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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Alighieri who wrote (587807)	9/28/2010 11:50:48 AM
From: TimF	Read Replies (2) \| Respond to of 1575429

So there is no process by which wealth transfer occurs in reverse in your "real world"? There is plenty of wealth transfer (or perhaps more accurately income transfer) in the real world, but the direction is from the wealthy (who pay a larger percentage of their income in taxes), to the less than wealthy (who are eligible for more government transfer programs, and who pay less in taxes, particularly in federal income taxes where many are not net payers at all) The economy is affecting the poor far more than the rich That could mean different things, but I'd agree that generally they feel the impact of bad times to a greater extent. Even the rich that go bankrupt normally have a lot more to fall back on. the gap between rich and poor has never been larger That might be part of an argument for something, but it doesn't amount to much of an argument by itself, and I don't consider it an important conclusion in isolation. Or in simpler terms - So what? It doesn't show a transfer from the poor to the rich, again the transfer is the other way around. The rich over time have created more and more wealth with their work and investments. So they have gotten richer. The wealth that they created improved the situation of the non-rich, even if in the very recent years it may not have improved that situation as much (in the US) as we might prefer. The rich get richer (except for the rich criminals, and the rent-seekers that I mentioned in my post to Ted) primarily by growing the pie. If they add 10 percent and they get 9 percent of that addition, then yes things will be more unequal, but its a positive gain all around. They aren't taking the 9 percent from the poor.

To: Alighieri who wrote (587807)	9/28/2010 12:46:57 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 1575429

Al, > So there is no process by which wealth transfer occurs in reverse in your "real world"? Let me put it this way. The more people think that government is out to rescue them, the more they will be swindled by the schemes of the rich and powerful. > The economy is affecting the poor far more than the rich... Recessions often do that. This was one of the primary motivators for Keynes to advocate government propping up economies and smoothing out the business cycle. Worked well until the 1970's. Tenchusatsu