07-24-2018, 01:16 PM
I agree with both Beaker and Fred overall.
One thing is for certain is that the gap between the top 1% and the rest of us peasants is widening. And it goes beyond simply working harder. After reading more and more into this, I am trying to educate myself more on how the Federal Reserve has played into it. Back in 2015, a Forbes article like many others pointed out the reduced interest rates handed down by the Fed, ran by Bernanke, :
"Virtually all economists agree that the Fed’s low interest rates have been responsible for inflating stock market values. By reducing the returns to savings accounts, certificates of deposit and bonds, the Fed has intentionally driven ordinary investors to increase their investment allocation to the stock market, thereby boosting stock returns. Because people with more wealth tend to own more stock, those higher stock prices have led the rich to gain much more than the poor and middle class.
Low interest rates have meant low borrowing costs for large corporations with direct access to capital markets. This low-cost borrowing has boosted corporate profits which also flow mostly to the wealthy." https://www.forbes.com/sites/jeffreydorfman/2015/10/29/rand-paul-is-right-the-fed-is-increasing-inequality/#7b2685f16452
That is one of many articles that point out the effects of what the Federal Reserve policies can do. Just do a search for "federal reserve income inequality". Again, I am no expert on this at all, just a newb reading into it. But I do think it is worth reading into for more info, whether to agree or disagree with it.
Problem with reading all this stuff it's like reading about some neural brain surgery technique that is written in some code only doctors can understand. Which is why I believe how banks and the Federal Reserve can get away with issues like this because no one understands what a lot of they do.
Of course this imo is part of the problem of the widening gap. Better education for the poor through 12th grade would help a lot. Better access and loans for the poor for trade schools and perhaps college would help. Better minimum wage laws state-to-state based on economic factors within those states to keep up with inflation. Etc.
One thing is for certain is that the gap between the top 1% and the rest of us peasants is widening. And it goes beyond simply working harder. After reading more and more into this, I am trying to educate myself more on how the Federal Reserve has played into it. Back in 2015, a Forbes article like many others pointed out the reduced interest rates handed down by the Fed, ran by Bernanke, :
"Virtually all economists agree that the Fed’s low interest rates have been responsible for inflating stock market values. By reducing the returns to savings accounts, certificates of deposit and bonds, the Fed has intentionally driven ordinary investors to increase their investment allocation to the stock market, thereby boosting stock returns. Because people with more wealth tend to own more stock, those higher stock prices have led the rich to gain much more than the poor and middle class.
Low interest rates have meant low borrowing costs for large corporations with direct access to capital markets. This low-cost borrowing has boosted corporate profits which also flow mostly to the wealthy." https://www.forbes.com/sites/jeffreydorfman/2015/10/29/rand-paul-is-right-the-fed-is-increasing-inequality/#7b2685f16452
That is one of many articles that point out the effects of what the Federal Reserve policies can do. Just do a search for "federal reserve income inequality". Again, I am no expert on this at all, just a newb reading into it. But I do think it is worth reading into for more info, whether to agree or disagree with it.
Problem with reading all this stuff it's like reading about some neural brain surgery technique that is written in some code only doctors can understand. Which is why I believe how banks and the Federal Reserve can get away with issues like this because no one understands what a lot of they do.
Of course this imo is part of the problem of the widening gap. Better education for the poor through 12th grade would help a lot. Better access and loans for the poor for trade schools and perhaps college would help. Better minimum wage laws state-to-state based on economic factors within those states to keep up with inflation. Etc.
“Don't give up. Don't ever give up.” - Jimmy V
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