Skip to main content

View Diary: Book Review: Kevin Phillips' "Bad Money" (143 comments)

Comment Preferences

  •  private debt ... (5+ / 0-)

    Your argument is about public debt, and perhaps with further analysis and deeper thinking, we might be able to draw useful and interesting conclusions about debt payment policies.

    However, I've been reading Both American Theocracy and Bad Money, and Kevin Phillips' real argument is much more focused on private debt rather than public debt.

    A part of his thesis holds that the financialization of the U.S. economy, and consequent excess private debt masked from view by "advanced financial instruments" is leaving this economy vulnerable.

    So, while it's OK do debate public debt (and keeping money in circulation rather than sequestering it), that's not the discussion that Kevin Phillips, Warren Buffet and other minds greater than mine are having.

    On a topic related to public and tax-funded money management: I am curious whether anyone else has noticed that funneling money or resources into "the poor" keeps that money in circulation in those communities?

    I hypothesize that money flows through the pjockets and wallets of "the poor" exceptionally quickly, circulating back into the community practically instantly. This money hits grocery stores, landlords, the community in general without hardly slowing down as it flows through the hands of "the poor".

    Money funneled into the accounts of "the rich" does become sequestered. When it does move, it moves much further away from the local community toward much more sophisticated, but much more remote communities of interest.

    The result (I hypothesize) is that money that is "misspent" on the poor is much healthier for local communities than money "properly directed" to the rich.

    I believe your theory of sequestration would be able to inform this discussion. Thoughts?

    •  to summarize (0+ / 0-)

      Trickle down only works for the people at the tip of the pyramid. The mythos that the people at the tip of the pyramid will magically transform what we give them into a rain of plenty falling on the rest of us is called neoliberalism this generation. While a rain happens afterwards, it's yellowish and smelly. I know of NO historic exceptions to this.

      Trickle up as practiced in the New Deal and the post-WW2 programs that built infrastructure, housing, and sent people to college built the biggest national economy the world has ever seen even with (or because of) a 91% marginal tax rate.

      Looking for intelligent energy policy alternatives? Try here.

      by alizard on Sun May 25, 2008 at 10:52:29 PM PDT

      [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site