Swing States Get their "Reward"

[merrylander]

Here is an excerpt from an article in TIME Nov 26th 2012 "Why Stocks are Dead (and bonds are deader)" by Rana Foroohar. About the two men behind PIMCO, Bill Gross and Mohamed El Erian.(the two man who coined th phrase “The New Normal” and probably the sharpest fund managers of the decade.)

“The two do not see cutting tax rates a few percentage points or rolling back regulation as a solution, Gross believes that the last time supply side economics worked to stimulate the economy was in the 1970s, when taxes were being cut from much higher rates. Nor should we expect a manufacturing renaissance, the Democrat’s panacea, to spur recovery when our major exports are suffering.

But while they don’t favor simple tax cuts, they believe inequality is the biggest economic headwind out there. After all, how can you have a sustainable recovery in an economy that’s 70% funded by consumer spending when 90% of the income gains since the recovery began have been accrued to the top 1%? “Over the last several decades, companies have taken profits at the expense of individuals” says Gross, “A lot of people aren’t being paid enough to spend.”

I figure these two guys are better at ecomoics than any of us here in PC. Emphasis added

[icenine]

Most true Merrylander. Anyone who has been around since the 1950s can tell you that installment credit was what drove the American economy in the last 60 years...cars,houses, even speakers from Radio Shack.

[merrylander]

Originally Posted by icenine

Most true Merrylander. Anyone who has been around since the 1950s can tell you that installment credit was what drove the American economy in the last 60 years...cars,houses, even speakers from Radio Shack.

I note that it seems to have let the hot air out of whell.

[whell]

Originally Posted by merrylander

I note that it seems to have let the hot air out of whell.

Right. Throw out a bunch of unrelated factoids to sidetrack from the original post, bleat about inequality of income as today's biggest issue even though it's an "issue" that has been with mankind forever, and suggest that government intervention via the tax code - a course of action that typically creates more problems than it solves - must be the answer. It's thinking like that which leaves me speechles, because I fail to understand how rational people can still think that way.

[Boreas]

Originally Posted by whell

Right. Throw out a bunch of unrelated factoids to sidetrack from the original post, bleat about inequality of income as today's biggest issue even though it's an "issue" that has been with mankind forever, and suggest that government intervention via the tax code - a course of action that typically creates more problems than it solves - must be the answer. It's thinking like that which leaves me speechles, because I fail to understand how rational people can still think that way.

Right. Kings have always been richer than serfs.

I'd be very interested, whell, if you document some of the problems caused by higher top marginal tax rates.

John

[d-ray657]

Originally Posted by whell

Right. Throw out a bunch of unrelated factoids to sidetrack from the original post, bleat about inequality of income as today's biggest issue even though it's an "issue" that has been with mankind forever, and suggest that government intervention via the tax code - a course of action that typically creates more problems than it solves - must be the answer. It's thinking like that which leaves me speechles, because I fail to understand how rational people can still think that way.

The majority of people think that way. The voters rejected a candidate that was the most visible representative of the plutarchy that could be imagined. Enough Americans are sick and tired of the cards being stacked in favor of the richest that they voted for a candidate who promised to champion working folks. It's not a matter if naively believing that there will not always be rich and poor. But it is matter of determining that the ever growing gap between wealth and poverty has become unacceptable.

BTW - speechless - give me a break.

[merrylander]

Originally Posted by whell

Right. Throw out a bunch of unrelated factoids to sidetrack from the original post, bleat about inequality of income as today's biggest issue even though it's an "issue" that has been with mankind forever, and suggest that government intervention via the tax code - a course of action that typically creates more problems than it solves - must be the answer. It's thinking like that which leaves me speechles, because I fail to understand how rational people can still think that way.

Unrelated? So you think that you are smarter than El Erian and Gross? The 'new normal' is a direct result of the inequality of today, which by the way is the greatest it has been since George III.

I'll try it in very simple terms;

Seventy percent of our economy is conumer driven.

Consumers do not have any spare money.

The economy is in the toilet.

Speechless? Is that a promise.

[bobabode]

Originally Posted by whell

Right. Throw out a bunch of unrelated factoids to sidetrack from the original post, bleat about inequality of income as today's biggest issue even though it's an "issue" that has been with mankind forever, and suggest that government intervention via the tax code - a course of action that typically creates more problems than it solves - must be the answer. It's thinking like that which leaves me speechles, because I fail to understand how rational people can still think that way.

What's a speechle? Is that something you put on donuts?Try spellcheck Whellie, it would leave me less to make fun of.

[piece-itpete]

Originally Posted by wgrr

I was not referring to the welfare reform. I was referring to the Grahmn - Leach - Bliley Act better known as the Financial Services Modernization Act that killed Glass -Stegal.

Oh yes, THAT was snuck in

Pete