This article has some good basic discussion points, although wealthy capitalist by no means implies a thorough understanding of economics. There are two major fallacies in this essay: 1. He illustrates broad statements about the middle class with facts about the minimum wage class or vice versa. That doesnt work. These two classes are vastly different in roles, spending and how that spending affects their community. 2.The fundamental law of capitalism is: When workers have more money, businesses have more customers. Which makes middle-class consumers — not rich businesspeople — the true job creators. (Side not that all the consumers in the world could line up cash in hand for a good that doesnt exist and it wouldnt make anyone any money) No, when workers feel like they have more money they spend more. This has very little to do with actual money in the modern era. Values of real estate, stocks, and other asset accounts are the true creators of wealth-based spending here. This is where the trickle down theory takes root. Companies make money, people with said companies in their 401ks see stock go up, people feel rich even though they have no idea how that money was made. Natural cyclical recession occurs, stocks go down, people panic, hold on to cash, no more trickling. Seeing a problem? The problem is not that there is no trickle down or that prosperity is not inevitably good for an entire society regardless of concentration. Rather, the problem is one of volatility and inherent misunderstandings of what is real money. Addressing volatility? Easy. Invest in long term viability instead of short term unsustainable yields. Not so easy part: the people investing arent actually making any of the decisions on what they invest in. Theyre quick to point the blame when the market goes south yet refuse any accountability for where they put their money in the first place. Its easy for money to become meaningless when its magically worth more or less at times without any understanding of the reasons why. In summary, a pretty basic understanding of economics and logical reasoning could address these problems at their root, slowly but surely. If you take anything away from my rant, it is this: understand where your money comes from, what it is actually worth (today and tomorrow) and how you spend it. If everyone did this we could collectively do more to change the world than any politician could dream.
Posted on: Sat, 27 Sep 2014 20:17:22 +0000
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