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Here is why there is income inequality.

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  • Strongly Liberal Democrat
    Democrat
    Pensacola, FL
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    This sentence was taken out of context from a Joseph Spilglitz article :"the so-called vulture funds that had bought its sovereign debt at rockbottom prices". Talking about big banks and capital buying up debt . But the same thing happens after every correction in the stock market. Big money buys up the stocks that crashed. That is also why there is a recovery. Big money buys the bottomed out stocks and that starts the cycle over again. When big money buys the bottomed out stock that sets the price and starts the market. The result is that big money bought all the profits made from the last recovery. There are no patches or stimuli that are going to fix the economy. The only thing that will work is getting money into the hands of the lower classes to spend. One way is to turn the stock market and banks back to the fix of FDR. That puts the economy on a level playing field. Taxes have to benefit the country not a few. The talk earlier in the forum was about the perception of the world about the USA. The countries in trouble know who comes in and buys their debt to make a profit. What made income inequality here is the same on world debt. There is no excuse to support winner takes all just so the Right Wing can tell people anybody has a chance to have it all if they work hard.
  • Democrat
    Philadelphia, PA
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    I suppose a system whereby capitol gains / profits could be capped at a level where the capitalists can still invest/buy but level out the greed factor would be better. This idea does or should give room for considerations or at least some conversations. Otherwise this Nation will always be in a haves and haves not situation, as far their citizens are concerned.
  • Strongly Liberal Democrat
    Democrat
    Pensacola, FL
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    I personally feel that the sad part about the economy is it can be fixed by recognizing that our economy it is not a Capitalist economy. By no stretch of the imagination is it capitalist by definition. The only reason it is called capitalist is because capitalist is a respected recognized above reproach term. Capitalist is a one word answer to any attacks trying to put our economy on a level playing field or trying to prevent power from being concentrated at the top. A real capitalist economy is an ongoing economy. Our economy is continually divesting itself from depending on workers . Our economy is overly embodied in making a profit without workers making products for sale. This produces a smaller group of people collecting a larger percentage of profits. There eventually is no need for goods and services and consequently no need for workers. It is an oligarchy and the more money made without people will require a trend toward fascism to maintain order over the growing number of unemployed people. Do to the nature of our stock market there is a cyclical trend of corrections when stock prices get close to stock values. The consensus is that the next correction is going to be the biggest. Buying up the deflated market will be aquiring a big part of what is left. No significant action is not without reaction. If that correction lets the rest of the wealth go to the top, then they will have a lot of people to take care of. If the correction organizes the other classes then there might be a return to a real economy.
  • Independent
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    sorry, chet, it is a capitalist economy. capitalism is a system that has various phases including primitive accumulation and financialization. the single most critical feature of capitalism is that capitalists (defined as those who control money as opposed to anything else as money allows for control of land, resources etc.) seek return/growth and return/growth is compound which cannot last on a planet with finite resources. boulding knew this. even a regulated capitalist economy such as existed after fdr saved capitalism and before the collapse of bretton woods had circumstances which allowed for the united states economy to grow enormously that were singularly unrepeatable. the great compression could not have occurred without these circumstances.
  • Strongly Liberal Democrat
    Democrat
    Pensacola, FL
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    Lonely bird, My point is that it has moved away from goods and services and means of production. Even the word economy deals with goods and services. If the economy was invested in goods and services instead of speculative trading in derivatives there would be employment with increasing wages and production. Right now the system is replicating the actions that lead to the crash of 29 and the recent crash of 2008. 2008 was a result of repealing old laws and instituting new laws that took safeguards out of the system. In my opinion calling it capitalist serves to benefit the destroyers of the system.
  • Strongly Liberal Democrat
    Democrat
    Pensacola, FL
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    lonely bird said: "seek return/growth and return/growth", The problem with return/growth is that it morphed the system into a means of income. Initially the system provided money to industry so that industry could make products. Then the investor received income from how the industry profited from the sale of goods. That was fine . Stock holders could sell their stock as a source of income. Then not the source of income but the promise of more and future income became the value of the stock. There was no finite representation of wealth, just the promise. The promise inflated the value of stock and continued to do so until the promise exceeded expectations and the stock stopped selling. This turned into a cyclical event because there was sufficient discretionary money to continue to buy stock. Now income was not based on selling products but on speculation. Financiers continued to find ways to package and sell the promise of income. This continued to expand to the point where we are today. The promise of income exceeds the actual profit made from selling goods and services. The promise keeps absorbing discretionary money because there are people still working spending there money on the promise of income. Because there are not enough goods and services being sold to secure the promise the price of the stock exceeds its worth and there is panic, stock price falls. Then the promise overcomes the panic and the cycle starts again. Thst is why I say our system is not capitalist because more money is spent on speculation than goods and services. Our system is a trend leading toward collapse because products being sold are not providing new and more money. The cyclical collapsing is not sustainable because diminishing industry is providing less money after each correction. The result will be a large correction with no way to recover because all the money will be with people not interested in factories and businesses. They will have all the money and why would they want the aggravation of dealing with workers. That is why I say it is not Capitalist because the point is to get all the money and not deal with trading in goods and services.