SPLIT TOPIC: American society: the poor the unemployed
Comments
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anyone stlll have the energy to read and comment on the following?
http://www.gothamgazette.com/article/Economy/20110118/21/3452
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Like I said before, the rise in wealth at the top is mainly due to policy, not some conspiracy to milk the poor.
I think an examination of how to bring growth to the other 99% would be good, but I think assigning blame to the rich for making themselves richer is unfair. There's no connection. The blame should go to whoever initiated these policies- the very gov't ppl are looking for to save them.
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"mainly due to policy"
aren't we talking about a lack of policies?
As a result of letting the market be as free as we have, haven't we created an environment in which wealth is becoming increasing concentrated?
As I asked above, at what level does the concentration of wealth become a problem?
Surely you agree there is a level that would be problematic.....
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I think there has been a lot of policy that has unfairly helped the rich (i.e. corporate welfare). However, those policies didn't necessarily hurt the poor or middle class (for example, there are normal folks who profited from the crazy US takeover of various "companies" by betting on or against their stocks at the right time).
Plus bear in mind, money talks, unfortunately. Even if we enacted a plan to redistribute half the wealth of the top 1%, that top 1% would still hold the bulk of the wealth, along with the various connections & opportunities that come with it. Let's not forget America's history of slavery, monopolies, yadda yadda.... even in the "good old days" of 90% federal taxes the rich still wielded a disproportionate amount of power. That's the power of being rich!
I think the more fruitful effort is to ensure that during periods of prosperity the growth is distributed equitably across income lines, that one group's growth doesn't happen at the expense of the other, and that efforts are made to bring those out of the 1st world in America into it in some meaningful way.
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Let's assume that rich keep getting richer, and the wealth of the other classes continues to decrease.
(lots of data out there says that the real wages of the middle class and the lower classes have been falling for quite sometime).
At some point, they are going to get pissed and look for someone to blame.
Isn't is logical to think that they are going to blame the rich? ....regardless of whether a macro trend (such as over population or globalization) is to blame?
Shouldn't the rich share their wealth to prevent one of the poor from getting a job as their security guards and then shooting them dead?
....note: this wouldn't be out of any generosity or altruism by the rich, it would simply be a way to preserve their safety.
(all those African countries come to mind...)
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I think we have a long way to go before that point. I mean, the reason for much of the uprising that occurs in Africa is due to outright blatant theft. Countries like the US send billions of $$$ in aid, and rather than it going to the people who need it, it goes to the dictators and warlords running the country. That's a deep topic in itself but right now I just don't see that happening to the US. People here for the most part have means to sustain themselves, as well as guns etc.
Plus I keep coming back to the fact that middle + lower class Americans don't save + aren't good w/the "little" money we have. I find a wild array of #'s, but I'm gonna pick the # from this site:
As of March 2010, the average household has about $15,000 in credit card debt. W/an avg APR of 10-13% that's like a minimum payment of about $300... $3600/yr after taxes, or about $4500/yr before taxes.... a good 10% of the avg American household's income. And that's not even counting the late fees and overdraft charges that really pad the banks' coffers. CC debt is especially a problem for black people, which indicates, depressingly, that poor people hold a lot of debt. So if we want to talk about where a lot of poor people's wealth is going (voluntarily!) CC debt is a good place to start.
I understand things happen, but an avg of $15,000 worth of things happening for everybody? I think poor people just learning money management alone would help tremendously. Like I said it makes no sense to raise entitlements when the people receiving them have shown they cannot do right w/the resources they already get. And that's no indictment of them; if you don't know you don't know; I blame schools for not teaching simple personal budgeting & the effects of bad money management, and CC companies for basically forcing themselves on customers without informing them of the possible pitfalls. Still though, people should know what the fuck they're doing.
And I think things have been occurring to correct this, which is good. But yea that's a biggie.
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Plus bear in mind not all households have CC debt. 54 million have debt out of the 110 million or so in the US. I can't find a graphic of any kind of debt distribution vs income, but I BET there's an inverse relationship between household debt and household wealth. Is the price of "keeping up with the Kardashians" really worth it?
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Because I completely agree with you that that people's own habits (especially being financially foolish) tend to keep a lot them poor, I will not comment on that aspect of your last two posts.
I, do however, continue be stuck on my "there will come a point in which the wealthy will need to redistribute income for their own good" thoughts.
CTK wrote: I think we have a long way to go before that point. I mean, the reason for much of the uprising that occurs in Africa is due to outright blatant theft. Countries like the US send billions of $$$ in aid, and rather than it going to the people who need it, it goes to the dictators and warlords running the country. That's a deep topic in itself but right now I just don't see that happening to the US. People here for the most part have means to sustain themselves, as well as guns etc.
Folks who do study criminal behavior, psychology and political science argue that it is often the subjective perception of "unfairness" that causes people to rise up and grab someone's Iphone or be part of crowd that surrounds a mansion/castle while armed.
While I agree that taxing the nation's most successful until they leave the country is self-defeating, the impatient, violent people do have a way meeting each other, and occasionally get along well enough to generate some really good news footage on BBC.
During the late 80s and early 90s, a lot this footage came out of Central America.
Because I was merely a younger version of the guy I am now, I traveled to El Salvador with a group of economics majors in 1992 to see what all of the fuss was about, and participate in hypothetical discussions of how "we would develop the country" ......all while consuming copious amounts of the country's products: coffee, tropical fruit and marijuana.
--to be continued---
Btw, don't worry, I am remaining on topic.
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Well that perception of fairness concept ties right back into what people feel they're owed. In 3rd world countries the connections between the rich getting richer and the poor getting poorer are pretty clear. Americans however have shown that they feel entitled to a lot of things they really aren't entitled to.
I mean I was just listening to a podcast about a chick who is suing Walmart because she walked into one of their glass doors. "WALMART OWES ME!" I know people who have made their living doing time card scams at places like McDonalds etc. People on public assistance w/flat screen TVs and expensive clothes. So IMO it makes no sense to talk about wealth redistribution when many of those looking to gain will be spending that new money on things that are unnecessary. America in general needs to recalibrate its standard of living to match our actual needs & output.
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You have just saved me much typing.
Basically, what I was going to say was:
Here I'd gone down to El Salvador just following a drawn out civil war over class issues, and was expecting to see Che's point of view.
But I didn't.
Instead, I saw a bunch of poor, uneducated farmers who were growing things that could be grown by anyone in the region for just as cheaply.
While being driven around by a tour guide who sympathized with the peasants, I was told "Over the past few days we have seen how the poor live in my country, Today, we are going drive through one of the neighborhoods of oppressors."
However, while I expected to get a drive through Scarsdale, I instead got a tour of Levittown!
Because there were no "truly wealthy" in the country, the poor hated those people who sold their products to United Fruit and the coffee producers: Mid-level people who earned the equivalent of 50k in today's dollars, and had scraped together enough to get a house with a functioning toilet and perhaps air conditioning.
Yet, to them, this represented extreme wealth. ....they afterall, were working 12 hours a day, living in huts, and (except in cases where US AID had educated them about "germs" enough to dig a well!) drinking from streams that were also sewers.
I large part me thought: "At this moment, I am not seeing oppression. At this moment, the ruling party is not shooting these people in the streets. At this moment, giving these people money would help very little. These people are completely illiterate and need education. These people need someone to dig them a well. These people need tractors and the skills to repair them. The age of the water buffalo is over, and these people got left behind."
"The ruling party is trying to move the country into the modern age, and doesn't seem to be living particularly extravagantly as it does so. These "rich people" are the only ones bringing any new money into this economy"
Yet I also understood the poor's point of view: They wanted what others had. They wanted what they felt they "deserved".
....and all the little supply and demand charts in the world, and macro economic classes in world weren't going to make them change their minds.
And if "land and wealth redistribution" didn't happen quickly, the poor were clearly going to send the country into another era of completely self-defeating civil war.
To make a long story short: I concluded that the "rich Levittown residents" were completely screwed. As a result of their ability to figure out how to escape the slums, they would always be hated, and the poor majority was going to consistently vote in a way that kept the country stuck.
Moral of the story:
In a democracy, the rich had better figure out a way to appease the poor.
....even if the poor deserve to be poor, and play a marginal role producing products of little value.As I see it, if things get worse the wealthy of the US can either dismantle our democracy [With the help of the US and under Ronald Reagan the ARENA party systematically attempted this]
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OR
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throw the other classes some carrots (like health care, etc.) to keep them quiet.------------------------------------------
Currently in the US, the poor are doing the exact opposite of the above.
Instead of blaming the rich, they are blaming immigrants.
Somehow America's native born believe that they are exempt from world economics, and that somehow "Jose" is to blame because he will work for less (and perhaps harder) than them.
.....of course, it makes no sense.
Perhaps after a while they will get their acts together, and to blame people whom they believe to be evil and rich.
.....barring things like slavery, that will make no sense either.
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The poor are blaming the rich too, make no doubt about it.
You might be right. In the long run subsidizing the costs of living for a segment of the population might be beneficial. The problems arise when people start wanting more. I am still hung up on BG's claim that it's the gov'ts responsibility to ensure that everyone can afford to have and raise children. Once we start to create programs based on emotional appeals rather than what makes sense for the country, we are hopping onto a greased up sled headed down a slippery slope. That's why I try to rationalize everything I believe to some degree. I'd love for everyone to have everything they ever wanted and needed, but reality won't let that happen.
And I also agree that there's definitely an element of, dare I say, jealousy, for lack of a better word, that is behind these entitlements. Couple that with an absolution of responsibility and you have a pretty flawed logical basis for analyzing what can be and needs to be done about poverty in America.
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Correct: None of the social classes in america speak with one voice.
....all attribute different factors for their success or failure.
It is quite annoying to hear the rich speak of their status as if no one else helped them get all of that money, and they somehow have a skill set that warrants annual pay of 20 million.
Other rich will admit they were simply in the right place at the right time.
Still other rich know that they are able to profit because of miserable working conditions and low pay in other countries, and even seem to feel some genuine guilt about benefitting from it ....often expressed by a donation to the country they have plants in.
I want BG to comment on my El Salvador trip.
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Some rich people... sorry, "rich" people really did make their own way. My dad went from living in a shanty w/illiterate parents to having a successful private medical practice in NYC. Is it his fault that the poor + middle class haven't seen the same gains in income that he might have? He has used his position to put all his kids through college, bring family over from Ghana and make a lot of investments & provide help back home. So what about people like him, who are self-made, helping as they can and not exploiting anybody? I'd bet most "rich" people are more like him and less like Gordon Gekko, but to BG that is of no consequence as they have more than others, and regardless of how they got where they are do not deserve all they have. It's silly
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Not sure what you want me to say.
I think health care needs to be massively reformed. I think minimum wage needs to be almost doubled. I think executive pay needs to be tethered to the lowest paid worker. I think there needs to be a new bracket for the super rich. I think we need to dramatically cut defense spending.
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I think the difference between the liberal and conservative arguments here can be summed up as - If you are a liberal, you believe that the "government" should give the poor what they WANT and the conservative believes that the "government" should give you what you NEED. There is a vast gap in the WANTS to NEEDS and there is a greater gap of determining how to fund the difference. There is also a large gap in the concept of decisions and consequences. Being a FISCAL conservative, I chose to limit my spending - and TRY to save a crumb or two for retirement. But should I be penalized (via higher taxes) for this decision? Should the decision to have children be subsidized by those who opted NOT to do so?
We all argue for freedom in our choices, but rarely do we correlate that freedom with the consequences of those choices.
CTK states that in the long run subsidizing the costs of living for a segment of the population might be beneficial. I believe this has been the going concept since the Johnson administration. The problems of poverty have not been eliminated (nor reduced) despite increased spending by each consecutive administration (both republican and democrat). I think it is well past time that we look to grass root solutions (someone mentioned trade training?) and the concept of responsibility. It is NOT the government's responsibility to ensure that everyone has everything they want (from children to home ownership).
65 years of encouraged conspicuous consumption (via all media bombardment) has created the notion that immediate gratification is everyone's right - regardless of abilities or resources.
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I'd bet most "rich" people are more like him and less like Gordon Gekko,
and I'd "bet" the exact opposite. Hmmm.
but to BG that is of no consequence as they have more than others, and regardless of how they got where they are do not deserve all they have. It's sillyjust skip your dumbass and false generalizations, ok? it wastes precious server space.
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If you are a liberal, you believe that the "government" should give the poor what they WANT and the conservative believes that the "government" should give you what you NEED.
I think is a somewhat unhelpful generalization.
I think our *society* needs to do better giving people opportunities to get out of poverty.
I do not think the government should buy everyone luxury cars or an HDTV.
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As most generalizations are. But the problem is that if the poor are simply provided subsidies with no education or training on how to manage limited resources, those resources may very well be wasted (at the very least utilized imprudently). Perhaps it is a bit naive to think if the poor are provided with TOOLS to pull themselves out of poverty they may do so. You refer to opportunities - again, I do not grasp what those may be. The creation of illusory jobs?
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BG-
I want you to comment on my trip to El Salvador 20 years ago because many of the poor in America are similar to the uneducated peasants I wrote about....what they produce isn't worth a lot in the world economy, and I question whether paying them more to pursue it via the same outdated "methods of production" with their water buffalo is going to help anyone.
Not to be cruel, but we've all read Brave New World, by Huxley right?
....at some level doesn't there need to be poor so that there can be rich?
Doesn't the efficiency gains from the whole "capitalist - free trade", "pareto optimality" madness allow us to feed the 7 BILLION people we will now have on earth?
Barring some massive disease outbreak, do we have any choice BUT to pursue those gains?
When we pay domestic people more than they are worth, aren't we foregoing some of the potential gains of such trade ?
....i.e. While the individuals that receive the protection benefit, we as a country are slightly more worse off.
....likewise, when we allow someone to amass $20 billion, aren't we missing out resources we could use to drop birth control from planes?
CTK-
Your dad has my total respect. We should have a tax system that makes sure others like him continue to work 12 hour days in order to succeed.Domino-
I agree, but still want some protections for those at the absolute bottom of the scale who are "worthy". ...especially the kids. -
"if the poor are simply provided subsidies..."
I never argued this. I'll recap for you.
For starters:
I think health care needs to be massively reformed. I think minimum wage needs to be almost doubled. I think executive pay needs to be tethered to the lowest paid worker. I think there needs to be a new bracket for the super rich. I think we need to dramatically cut defense spending.
....at some level doesn't there need to be poor so that their can be rich?
Probably, I haven't spent enough of my life reading economic treatises. But there's poor and then there's poor.
I am suggesting, as a very rough beginning baseline, that if you work full time for minimum wage, you should be able to afford to have kids, and not be threatened with bankruptcy if you get sick or injured.
Minimum wage isn't $6-whatever b/c of some all-knowing free market process. That's what it is b/c that's the lowest that business lobbyists could get our "representatives" in congress to agree to. Similar to how executives aren't paid $20M a year or whatever b/c that's what the glorious unfettered (except when aided by government giveaways) market dictates, but actually b/c that's what the CEOs are able to convince the boards (who strangely consist of other CEOs) to pay them.
I am not arguing socialism. I am not arguing communism.
I am arguing that what we accept today as "acceptable quality of life" for our poorest workers is inadequate to say the least.
Our society can do better. It won't bankrupt us. It won't change the almightly American Way. In fact it might, just might, make us stronger and more competitive.
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and I'd "bet" the exact opposite. Hmmm.How many rich people do you know?
just skip your dumbass and false generalizations, ok? it wastes precious server space.You continually demonize the rich & make hapless victims out of the poor, and don't really explain why....
I do not think the government should buy everyone luxury cars or an HDTV.
What do you think they are doing by enabling people on welfare to take cash out of their EBT cards? What do you think would happen if we were to "pay more" for poor people w/o addressing the underlying causes of poverty cycles?
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How many rich people do you know?
Dude, if you knew where I was from and where most of my friends work. Let me just put it this way, I'll be surprised if you know more bankers than I do.
You continually demonize the rich & make hapless victims out of the poor, and don't really explain why....
Nope, that's just how you read it because you're defensive and you refuse to ask pointed questions.
We've been over this about 800 times. I will defend any claim I make. I am purposely thoughtful with my words.
What do you think would happen if we were to "pay more" for poor people w/o addressing the underlying causes of poverty cycles?
Who said anything about no addressing that? Oh wait, that's another one of your useless assumptions about my viewpoint.
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In very many parts of this country, you CAN work full time for minimum wage AND afford to have kids. Unfortunately, the DECISION to live in one of the most expensive areas in the country limits your ability to live on minimum wage. Even further limits the OPTION of having children. Again, why should these DECISIONS be subsidized?
I fully agree that MANY executives are barely worth the price of a MetroCard - especially given the poor decisions which have contributed to the financial meltdown (wasn't it some bonehead at Merrill Lynch that deflated the MBS portfolio to the tune of $20MM still got a $1M+ bonus?). But a barely literate rude retail clerk is also not worthy of $90K per year.
By arguing for an increased minimum wage, you are merely asking that the subsidy come from private industry rather than the government. Increases in wages should be commensurate with increases in skill and performance (take THAT Teachers Union). Since corporations exist FOR PROFIT, low skill jobs will be outsourced to cheaper comparable unskilled labor.
If more shareholders voted (a familiar chord) against the CEOs and booted them off for poor performance, perhaps the concept of RESPONSIBILITY and CONSEQUENCES would be enforced.
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Please. Where in this country can you make $15,000 a year (minimum wage) and not be absolutely scraping by?
you are merely asking that the subsidy come from private industry rather than the government
This is an entirely relative statement. Your starting point presupposes that absolute maximum corporate profit is the most important factor in society.
It's not.
If our corporate structure means that minimum wage HAS to be $15,000 a year in order for us to be functional, then we need to do better, as a society.
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I my haste, I forgot to ask what OPPORTUNITIES can be provided to those that are poverty stricken?
I am fully in support of developing the TOOLS/SKILLS to reduce poverty, not continue providing CRUTCHES that only serve to perpetuate it.
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domino wrote: In very many parts of this country, you CAN work full time for minimum wage AND afford to have kids. Unfortunately, the DECISION to live in one of the most expensive areas in the country limits your ability to live on minimum wage. Even further limits the OPTION of having children. Again, why should these DECISIONS be subsidized?
In an attempt to avoid this conversation, I made my carpenter be childless and live in Ohio.
...I agree with you that poor's choices about where they live and whether to have children should involve me much less than they do presently.
He isn't doing anything to "keep himself poor"
He works pretty hard.
He's pretty smart.
He shows up on time everyday and can make built-in bookshelves with the best of them.....
He knows how do do more than put seeds in the ground and then have water buffalo pull a plow.
Besides trade schools, what should be available to this guy?
health insurance?
a low interest loan so he can buy a small apartment?
a low interest loan from the federal small business association so he can launch a small cabinet building business?
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As for the commentary that where can you live for $15,000/year and absolutely not just scrape by -
Look to the vast majority of retirees living in Brooklyn. Many earn less than $1,200 per month. They may own their own homes (due to having worked hard and paid their mortgages - yet still continue to pay real estate taxes in excess of $3,000 per year) or have some rents that are subsidized, but manage to live within the progrma of social security.
As for home ownership - it is a privilege, not a right. A low interest low although may provide the buyer with a home, has repercussion upon the rest of society. He is asking society to subsidize his WANT (ownership) as opposed to having his NEED (shelter - renting an apartment) met. Often to the cost/detriment of other members of society.
A low interest loan from the small business association is subsidized by the taxes paid - the less people paying little to no taxes further erodes this functionality. Additionally, should the business succeed, although the loan is repaid (in most cases, not) its not the taxpayers who share in the equity or profits (apart from the taxes the business pays).
Should the retirees look for a waiver of their real estate taxes (STAR program of $400 per year has been eliminated which is a mere dent in the $3,000 annual tax bill anyway)? Even this small discount further erodes the tax base for municipal program funding (free school lunches and breakfasts for children). SO who should bear the burden - those retirees making less than $15,000 per year? Shouldn't the parents of these children bear some of the burden? If both parents earn $15,000 per year, while they would not be wealthy by any stretch, would be in much better circumstances than those earning a total household income of $14,000 (further reduced by $3,000).
While we do need carpenters, especially talented ones, unfortunately there is a cyclical demand. During housing and renovations booms I am sure the carpenter can appreciate higher demand (probably higher income). During lean times, carpenters (like many other craft and tradesmen) face decreased demand.
The
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BG and CTK-
It is your turn. Please state what, if anything, you would do to help the previously described carpenter.Besides trade schools, what should be available to this guy?
health insurance?
a low interest loan so he can buy a small apartment?
a low interest loan from the federal small business association so he can launch a small cabinet building business?
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I'm happy to answer but it's not quite clear what problem he faces. Just the general problem of trying to live on $15,000/yr?
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I was imagining him as living off 40k in really good years, and 10k in bad ones. This year is a bad one.
I also imagined that he spent 1k out of pocket seeing MDs and taking prescriptions every year to "not have kidney stones".
....but 4k in the years in which he ended up with kidney stones anyway.
His other major expenses are his apartment, his 10 year old pick up truck, food, and new blades for his saws.
He doesn't have much luck with the women, so he gets off pretty cheap there.

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