'The Poor Always Pay'

Discussion in 'Economy' started by midcan5, Jul 11, 2010.

  1. midcan5
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    midcan5 liberal / progressive

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    "Grameen has given out billions to borrowers around the world, mainly women below the poverty line, and has recouped 98 percent of its loans."


    So often I read from the economic ideologues how we need the rich for job creation. Knowing many rich people I laugh at the idiocy of this idea. Why the idea persists is simply the idea suits a narrative of thought that lower taxes create jobs when that simply is not true. Although the rich love it. Below is another good idea and the work of another good person, hopefully it will stay a good idea.

    'An Asian bank for low-income women is out to teach Wall Street a lesson.'

    "This summer, the little Bangladeshi bank—already operating in New York; Omaha; and Washington, D.C.—will move into its fourth U.S. city, San Francisco, fueled by a series of loans from institutions like Wells Fargo and Capital One that, aside from basking in the glow of good PR, have realized that they are more likely to get their money back by lending to African-American hairdressers in Queens or Latina food-cart operators in D.C. than by chucking money at middle-class whites who have bought more McMansion than they can afford."

    Grameen Bank Expands Into America - Newsweek

    Yunus Centre


    "There is no historical evidence that tax cuts spur economic growth. The highest period of growth in U.S. history (1933-1973) also saw its highest tax rates on the rich: 70 to 91 percent. During this period, the general tax rate climbed as well, but it reached a plateau in 1969, and growth slowed down five years later. Almost all rich nations have higher general taxes than the U.S., and they are growing faster as well." Tax cuts spur economic growth
     
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  2. editec
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    editec Mr. Forgot-it-All

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    Tax cuts aimed solely to benefit the already very wealthy cause bubbles in investment markets..too much capital chases too few profits.

    These tax cuts for the very affluent end up as inflationary because the government ends up having to borrow to pay our bills.

    The working class (particularly the upper middle working class) pays too much taxes.

    They get damned little back for their taxes, too.

    The truly middle class and the lower middle class pay very little in FEDERAL income taxes, usually.

    Most of their taxed contributions to society come in in the form of sales taxes and fees going to keep the state governments going.

    And as those working classes lose incomes the states are going broke, too.

    But in very real terms the only people who have enjoyed real tax breaks in the last fourty year are the superwealthy.

    And as you can see that hasn't exactly done great things for this economy in the longer run.

    One invest bubble after the other has blown up in our faces.

    The rich are plenty rich enough, folks.

    Save you sympathy for the working stiffs (and these includes lawyers, doctors and people some of us think of as very well off!) who have been footing the LIONS SHARE of the tax burdens to keep civil society afloat.
     
    Last edited: Jul 11, 2010
  3. Tech_Esq
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    Tech_Esq Sic Semper Tyrannis!

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    It's an interesting theory that American businesses (banks) choose not to make profits when there is plenty to be made (according to the logic laid out in this post). Instead, they would rather loan to people who choose to be deadbeats.

    According to this logic, banks should be loaning money primarily to the poor. I wonder why they don't want to make money and why their investors let them get away with it.
     
  4. midcan5
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    midcan5 liberal / progressive

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    More evidence.

    'America Builds an Aristocracy' by Ray D. Madoff

    http://www.nytimes.com/2010/07/12/opinion/12madoff.html?_r=1&src=me&ref=homepage



    How Inequality Fueled the Crisis - Project Syndicate

    "The broader implication is that we need to look beyond greedy bankers and spineless regulators (and there were plenty of both) for the root causes of this crisis. And the problems are not solved with a financial regulatory bill entrusting more powers to those regulators. America needs to tackle inequality at its root, by giving more Americans the ability to compete in the global marketplace. This is much harder than doling out credit, but more effective in the long run."

    'How Inequality Fueled the Crisis' by Raghuram Rajan


    'No age of austerity for the rich' by Sasha Abramsky

    "If austerity implies shared sacrifice to preserve a shared public sphere, America isn't really experiencing such an age"

    No age of austerity for the rich | Sasha Abramsky | Comment is free | guardian.co.uk
     
  5. topspin
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    topspin BANNED

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    Awwh
    More evidence for getting educated and not being poor.
     
  6. crazybuoy
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    crazybuoy Rookie

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    Why you said like this.
    why it pay.
     
  7. Quantum Windbag
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    Quantum Windbag Gold Member

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    You do realize that compared to most of the people who get those loans you are wealthy beyond imagination, don't you? That bank is supported by rich people, which proves that rich people create jobs. Poor people work for themselves, and do not employ other people. If you employ someone you are richer than they are.
     

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