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The Economics Department

Here's part of the blurb The Economist mailed me today. I detest the partisan characterizations ("Your farts stink, but my farts are so very fragrant"), but still thought it might merit mention in this thread.
Our cover this week warns that classical liberalism is under threat. One danger comes from the Trumpian right. The attack from the left is more surprising and harder to grasp. On the face of it illiberal progressives and classical liberals like The Economist want many of the same things. Both believe that people should be able to flourish whatever their sexuality or race. They share a suspicion of authority and entrenched interests. They believe in the desirability of change. And yet the two camps could hardly disagree more over how to make progress. Classical liberals believe that the best way to navigate disruptive change in a divided world is through a universal commitment to individual dignity, open markets and limited government. The illiberal left prefers to enforce ideological purity, by no-platforming their enemies and cancelling allies who have transgressed. The stakes could hardly be higher.

~ ~ ~ ~ ~ ~

I think the discussion of Pareto perfection is a digression. Deals can be applauded even if a small group suffers slightly. And economic value is VERY hard to measure, especially in the long term. Was the Industrial Revolution "Pareto efficient" in the long run? Maybe. But the absolute number of humans going to bed hungry has never been higher than in recent decades. And climate-change doomsayers believe we're headed for apocalyptic disaster.

The notion of Pareto Improvement is crucial to the application of benefit - cost analysis. When the benefits exceed the cost then an action is warranted even when there is no compensation.

The fact that there are winners and losers in almost any action helps to explain both the promotion of change (expected winners) and the resistance to change (expected losers). Recognizing that reality should help steer any discussion on a course of action to include how to get some buy in from the losers. Especially when the resistance is entrenched and powerful.
 
Was the Industrial Revolution "Pareto efficient" in the long run? Maybe.
Not really. A whole bunch of rural aristocrats found themselves no longer able to dominate government policy against the interests of city folk.

But the absolute number of humans going to bed hungry has never been higher than in recent decades.
Source?

distribution-of-population-poverty-thresholds-768x542.png


And climate-change doomsayers believe we're headed for apocalyptic disaster.
We were always headed for apocalyptic disaster. The sun is getting hotter; the oceans may boil away within a billion years. The best hope for long-term survival of life is either transplanting it to other star systems or moving the Earth to a higher orbit. Can't do either without an industrial revolution... :)
 
Nobody Really Knows How the Economy Works

A N.Y. Times article named "Nobody Really Knows How the Economy Works" quotes a senior economist at the Fed Res.

It has long been a central tenet of mainstream economic theory that public fears of inflation tend to be self-fulfilling.

Now though, a cheeky and even gleeful takedown of this idea has emerged from an unlikely source, a senior adviser at the Federal Reserve named Jeremy B. Rudd. His 27-page paper, published as part of the Fed's Finance and Economics Discussion Series, has become what passes for a viral sensation among economists.

The paper disputes the idea that people's expectations for future inflation matter much for the level of inflation experienced today. That is especially important right now, in trying to figure out whether the current inflation surge is temporary or not.

But the Rudd paper is part of something bigger still. It reflects a broader rethinking of core ideas about how the economy works and how policymakers, especially at central banks, try to manage things. This shift has also included debates about the relationship between unemployment and inflation, how deficit spending affects the economy, and much more.

In effect, many of the key ideas underlying economic policy during the Great Moderation — the period of relatively steady growth and low inflation from the mid-1980s to 2007 that also seems to be a high-water mark for economists' overconfidence — increasingly look to be at best incomplete, and at worst wrong.

It is vivid evidence that macroeconomics, despite the thousands of highly intelligent people over centuries who have tried to figure it out, remains, to an uncomfortable degree, a black box. The ways that millions of people bounce off one another — buying and selling, lending and borrowing, intersecting with governments and central banks and businesses and everything else around us — amount to a system so complex that no human fully comprehends it.

"Macroeconomics behaves like we're doing physics after the quantum revolution, that we really understand at a fundamental level the forces around us," said Adam Posen, president of the Peterson Institute for International Economics, in an interview. "We're really at the level of Galileo and Copernicus," just figuring out the basics of how the universe works.
...
"It has been a noble lie that has become a critical part of the catechism of global monetary policy, that long-term inflation expectations are not just interesting but are a decisive determinant of real-time inflation," said Paul McCulley, a former Pimco chief economist, commenting on Mr. Rudd's paper.

... [Also] for years central bankers believed there was a tight relationship between the unemployment rate and inflation, known as the Phillips Curve. Over the course of the 2000s, though, that relationship appeared to weaken and become a less reliable guideline for how to set policy.

Similarly, interest rates and inflation fell worldwide, for reasons that scholars are still trying to understand fully.
...
 
The need for a graduated property tax

Skip to about 13:15 for this news item about a "disturbing" home-buying trend:

[YOUTUBE]https://www.youtube.com/watch?v=FTMadRVRr44[/YOUTUBE]

0:00 ________________________________________ 13:15 ___

It's becoming more common now for home purchases to be that of companies rather than individuals. The news story makes it sound like this is something to be alarmed about.

E.g., in one Atlanta neighborhood about 35% of the homes are owned by a Wall St. investment firm.

Whether there is anything alarming about it or not, there is here a new revenue source opportunity for states. It may be OK for the practice to continue, as these companies become a kind of middleman between the ultimate home-owners/renters and the sellers, similar to ticket-scalpers, who serve a legitimate role in the economy. Or, then again, maybe a disincentive is needed here to reduce this practice.

But regardless whether it's a bad trend, the states can use this as a way to increase revenue, and maybe it would be a very significant source of new revenue.

One way or another, these companies could be taxed extra on these property transactions, by having a tax on properties which is higher on owners with higher total property ownership. Probably the tax would be limited to ownerships above a certain minimum total value, like $5 million, or $10 million total value, so small owners would be unaffected.

Even a graduated SALES tax.

And the tax could be more than just an annual tax on the property, but also a sales tax on transactions, so that there is also a revenue source based on the sales and not just the ongoing ownership.

These home-buying companies would become very efficient at paying such a tax, as it becomes routine for them in comparison to individual home-buyers who would have difficulty with it when they do a one-time purchase.

Perhaps home-buying is done better by a business rather than individuals each transacting their purchase/sale according to just their one-time need, so it's more efficient for the individual to just turn it all over to the company buying and selling/renting many properties.

But these companies then are very profitable from the economies-of-scale gains from this, and they could easily pay a much higher tax rate.

So tax these ownerships and sales based on a graduated scale, making the tax rate higher for higher total values of real estate accumulated by a buyer/owner. So, e.g., a company with $20 or $30 million total property value would pay a higher rate than an owner with only $1 million total value, and an owner with $200-$300 million total value would pay a higher rate than one with $20-$30 million total value. Etc.

(The tax has to be structured similar to that of graduated income tax so that there's no disincentive to crossing the line up to a higher "bracket" level.)
 
Mortgage 900
Rent 1300
Lender: you don't have enough income to qualify for that mortgage so go keep paying rent and get back to us when you get more experience.
 
Mortgage 900
Rent 1300
Lender: you don't have enough income to qualify for that mortgage so go keep paying rent and get back to us when you get more experience.

It sounds silly but it's true: "Being poor is expensive."
 
Mortgage 900
Rent 1300
Lender: you don't have enough income to qualify for that mortgage so go keep paying rent and get back to us when you get more experience.

It sounds silly but it's true: "Being poor is expensive."

It sure is! And where I live, you aren't even allowed to be homeless. Cops will routinely check the areas where the homeless are known to settle for as long as they can, usually by the lake, close to a beach where there are bathrooms and showers available. I myself was told by the cops, when I was found sitting on a public bench at three o'clock in the morning, that I could not stay there, and when I told them I had nowhere else to go, they told me there was no "overnight camping" allowed in the city, or loitering. I explained that in three hours the store I was sitting in front of would open, so I could buy something and move on. No go. I could not just sit and wait. So, they nicely asked me if they could bring me somewhere, somewhere I would be safe? I told them I had had an altercation at home and could not return. Finally they asked if I had money, which I did. They offered to drive me into town to take me to a motel room. I agreed, but reluctantly, as motel rooms are expensive, and it's hell getting a smoking room.

And so it goes, and most people on the down low have it FAR worse than I could ever have. I am working steadily now, saving money, and will soon be on my own, free from my crazy family. I have to work for only another five years - though I will try and work until I am 67. I WILL NOT continue working if and when I reach my seventies. I have worked enough. I have put in enough time, and paid more than my share in taxes. I would rather be dead than have to work as an old man - it is shameful that anyone should have to.
 
Mortgage 900
Rent 1300
Lender: you don't have enough income to qualify for that mortgage so go keep paying rent and get back to us when you get more experience.

Rent has to include property tax and maintenance, as well as it's unlikely the property is always 100% occupied. Beyond that property management services tend to run about a month's rent per year.
 
Mortgage 900
Rent 1300
Lender: you don't have enough income to qualify for that mortgage so go keep paying rent and get back to us when you get more experience.

Rent has to include property tax and maintenance, as well as it's unlikely the property is always 100% occupied. Beyond that property management services tend to run about a month's rent per year.

Oh the burden Wall Street investors have to go through.
 
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It sounds silly but it's true: "Being poor is expensive."

On the other hand ...
Oh the burden Wall Street investors have to go through.
Yes. To listen to some American right-wingers, one would think billionaires are the worst-treated among us, taxed out of all their hard-earned wealth and often forced to emigrate to ghettoes in the Caribbean or the South of France.
 
Skip to about 13:15 for this news item about a "disturbing" home-buying trend:

[YOUTUBE]https://www.youtube.com/watch?v=FTMadRVRr44[/YOUTUBE]

0:00 ________________________________________ 13:15 ___

It's becoming more common now for home purchases to be that of companies rather than individuals. The news story makes it sound like this is something to be alarmed about.

E.g., in one Atlanta neighborhood about 35% of the homes are owned by a Wall St. investment firm.

Whether there is anything alarming about it or not, there is here a new revenue source opportunity for states. It may be OK for the practice to continue, as these companies become a kind of middleman between the ultimate home-owners/renters and the sellers, similar to ticket-scalpers, who serve a legitimate role in the economy. Or, then again, maybe a disincentive is needed here to reduce this practice.

But regardless whether it's a bad trend, the states can use this as a way to increase revenue, and maybe it would be a very significant source of new revenue.

One way or another, these companies could be taxed extra on these property transactions, by having a tax on properties which is higher on owners with higher total property ownership. Probably the tax would be limited to ownerships above a certain minimum total value, like $5 million, or $10 million total value, so small owners would be unaffected.

Even a graduated SALES tax.

And the tax could be more than just an annual tax on the property, but also a sales tax on transactions, so that there is also a revenue source based on the sales and not just the ongoing ownership.

These home-buying companies would become very efficient at paying such a tax, as it becomes routine for them in comparison to individual home-buyers who would have difficulty with it when they do a one-time purchase.

Perhaps home-buying is done better by a business rather than individuals each transacting their purchase/sale according to just their one-time need, so it's more efficient for the individual to just turn it all over to the company buying and selling/renting many properties.

But these companies then are very profitable from the economies-of-scale gains from this, and they could easily pay a much higher tax rate.

So tax these ownerships and sales based on a graduated scale, making the tax rate higher for higher total values of real estate accumulated by a buyer/owner. So, e.g., a company with $20 or $30 million total property value would pay a higher rate than an owner with only $1 million total value, and an owner with $200-$300 million total value would pay a higher rate than one with $20-$30 million total value. Etc.

(The tax has to be structured similar to that of graduated income tax so that there's no disincentive to crossing the line up to a higher "bracket" level.)

I saw that story on the news and I was shocked that so many investors are buying up so many properties in metro ATL. For those who didn't watch the video, the problem is, that investors pay cash and close on the sales very quickly, which has made it very difficult for the average buyer to have their offer accepted. After watching that on the news, I began to wonder if that is why so many people are moving to my small city, which is 40 miles south of ATL. With or without the investors, property in ATL has become unaffordable for the average middle class buyer.

It's still affordable where I live, but who knows how long that will last? Plus the commute to ATL or the nearby suburbs is a nightmare. I don't know how people can stand it. I had a job in ATL in the mid 90s, and we lived 25 miles north of ATL. It was horrible. Sometimes I was in traffic for well over an hour and a half. ATL was affordable back then. The average rent in ATL is over 1500 per month now. How are low income workers supposed to afford that? We have a huge problem in this country when it comes to affordable housing. I don't see a plan to change that. That's heartbreaking.
 
Mortgage 900
Rent 1300
Lender: you don't have enough income to qualify for that mortgage so go keep paying rent and get back to us when you get more experience.

Rent has to include property tax and maintenance, as well as it's unlikely the property is always 100% occupied. Beyond that property management services tend to run about a month's rent per year.

Oh the burden Wall Street investors have to go through.

The point is there are legitimate reasons for rent to be higher than a mortgage on the same property.
 
Oh the burden Wall Street investors have to go through.

The point is there are legitimate reasons for rent to be higher than a mortgage on the same property.

Yeah 400 dollars in the example provided keeps young folks from having the burden of equity.... investment equity in a community they can benefit. No shit. Man have you ever just got out of bed without slippers?
 
Oh the burden Wall Street investors have to go through.

The point is there are legitimate reasons for rent to be higher than a mortgage on the same property.
Yes there is. Someone buys a home to live in will have the mortgage of 900 to pay. Someone buying the home to use as a rental property will also have a mortgage of 900 to pay. Whoever holds the mortgage will also have property tax to pay, insurance to pay, maintenance and upkeep to pay for. So whoever holds the mortgage has a monthly expense much higher than the 900 mortgage expense. If it is a rental property then the rent will have to be set at, at least, enough to cover the cost to the owner.
 
Oh the burden Wall Street investors have to go through.

The point is there are legitimate reasons for rent to be higher than a mortgage on the same property.
Yes there is. Someone buys a home to live in will have the mortgage of 900 to pay. Someone buying the home to use as a rental property will also have a mortgage of 900 to pay. Whoever holds the mortgage will also have property tax to pay, insurance to pay, maintenance and upkeep to pay for. So whoever holds the mortgage has a monthly expense much higher than the 900 mortgage expense. If it is a rental property then the rent will have to be set at, at least, enough to cover the cost to the owner.

Exactly. So either:

a) Nobody would ever be so dumb as to buy a property to rent out, because any potential tenant who could avoid defaulting on his rent would already have bought a home, and so the only possible tenants would be deadbeats; or

b) There's an anticipation of an offsetting benefit to the landlord, over and above the rental income, and the market is rigged in favour of those with access to capital to allow them access to that benefit, at the expense of denying that investment opportunity to those who do not have that access.
 
Yes there is. Someone buys a home to live in will have the mortgage of 900 to pay. Someone buying the home to use as a rental property will also have a mortgage of 900 to pay. Whoever holds the mortgage will also have property tax to pay, insurance to pay, maintenance and upkeep to pay for. So whoever holds the mortgage has a monthly expense much higher than the 900 mortgage expense. If it is a rental property then the rent will have to be set at, at least, enough to cover the cost to the owner.

Exactly. So either:

a) Nobody would ever be so dumb as to buy a property to rent out, because any potential tenant who could avoid defaulting on his rent would already have bought a home, and so the only possible tenants would be deadbeats; or

b) There's an anticipation of an offsetting benefit to the landlord, over and above the rental income, and the market is rigged in favour of those with access to capital to allow them access to that benefit, at the expense of denying that investment opportunity to those who do not have that access.

Personally, I think buying rental property is a piss poor idea... there are better investments that don't involve dealing with problems of managing rental property. But I do understand the reasoning of some who have convinced themselves that it is a great investment (I know a couple of them). They expect a little positive cash flow for maybe ten or so years by which time they think the value of the property will have increased dramatically. At that point they expect to sell out and reap a great profit.

ETA:
In this area, most renters are people that will only be here for a few years so don't want the hassle of buying and then trying to sell a house. They are primarily students or military personnel.
 
Yes there is. Someone buys a home to live in will have the mortgage of 900 to pay. Someone buying the home to use as a rental property will also have a mortgage of 900 to pay. Whoever holds the mortgage will also have property tax to pay, insurance to pay, maintenance and upkeep to pay for. So whoever holds the mortgage has a monthly expense much higher than the 900 mortgage expense. If it is a rental property then the rent will have to be set at, at least, enough to cover the cost to the owner.

Exactly. So either:

a) Nobody would ever be so dumb as to buy a property to rent out, because any potential tenant who could avoid defaulting on his rent would already have bought a home, and so the only possible tenants would be deadbeats; or

b) There's an anticipation of an offsetting benefit to the landlord, over and above the rental income, and the market is rigged in favour of those with access to capital to allow them access to that benefit, at the expense of denying that investment opportunity to those who do not have that access.

Renters may not plan to be there long. If you have frequent job relocations, rent.

Rent greatly reduces your surprise bill factor.
 
Yes there is. Someone buys a home to live in will have the mortgage of 900 to pay. Someone buying the home to use as a rental property will also have a mortgage of 900 to pay. Whoever holds the mortgage will also have property tax to pay, insurance to pay, maintenance and upkeep to pay for. So whoever holds the mortgage has a monthly expense much higher than the 900 mortgage expense. If it is a rental property then the rent will have to be set at, at least, enough to cover the cost to the owner.

Exactly. So either:

a) Nobody would ever be so dumb as to buy a property to rent out, because any potential tenant who could avoid defaulting on his rent would already have bought a home, and so the only possible tenants would be deadbeats; or

b) There's an anticipation of an offsetting benefit to the landlord, over and above the rental income, and the market is rigged in favour of those with access to capital to allow them access to that benefit, at the expense of denying that investment opportunity to those who do not have that access.

Renters may not plan to be there long. If you have frequent job relocations, rent.

Rent greatly reduces your surprise bill factor.
Yawn, like the sale of an investment.
I could curse here. Out loud and you'd hear it.
 
Crybaby-panderers hijack topic


A different topic was hijacked by some Crybaby Economics crusaders, who feel an impulse to tell "working class" crybabies what they want to hear, but don't have the integrity to put this forth as a topic for its own sake, which it deserves. The fact that they cannot present this topic per se for discussion, but are driven to sneak it into a different topic is an indication that their Crybaby Economics theories are false, and cannot be defended in a straightforward honest debate, but have to be slipped in under cover of darkness.

These phonies of course will not ever put this topic forth as an honest discussion, with critical questioning of the protectionist pseudopatriotic immigrant-bashing and foreign-bashing and employer-bashing rhetoric which they always have to fall back on.


(The particular posters are not identified here, so I hopefully won't be accosted with warnings from the powers-that-be accusing me of being "abusive" or "overly aggressive" or "threatening" to them. I have explained what "Crybaby Economics" is and am entitled to use this language to describe those who fit this category, as the following do.)

The topic hijacking begins from a Trumpster labor union fanatic who is pleased that his job was protected from foreign competition by demagogue Trump, who seems to be winning the popularity contest with Bernie Sanders in their rivalry to win over the populist crybaby voting bloc:


Who do you think shrank the economic pie for everyone for 30 years in the lower middle class? Hint: It began with Clinton and NAFTA.

There are 2 lies contained in this Crybaby Economics outburst:

1) The expanded trade under NAFTA increased the economic pie for ALL classes, from lowest to highest. The fact that some uncompetitive wage-earners might have had probems with it does not change the fact that the vast majority are now better off as a result, even including those who had to change to a different livelihood. That someone has to change does not mean their "economic pie" shrank overall.

2) The change referred to really began with the Reagan Administration, not Clinton. The lie that it began with Clinton is a phony attempt to try to deflect blame (CREDIT) for this away from the Republicans and to the Democrats, because this crybaby rant is a clumsy bumbling attempt to promote the Red/Trump/Republican China-bashing crusade which began mostly with Trump and which has attached itself like a parasite to the new Republican Party which has turned into a mob of pseudopatriotic xenophobic populist crybabies and crybaby-panderers in search of a new Evil Empire or Conspiracy upon which to unleash their hate.


It certainly wasn't the deplorables who shipped high value manufacturing jobs to China away from themselves.

Those jobs were NOT high-value. They could easily be done by millions of low-skilled workers in virtually any country, and those U.S. workers were easily replaceable, meaning they were LESS valuable, because that which is easily replaceable is by definition worth less because the supply of it is high rather than low. It's not your personal feelings or impulses which determines the value, but the law of supply-and-demand, and by that "law" anything in much greater supply is much lower in value. And only an idiot could lack the brain capacity to figure out why something in greater supply is lower in value (and price).


one crybaby-panderer rebuffing another:

I don't know what rock you've been living under for the last 3 decades.

But NAFTA was a Republican plan. One Republican talking point in the 1992 campaign was that Clinton wouldn't sign it. But Clinton did throw blue collar workers under the bus when . . .

No, what he did by signing NAFTA and expanding trade was to expand the U.S. economy for all consumers, giving us all more choice and increasing the living standard for all. That some blue collar workers were uncompetitive and had to change was part of that economic expansion, which benefited all Americans. Whining for a few uncompetitive ones who had to change is an example of crybaby-pandering. It's always the uncompetitive crybabies (and panderers) who complain about the evils of expanded trade = expanded competition.

No one has ever shown how expanded competition throws anyone "under the bus" except in the sense that a few uncompetitive ones have to change, for the good of the whole economy = all consumers.

. . . he didn't need their votes any more. (He did the same thing to gay people, signing DOMA and DADT) The Democrats were moving steadily to the right.

And guess what? The Big Exodus of USA manufacturing jobs and the bulk of the influx of undocumented workers happened during the Bush Administration.

Which was good for all Americans. More competition is always better for the economy, i.e., for the vast majority, i.e., for all consumers. No one can show how increased competition ever made the economy worse off. The only problem with "undocumented workers" is that they were not allowed to become documented so this good increase of workers could happen legally. The truth is that without the large number of "undocumented workers" in our economy, we'd all be worse off, because there'd be much less production and higher prices. That's the truth which the crybabies cannot face up to.



All that, plus banking deregulation, resulted in the Republican Recession of 2007.

The Dems-Repubs Recession of 2007 was due to many causes. But only the crybabies and crybaby-panderers attribute it to the increased competition due to foreign and immigrant labor. This increase in competition always benefits the economy, just as it did from the late 19th century up to the 1920s. Then the crackdown on foreign and immigrant labor triggered a negative trend which contributed to the Great Depression of the 1930s, turning what should have been another normal recession into the worst depression in history.



The Dems have abandoned the working class in favor of cultural issues and immigrants.

It's true that some of them are tired of the labor union demagoguery and their Crybaby Economics to protect the least competitive workers who need to change instead of just whining and whining forever and demanding pity. And also they recognize the contribution of immigrant workers. But this is not any abandonment of Americans, as we are all made better off by the increased competition in the economy. Even most wage-earners and poor are made better off by the improved production = increased supply. It's a lie to say that this abandons "the working class" -- it only puts some of the less competitive under greater pressure to change and improve themselves.

Pressure to change and improve does not abandon anyone. Real abandonment is to insist on keeping uncompetitive workers in low-value factory jobs, or even to artificially create more factory jobs to put them in because this is thought to be the best way to keep them off the streets. That's the real abandonment of them, not putting more pressure on them to become more competitive so consumers (= all of us) are served better.



The working class doesn’t care about pronouns, gender neutral bathrooms, or cultural appropriation. They care about keeping their jobs and limiting mass migration.

translation: they're crybabies. But no, that's a lie. It's not true that they are such uneducated thoughtless imbeciles that they cannot understand the value of improving themselves, becoming more competitive, and growing up to become better performers in the economy. Trump and Bernie Sanders are liars to imply that the workers are too stupid to change and become something more valuable than common factory workers, and that immigrants must be excluded in order to protect our uncompetitive crybaby workers who are incapable of changing.


Not too long ago even Bernie Sanders argued that mass immigration was a Koch brothers plot for cheap labor. Trump took up the mantle of protecting jobs and limiting immigration - which was Dem policy a generation ago.

translation: our workers are worthless crybabies who must be kept in their low-value factory jobs, protected against competition which would turn them into an unemployed mob of pillagers on a rampage.

In this scenario, the Koch brothers are the producers, improving the economy by seeking less costly labor = higher supply and lower prices for the benefit of all consumers. While Trump and Bernie Sanders are demagogue crybaby-panderers, i.e., self-styled heroes doing what they think is necessary to appease the crybabies so they don't turn into the rampaging mob of pillagers.

In this dichotomy of demagogues vs. competitive producers, it's the Koch brothers we need, with their instinct to improve production (and profit), not the Trump-Sanders demagogues pandering to the paranoid uncompetitive to keep them on the plantation in their uncompetitive factory jobs or protect them against foreign invaders trying to steal their jobs. What we need are not the crybabies and their demagogues, but the producers rich and poor who change as needed, according to market demand.


The Democrats moved hard to the right, starting with Slick Willy, and then the Republicans had to go even further to maintain market share.

I agree with Sanders, the Bush Administration encouraged undocumented workers to keep the cost of labor down while increasing consumption. That's perfect for corporate profits.

Correction -- it's perfect for ALL Americans = ALL consumers = the economy. Not just corporate profits. It's only Crybaby Economics which wants to demonize profit, even that which is productive for the country. When profiteers produce net benefit to all consumers, it's good that they reap those profits. It's good not only for them, but also for us all, for all consumers who benefit from the better production.

Keeping down the cost of labor is good for ALL consumers, who have to pay the cost. It is fundamental to Crybaby Economics to hate all profit, even that which is good because it rewards the producers for their improved performance. What the crybabies cannot understand is that the profit, and also the higher wage, is the reward for improved performance, not their Entitlement.

What we need is MERIT, not Entitlement -- for rich or poor.


Trump lied about protecting blue collar workers, and they bought it.

That's debatable. But what is certain is that the more these demagogues pander to any one class, such as "blue collar workers," the more they inflict damage onto the whole economy = all consumers who have to pay the cost for it. You cannot pander to a limited class of crybabies unless it's done at the expense of all the other classes rich and poor. And everyone is a fool who buys the false promises of these demagogues, even when they do keep their promises and give the crybabies what they demand. Because then all the rest of us have to pay the cost = lower standard of living for everyone outside the narrow class of crybabies being pandered to.

So even if the demagogue is not lying but actually makes good on those promises to the crybabies, he still is inflicting damage onto all others, including the poor, who have to pay the cost.


Same as when they voted for Clinton in 1992.

Clinton made us all better off by continuing the policy of expanded trade. 100% of Americans today are better off as a result of this (or at least 99%). Just because changes happened does not mean we're worse off. And also, the new trade laws contained defects, because these were not truly 100% free trade changes, and so whatever negative results may have followed were due to the protectionist measures which the crybabies demanded and got included in the deals that were struck.


I'm talking about the "deplorable" folks you mentioned that voted for Trump because they consider cultural and immigration issues less important than their jobs. Which I understand is many of those jobs were borderline obsolete anyway.

One grown-up statement among the above jumble of crybaby and crybaby-pandering lies which are popular among today's mindless masses who don't understand the law of supply-and-demand and the role of profit motive and competition in making the economy perform better.

These dishonest Crybaby Economics topic-hijackers are refuted in Economics 1A, and also were refuted 200+ years ago by Adam Smith, where the benefits of competition are made clear.
 
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I'm sure your overall point is correct. But I'm not sure that the number of workers adversely affected by moving manufacturing jobs overseas is tiny. Many American workers had blue-collar jobs that paid quite well, but are now too old to retrain or find a new job easily. Are there any statistics on this? How many workers sustained a steep and long-term wage reduction due to the decline of American manufacturing?

On another matter, I think economics discussions here would be more fruitful and more pleasant if less pejorative were directed at one's debating opponents.
 
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