Wealth inequality-how it affects the economy

Discussion in 'Economy' started by MaggieMae, Jul 13, 2010.

  1. MaggieMae
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    MaggieMae Reality bits

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    In 1973, the top 10% held 49% of wealth; the bottom 90% held 51% of wealth. That means 37 years ago, middle- and lower-class citizens could afford to buy American, shop in small community stores, pay their bills and have savings accounts.

    By 2005, the top 10% held 73% of wealth; the bottom 90% held 27% of wealth. That means that middle- and lower-class citizens can now only afford to buy cheap goods from China in giant big box stores that deal in volume, not quality, have difficulty paying their bills and saving at the same time.

    This is not a Bush-bashing subject. It's a topic for discussion that big corporations run the economy now, and small businesses exist only to support them. There is no doubt about it.

    Those who are so eager to return to the old ways of doing business, keep it small and simple, need to understand how impossible that has become when large corporations now set the stage for pricing, wage and benefit structure, and the myriad other management tools they employ in order to run an economy that is no longer affordable for small businesses to compete.

    "Government" isn't the only villain in allegedly suppressing small businesses. How often does the army of U.S. Chamber of Commerce lobbyists descend upon Washington to advocate for keeping a small business competitive with big business?
     
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  2. editec
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    editec Mr. Forgot-it-All

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    It not just destroying our economy (although it most certainly is) but it is also detroying the moral fabic of our people, too.

    When enough people sense that the only way to make it in America is to lie, cheat, steal, and take every advantage possible, then the quality of ALL our lives goes down the shitter.

    As almost every person here has already complained about.

    Of course we cannot agree WHY this is happening, but few of us are here telling us that we're HAPPY with the way things are progressing.
     
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  3. MaggieMae
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    MaggieMae Reality bits

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    Well it seems to me that far too many people are ignoring the major part corporatism plays in the destruction. Seems all I see are proclamations that "small businesses are the fabric of our society." Well sure, maybe even 20 years ago, but not today.

    According to the Small Business Administration, a "small business" is defined as one that has a net worth of less than $8 million or a net income of less than $3 million. THAT'S THE ENTIRE BUSINESS!! Compare that to the salary and bonus ALONE of just the CEO of a big corporation (pick any industry). Who wouldn't rather work for a large corporation where the salary would undoubtedly be higher and include benefits? Bye bye mom and pop enterprises that were generational, family farms, even small restaurants and hospitality ventures.

    Conservatives who believe the sun rises and sets with the theory that private enterprise should be left to its own devices most certainly have never considered the number of small businesses (which they put lip service to as being so important) that have gone under because they were trampled on by mega corporations (which, by the way, know all the tax loopholes and are able to take advantage of them).
     
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  4. MaggieMae
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    MaggieMae Reality bits

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    So far, this seems to be an unpopular thread for the right wing. Why's that, I wonder?
     
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  5. Mr Clean
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    Mr Clean Gold Member

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    Too bad we couldn't have asked the Russian peasants how they felt about the Czars' accumulation of wealth in the early part of the 20th century.
     
  6. editec
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    editec Mr. Forgot-it-All

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    Complaints about inequity of income distribution don't necessarily have anything to do with large corporations v small businesses.

    Small businesses can be just as rapacious as large ones.

    In the 50's major corporations helped create the wealthiest middle class in the world.

    But now that we've opened up the door for corporations to take their manufacturing operations off shore, while allowing the goods they make to come in to this market WITHOUT tariffs, those same corporations are basically no longer really part of this nation.

    EXCEPT for their nexus on K street, of course.

    They fucking own K street, hence they own Congress, the parties, and pretty much everything else in this nation where money and power matter.

    We allowed them to do it.

    Hell once the laws were passed they really have no choice BUT TO move their ops offshore.
     
  7. RetiredGySgt
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    RetiredGySgt Platinum Member

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    Ya lets seize everyone's money over say 2 million and let the Government redistribute it. You guys are such idiots. Envy is ugly.
     
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  8. manu1959
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    manu1959 Left Coast Isolationist

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    why are american made goods more expensive than goods made in china....
     
  9. hipeter924
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    hipeter924 Not a zombie yet

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    Inequality isn't the problem, but unemployment and poverty but even hard out socialists like Sweden can't solve that so I think we are pretty much stuck with it. Maybe reopen the steel mills, start making American cars again, and bring back the factories from China?
     
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  10. Mr Clean
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    Mr Clean Gold Member

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    Because American workers make more.

    And what's wrong with that?
     

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