receive profits and return on their capital.
Then starting in the 70's middle class wages started to stagnate due to reduction in unionism , wage and benefit reductions in the middle and lower economic classes accelerated due to increases in globalism, off shoring of manufacturing and automation that reduced the need for workers.

This has all caused dynamic shifts in labor market dynamics.
Prior there was an under supply of labor.
There is now an over supply of labor.

Capitalists then created a debt based consumer society to offset the middle class wage stagnation and wage and benefit reductions in the middle and lower economic classes that they created to increase their profits and return on capital.
The lower and middle economic class started to take on more debt to buy the same level of goods and services they were used to under the now defunct rising wages model that allowed the consumption of goods and services they were accustomed to.

Now the current level of debt and increased levels of debt to buy goods and services cannot be serviced by the middle class and lower economic classes due to wage stagnation and wage and benefit reductions.
The entire U.S. debt based economy is in serous trouble.

Unless capitalists go back to the old model and start to grant wage increases again to the middle and lower economic classes higher than the rate of inflation on the things that people have to buy like energy and food things will never turn around.

The government intentionally does not include the rate of inflation on food and energy in the official 'core inflation rate'.
If they did that people would see clearly as to how their wages now buy less of the stuff they really have to buy like food and energy.

 

[LAM]

It's nice to see that some people get it, thank you Bowden.

 

[Bowden]

It's nice to see that some people get it, thank you Bowden.

The most ridiculous aspect to me as to the official government 'core inflation rate' is how the government does not include food and energy in the 'core inflation rate' report and the fed uses that inflation number to state that the rate of inflation is low.
Yeah,
In reality it's low on everything people don't have to buy to survive and high on everything that people need to buy to survive like food and energy.

People in the middle class starting in the 70's have been seeing wage stagnation and wage reductions and the pay from the majority of jobs created since the start of the 'great recession' (service jobs) are not keeping up with the inflation rates on food and energy.

At the same time corporate profits and as a result ROI to stockholders are as high as they have ever been.
Wal-mart buys back 15 billion in stock due in part to maintaining an intentional low paid/benefit worker model for the benefit of investor and wealthy classes who own the majority of stock in Wal-Mart who see rises in stock prices due to buybacks.
At the same time it provided those same workers with information as to how to access taxpayer funded government provided socialist welfare programs.

Right wing conservatives will not admit it as it points to the facts as to the reality of the failure of capitalism and free market forces to lift all boats.
Its lifting boats alright, the boats of the sociopaths in the upper economic class that are committing class warfare on the lower economic classes for their personal benefit.

Why the Rich Don't Give to Charity - Ken Stern - The Atlantic

"Last year, Paul Piff, a psychologist at UC Berkeley, published research that correlated wealth with an increase in unethical behavior: While having money doesn't necessarily make anybody anything, Piff later told New York magazine, the rich are way more likely to prioritize their own self-interests above the interests of other people. They are, he continued, more likely to exhibit characteristics that we would stereotypically associate with, say, assholes."

 

[Swiper]

The most ridiculous aspect to me as to the official government 'core inflation rate' is how the government does not include food and energy in the 'core inflation rate' report and the fed uses that inflation number to state that the rate of inflation is low.
Yeah,
In reality it's low on everything people don't have to buy to survive and high on everything that people need to buy to survive like food and energy.

People in the middle class starting in the 70's have been seeing wage stagnation and wage reductions and the pay from the majority of jobs created since the start of the 'great recession' (service jobs) are not keeping up with the inflation rates on food and energy.
At the same time corporate profits are as high as they have ever been.
Right wing conservatives will not admit it as it points to the facts as to the reality of the failure of capitalism and free market forces to lift all boats.
Its lifting boats alright, the boats of the sociopaths in the upper economic class that are committing class warfare on the lower economic classes for their personal benefit.

Why the Rich Don't Give to Charity - Ken Stern - The Atlantic

"Last year, Paul Piff, a psychologist at UC Berkeley, published research that correlated wealth with an increase in unethical behavior: While having money doesn't necessarily make anybody anything, Piff later told New York magazine, the rich are way more likely to prioritize their own self-interests above the interests of other people. They are, he continued, more likely to exhibit characteristics that we would stereotypically associate with, say, assholes."

what are the solutions? you and lam point out the problems, but never give your opinion for solutions. lets hear some solutions.

you say "capitalism" failed, what would you replace it with?

 

[Bowden]

what are the solutions? you and lam point out the problems, but never give your opinion for solutions. lets hear some solutions.

you say "capitalism" failed, what would you replace it with?

"Unless capitalists go back to the old model and start to grant wage increases again to the middle and lower economic classes higher than the rate of inflation on the things that people have to buy like energy and food things will never turn around."

People paying more for energy and food and at the same time dealing with wages stagnation and reduced pay and benefits do not have the disposable income levels that allow them to buy large amounts of the goods and services that capitalists provide to make profits and return on their invested capital.

American capitalist / corporations creating large numbers of low paid low benefit jobs world wide in-order to capture higher levels of corporate profits and ROI to shareholders under a globalization wage harmonization arbitrage model is not the solution and that is exactly what is happening now.

 

[Swiper]

"Unless capitalists go back to the old model and start to grant wage increases again to the middle and lower economic classes higher than the rate of inflation on the things that people have to buy like energy and food things will never turn around."

People paying more for energy and food and at the same time dealing with wages stagnation and reduced pay and benefits do not have the disposable income levels that allow them to buy large amounts of the goods and services that capitalists provide to make profits and return on their invested capital.

American capitalist / corporations creating off shore large numbers of low paid low benefit jobs world wide in low cost resource locations in-order to capture higher levels of corporate profits and ROI to shareholders under a globalization wage harmonization arbitrage model is not the solution and that is exactly what is happening now.

your solution is to go back to the old days of capitalism. got it. thanks

 

[Bowden]

your solution is to go back to the old days of capitalism. got it. thanks

Yes it is.
Capitalism as it now exists is not capitalism.
It's some sort of corrupted crony sociopathic every man for themselves huge levels of income inequality model.
As it now is, it corrupts government due to the ability of concentrated wealth in the hands of a few to manipulate governments and politicians for their own personal benefits instead of capitalism benefiting society as a whole.
Capitalists at one time seemed to understand that they have in addition to a desire to make profits a social responsibility to society to ensure that capitalism benefits society as a whole.
As stable societies are a requirement for capitalism to flourish.

 

[Swiper]

Yes it is.
Capitalism as it now exists is not capitalism.
It's some sort of corrupted crony sociopathic every man for themselves huge levels of income inequality model.
As it now is, it corrupts government due to the ability of concentrated wealth in the hands of a few to manipulate governments and politicians for their own personal benefits instead of capitalism benefiting society as a whole.
Capitalists at one time seemed to understand that they have in addition to a desire to make profits a social responsibility to society to ensure that capitalism benefits society as a whole.
As stable societies are a requirement for capitalism to flourish.

I agree.