Moyers and Krugman on Picketty's book

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Parrotpaul
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Re: Moyers and Krugman on Picketty's book

Postby Parrotpaul » Tue Apr 22, 2014 12:45 pm

Here's an interesting NYT's article that discusses the dwindling "richest" status of the American middle class among other western world countries....

The American middle class, long the most affluent in the world, has lost that distinction.

While the wealthiest Americans are outpacing many of their global peers, a New York Times analysis shows that across the lower- and middle-income tiers, citizens of other advanced countries have received considerably larger raises over the last three decades.

After-tax middle-class incomes in Canada — substantially behind in 2000 — now appear to be higher than in the United States. The poor in much of Europe earn more than poor Americans.

The numbers, based on surveys conducted over the past 35 years, offer some of the most detailed publicly available comparisons for different income groups in different countries over time. They suggest that most American families are paying a steep price for high and rising income inequality.




http://www.nytimes.com/2014/04/23/upsho ... ml?hp&_r=1

P.S. Jet Blue pilots have agreed through the ballot box to unionize.


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Wabash
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Re: Moyers and Krugman on Picketty's book

Postby Wabash » Tue Apr 22, 2014 1:11 pm

JQP wrote: But thanks for telling us that Friedman and Hayek didn't know what they were talking about. Some of us already knew that, though. :wink:

Pleaase add Arthur Laffer to that list.
They told me if I voted for Hillary Clinton the president would be emotional, impulsive, and unpredictable. They were right. I voted for Hillary Clinton and got a president that is emotional, impulsive, and unpredictable.

Playthegame
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Re: Moyers and Krugman on Picketty's book

Postby Playthegame » Fri Apr 25, 2014 11:12 pm

John Q. Public wrote:I would propose short-term capital gains taxes and incentives for long-term production growth.


Short-term capital gains tax would be disadvantageous to incur, most markets are sideways, don't see how this is revenue generator, additionally what types of incentives would spur investment better than knowing that tax basis is low and stable?

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Fordama
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Re: Moyers and Krugman on Picketty's book

Postby Fordama » Sat Apr 26, 2014 5:24 am

What we do with the knowledge is up to us. He proposes income subsidies, I would propose short-term capital gains taxes and incentives for long-term production growth.

Stop that--it makes too much sense!

Fordama
This country of the United States was not built by those who waited and rested and wished to look behind them.---JFK

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John Q. Public
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Re: Moyers and Krugman on Picketty's book

Postby John Q. Public » Sat Apr 26, 2014 7:08 am

Playthegame wrote:Short-term capital gains tax would be disadvantageous to incur, most markets are sideways, don't see how this is revenue generator,...

It wouldn't be meant as a revenue generator but as a disincentive for looting. Kramer likes to post graphs of the effect of offshoring; I'd "venture" to guess that the curves for the growth of M&A's, arbitrage and hedge funds would show similar curves.

My 401k is growing at 2 or 3 times the rate that my income, job prospects and the national economy are. At this point in my life, and after the crash, I appreciate that but I don't think it's a healthy situation.
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Playthegame
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Re: Moyers and Krugman on Picketty's book

Postby Playthegame » Sat Apr 26, 2014 9:36 am

John Q. Public wrote:Kramer likes to post graphs of the effect of offshoring


Lower corporate tax rates, and the Offshore advantage is mitigated, subsidies cost somebody, I like the incentive idea, using opportunity for profit to prevent capital dislocation, keep the money here, bring companies and profits home and stop forcing them to shelter profit/gain offshore. Bring the activity and the money home. We are talking Corporate wealth/profit and the effect of that wealth remaining off shore has on the middle class. The middle class would be better off if the business activity were here and not penalize middle class earnings and investment at the same time. So I really do not like the short term capital gains tax idea as control tool although I understand the premise, I just think the opportunity to live off the belly of the shark is better than being eaten by the shark. Saving has always been the way to true wealth accumulation for the middle class and the truth is inflated cost due to current monetary policy and stagnate wages with higher taxes mean middle class families do not have the money needed to establish savings and investment. Wealth standard can grow when there is paycheck still left at the end of the week.

As far as 401k growth, the correlation between US monetary policy (debt issuance) and equities appreciation is a concern. If current estimates are for low rates through 2016 then your 401k is safe until then, so plenty of time to migrate to hard assets, agg and energy related stocks.

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Troglodyte
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Re: Moyers and Krugman on Picketty's book

Postby Troglodyte » Sat Apr 26, 2014 10:27 am

It's a shame that corporations and the rich find that taxes, regulations, and interest is more stable right now overseas than it is right here in the US. I know exactly what my taxes and interest rates will be next year in Thailand, and I don't have the unknown costs of Obamacare looming over me there. I can plan accordingly there, Here I can't.
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