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View Diary: The rich don't spend tax cuts (117 comments)

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  •  Definition of rich (9+ / 0-)

    If someone gave you $100k, what would you do with it?

    If your answer is "Save it until a good investment opportunity appears", you're rich.

    That's pretty much what these articles say - give a middle class guy $10k, and he pays off his credit cards, or maybe he guys a really nice entertainment suite for the family room.

    In theory, there is no difference between theory and practice; but in practice, there always is a difference. - Yogi Berra

    by blue aardvark on Thu Sep 16, 2010 at 06:40:49 AM PDT

    •  Let's throw in a definition of Middle Class (3+ / 0-)

      while we're at it.  I'm thinking it's not $5mil/year as McCain tell us.  And let's define what a "Mom and Pop" small business is too.  
      They're bullshitting their way through as usual and now would be a good time to make it clear.

    •  That's where the TARP money and the (4+ / 0-)

      trillion in back-door bank bailouts should have gone....Bush's $600 bribe, only x10.

      Give every person over 18 $50 grand and the banks' problems never would have fucked up our lives.  Most of that money would have gone to them, keeping that house of cards from falling on us.  Houses up to date on the mortgage, credit scores restored due to debt payoff meaning more people could refinance out of fraudulent mortgages.  It would have saved everyone.

      •  even 10 grand to everyone over 18 (1+ / 0-)
        Recommended by:

        that's enough to put away someone's car loan, <bam> now they have an extra 2-300 dollars a month they can do other things with. (like pay off their credit card)

      •  No, the problem is the financiers' ability (0+ / 0-)

        to siphon the money out of the economy and keep it from circulating.  The Treasury can print more and has (there is now more money technically in circulation than ever before), but if Wall Street keeps capturing its cuts and sequestering the money in their vaults, it's a losing proposition.  While the volume of money is at an all-time high, the velocity of the dollar's circulation in the economy has slowed from something like 2.5 times for every dollar of GDP to 1.2.  We're not getting the multiplier effect because the stuff has slowed to the speed of molasses.
        Banks not lending to Main Street is one piece of evidence.  But, the reluctance to lend to Main Street has been going on for most of a decade.  Washington subsidizing small business loans hasn't made a significant difference, except in adding to the transfer of public assets into private wealth.

        The Constitution is not a menu for an exclusive diner.

        by hannah on Thu Sep 16, 2010 at 09:37:55 AM PDT

        [ Parent ]

    •  People getting out of debt is not (0+ / 0-)

      a desideratum for the interest-earning class.  While you haven't heard about it much, the national savings rate has actually increased to over 5% overall, not just the wealthy hoarding class.  That means the middlemen who thrive on collecting rent on our money are losing out.
      China is partly to blame.  By buying Treasury bonds they are keeping the Fed from raising rates and increasing revenue from that source.
      We're in the middle of a game of chicken.  It's my sense and my hope that Obama won't blink.

      The lovely thing about money is that if you just hoard it, it becomes more and more worthless since it's value lies in being used in trade and exchange.

      The Constitution is not a menu for an exclusive diner.

      by hannah on Thu Sep 16, 2010 at 09:30:55 AM PDT

      [ Parent ]

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