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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (61267)	3/23/2005 12:53:02 PM
From: elmatador	Read Replies (1) \| Respond to of 74559

Momentarily, the already rich get poorer. It is akin to that brief period of time when introducing a new technology throws people out of work, since older jobs are destroyed faster in the old sector than are created in the new. Perhaps I need to make this sharper: <<That will last a couple of decades until it reassert itself once again.>> It goes like that: 1) Politicians try to keep the old structure (welfare) in place and the populace, fails to see that things are changing. (see Germany and France) 2) Ordinary people elect and support politicians that promises keeping the status quo or pursue redistribution as you put. But the script doesn't wait for them. It keeps playing. 3) While this is happening, or perhaps as a result of that, capital pours into other countries and they start getting -relatively- rich. Freeze frame this and look at it. It is where we are right now. I am totally and absolutely clueless as how it will develop from here until it reassert itself. I'm playing with some outcomes: At times I think: People will not revert to a state of poverty and accept that as their fate. But as Sweden shows, they have been, slowly, getting -relatively from 3rd higher income to about 20th- poorer and have accepted that as a fact of life. Perhaps, younger people in richer countries will revolt against the burden of subsidizing elderly and polarize the society, between old and young. Younger people will emigrate and give up their nationality in seek of greener pasture, moving away from the burden of supporting the older generation. I'm still thinking...

To: energyplay who wrote (61267)	3/23/2005 3:01:38 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 74559

EP, My father used to walk, or ride on horse and gig. The wealthy had cars [Model T type]. Now everyone has a car, complete with air-con, electric this that and the other. The wealthy traveled by slow boat to China. I will travel on two-storey Airbus 380 at 1000 kph non-stop to the other side of the world. The wealthy had a sextant for navigation. The less wealthy eyed the stars and lighthouses. Now anyone can afford a GPS unit. The wealthy corporations, universities and governments had slow-witted room-sized computers. Now everyone has super-computers on their knee and even in their cyberphone. etc... Therefore, everyone is now wealthy. The dopey idea that wealth is something that needs to be spread around shows a fundamental lack of understanding of what wealth is. What they really mean is 'envy of money'. Other people have lots of money and without doing anything useful for them, jealous people want to take it from them by force. <Hi El Mat - I don't think that moving more people out of poverty into productive activities means a drop in total wealth or even much of a relative redistribution of wealth. The US domestic experience shows that making other people richer doesn't make the already rich poorer. > You'd think it's obvious. There are several wealthy countries to show how it's done. Mqurice