- Economics 101 - Money Must Flow by Karlin
13 y
85,796 6 Messages Shown
Blog: Path of my Life
----- Part 1:
As with energy, wealth is difficult to store, especially for long periods of time. You hold currency, it can be devalued; You hold gold and the price can come down; Your buildings and equipment need constant maintenance which has to be paid for with revenue the buildings and equipment provide.
Hoarding anything upsets the balance and flow that is a hallmark of life on earth. Everything cycles, everything circulates, or it rots [one way or another]. An economic recession is basically just "stagnation".
Corporations and wealthy individuals are sitting on all the money. They have record amounts of "liquid capital", and they are not investing it because conditions are not right. There are 100s of major corporations who are holding amounts around $30 Billion to $100 Billion in cash today, whereas, in more normal times, corporations would be spending any profits on expanding their operations.
The wealthy, using their wealth to influence government policies to do whatever the wealthy decides is best for themselves, have created a situation of stagnation - they fought hard to get all the money and now that they have it they are sitting on it because conditions are not good for investments right now simply because money is not circulating - these are the conditions the wealthy and corporations actually arranged for!!
If they continue to sit on the wealth, the wealth will dwindle away to nothing. The US currency could be devalued - a much bigger problem that lowered credit ratings!!
-----Part 2:
Has government tried everything to get the economy moving again? They saved some banks and other financial industry entities, they saved some major corporations [automakers], but the one thing that governments have NOT tried is to stimulate the economy BY GIVING STIMULUS MONEY TO THE POOR AND MIDDLE CLASS PEOPLE. The poor would spend it right away, which is what is needed.
It would be too bad to see the economy go down without trying these two simple ideas that directly address the problem:
1] get that money flowing again by taxing corporations and wealthy people on any savings they sit on for more than one year [at a rate of around 35%]
2] as governments collect that money, they hand it over to poor people to spend.
[or, if the wealthy/corporations invest it, there will be more jobs and therefore more consumer spending]
----- etc:
This is just a suggestion from someone who knows very little. Knowing very little can help put things in perspective, whereas experts are bogged down in their own language and ideas. The Big Picture is more visible to those who are on the outside.
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Karlin
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- Re: Economics 101 - Money Must Flow by DeadPoets
13 y
1,992 1 of 1 (100%)
What a load of crock.
This guy is straight from the Keynesian school of thought (spend spend spend, stimulus, stimulus, stimulus)
The private sector catches WAY too much flack from the media in regards to anything economy related.
Our government (through The Fed) has been destroying our currency since the extinction of the Gold Standard.
Runaway printing/spending gets us in this mess.
The United States does not PRODUCE anymore. We are a nation of consumption. Until that changes (probably through disaster - ala depression, war, etc) nothing will change.
Politicians (other than maybe a Ron Paul) don't want to face the music and make tough decisions that will make them unpopular.
We are in desperate need of a recession (aka DETOX)
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DeadPoets
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- Re: Economics 101 - Money Must Flow by DeadPoets
13 y
2,052 1 of 1 (100%)
-----Part 2:
Has government tried everything to get the economy moving again? They saved some banks and other financial industry entities, they saved some major corporations [automakers], but the one thing that governments have NOT tried is to stimulate the economy BY GIVING STIMULUS MONEY TO THE POOR AND MIDDLE CLASS PEOPLE. The poor would spend it right away, which is what is needed.
It would be too bad to see the economy go down without trying these two simple ideas that directly address the problem:
1] get that money flowing again by taxing corporations and wealthy people on any savings they sit on for more than one year [at a rate of around 35%]
2] as governments collect that money, they hand it over to poor people to spend.
[or, if the wealthy/corporations invest it, there will be more jobs and therefore more consumer spending]
The most idiotic sh!t I've ever read.
Punish corporations and people for SAVING? LOL What?
You liberals have lost all touh with reality (though you never had it)
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DeadPoets
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- Re: Economics 101 - Money Must Flow by Karlin
13 y
2,491 0 of 1 (0%)
I am not sure you even read what I wrote. I only ask that the wealthy - private and corporate - get off the couch and start investing their hoarded wealth.
The current situation is one of stagnation.
Please respond in civil tones, no need for the insults.
Thanks, peace, calm...
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Karlin
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- Failed Economics 101 - Money Must Flow by Finch Hatton
13 y
2,315 1 of 1 (100%)
lol! Same old band aid approaches that fail time and time again. If people are jobless and nothing is being produced how many times can you pass out free money until that money that represents nothing becomes worthless?
Yes money needs to flow but from legitimate sources that are the products of our creation and our energy. This is as basic as the old parable of giving a man fish and you feed him once, teach him to fish and you feed him for a lifetime.
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Finch Hatton
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- Re: Failed Economics 101 - Money Must Flow by Karlin
13 y
2,204
And I agree with that - the wealthy should be asked to start up new enterprises with their money, or lose it. Don't hoard it because people suffer when money is socked away in a capitalist economy.
Peace and prosperity to you
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Karlin
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