Re: So what if there is income inequality as long as the pie gets bigger?

AZDuffman wrote:
On Jun 24, 1:30 pm, Les Cargill <lcarg...@xxxxxxxxxx> wrote:


People work just hard enough to not get fired and get paid
just enough to not quit. That's a cute way of describing the
application of price theory to wages.

Actually, I really like that! Hopefully you never copyrighted it :-)


> I agree with your basic premise - especially compared to
how poor people lived historically - but the fact remains
that if people make $30k instead of $20k ( in the most real
terms possible ) then money velocity will rise and the overall
GDP will go up. But of they don't *EARN* it - if the extra
$10k doesn't really mean anything - then this can result in
other problems.

You have me confused a bit on the "earn it" comment.



People note that growth cannot go on forever, and then debate
other people about it endlessly. I dunno myself, but I expect
it really is a "grow or die" sort of world.

I think growth can and must go on forever. People naturally want
to live a little better each year, only way to do that is growth.

Wrong. One obvious alternative way of achieving that result is more automation
etc and just replacing the shit 'jobs' like mindless paper shuffling etc.

What will be interesting, thought we won't be around to
see it, is what happens in 50-100 years when population
growth levels off and goes negative worldwide.

Doesnt need to be world wide, you can already see that in Japan right now.

There are already many cities where the population is stable or shrinking.

Yes, but they are mostly one industry towns where that industry is dying.

We've seen it for decades now with the smaller country villages whose entire
purpose for existence has died with much more viable transport with cars.

So what happens when there are 100,000 fewer people to buy things
the next year but your debt service is still based on the old sales numbers?

It hardly ever is on that last. And when it is, those operations go bust.

Russia is already losing 4,000 people per day and look at what it is doing.

That isnt what is causing the result they get.

Without high oil prices they would be in really bad shape instead of jsut bad shape.

Yes, but there were always some places that just turn into ghost towns.

Central america ended up with lots of them that the jungle just overran.

That would be true if money was "hoarded." But what if, as is the
case, most of the wealthy put their money to work instead of under
the matress?

But that's harder than it looks. You are correct - if people were
able to pretty much always invest efficiently and produce well with
investment, it would matter less. The problem is that the deeper
you get into investing to produce, the harder it gets. Throw in that
an awful, awful lot of existing production is mostly on autopilot,
and it gets even more difficult.

And in America, where an awful lot of history was "taming the
frontier", we get biased in favor of growth.

Well, eventually people will have enough that instead of investing they will enjoy more.

Those born in the 19th century always maintained that that has been happening for a long time.

What with Obama wanting to make an effective marginal
tax rate of over 50% at the Federal Level alone,

Lie.

that trip to Vegas looks a lot more fun than opening
another dry-cleaning store for one example.

How odd that we didnt see that result when the federal marginal tax rate was over 50%


.

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