Economy: Family net worth plummets nearly 40%

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Re: Economy: Family net worth plummets nearly 40%

Postby DCB » Tue Jun 12, 2012 8:24 pm

gargantua wrote:
Rich Schultz wrote:So your solution is to make everybody poorer?

This is such an off-base, simplistic response to what Fisticuffs said that I'm surprised anyone even bothered to respond to it.

Yes, of course. Leftist democrats want 100% income equality.

Unlike the Republicans, who want extreme income inequality.

Its really that simple.

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Re: Economy: Family net worth plummets nearly 40%

Postby gargantua » Tue Jun 12, 2012 8:38 pm

100% income equality isn't practical and I don't think desirable. Someone who just sits around doing nothing all day shouldn't have the same income as someone who works his or her butt off. Maybe this means I'm not a leftist Democrat, although I have been called a leftist by someone who has expertise in these matters. At least he says so.

Everybody thought the 50"s and 60's were pretty cool from an economic standpoint, right? So how about we go back to a 1960's level of income inequality?

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Re: Economy: Family net worth plummets nearly 40%

Postby Donald » Tue Jun 12, 2012 9:58 pm

No one thinks equality is going to happen, but one thing I've noticed in forty years of working is that you could get rid of the CEOs and most of the upper level management of most large companies and corporations, and the productive work of the business would still get done. The upper levels in a company are pretty worthless. They do nothing all day, unless endless meetings where nothing is produced, counts as something.

If someone really wants to generate profits get rid of the least productive, most costly people at the top, and pay the productive people what they are worth.

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Re: Economy: Family net worth plummets nearly 40%

Postby Cornbread » Tue Jun 12, 2012 10:03 pm

snoqueen wrote:This has got a lot to do with poor regulation of big financial institutions, which threw us into the mortgage loan crisis, and that's where families lost a lot of their net worth -- their houses.

The whole problem is government involvement in the housing/financial industry. But this happened in the 80s with the S&Ls problem of disintermediation. But seeing as you've told me you've taken the freshman level business 101....I thought I'd share that with you. ;)

And also, the exponential "growth" in valuation of real estate was also driven by government regulation/mandates in the financial/housing sectors. It was all fake, driven by personal/structural/government greed, personal/government ignorance, and of course, government's social engineering and vote pandering.

Sorry guys and gals for getting into a little bit of detail.
I know this board, like many other leftist board are more about one or two word slogans and personal attack.

"the rich"

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Re: Economy: Family net worth plummets nearly 40%

Postby snoqueen » Tue Jun 12, 2012 10:25 pm

I love visuals and details. Here's a nice series of graphics showing various income comparisons over time: ... ality.html

(takes a moment to load, but not forever -- click the purple triangle to page through the slides.)

They show the US income differential started shifting in 1979 at a point they call the "Great Divergence." (This is close enough for me to my own "when it started to go to hell" point which is 1980.) Read the text to the right of the slides for their explanations.

From text accompanying Slide 3:

...much of the Great Divergence was driven by a stunning rise in income for the top 1 percent (who today earn about $368,000 or more). This group's share of national income more than doubled, from 8 percent in 1973 (the end of the Great Compression) to 18 percent in 2008.

And from Slide 4:

If the top 1 percent are the Rich, the top 0.1 percent (who today earn about $1 million or more) are the Stinking Rich. Since 1979, their income share hasn't doubled; it's quadrupled.

Conservatives, do not despair. Slide 8 and its text show that

Tax cuts for the rich certainly contributed to the Great Divergence. But it would be hard to argue, based on this data, they were a major factor.

Instead, they put a lot of blame on the education system, and find a striking difference between what happens when each of the two major political parties was in power. See the last slide, Slide 10, for how that looks and for some reasons: ... l#slide_10

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