Wealth addiction

Teachers have not received a raise in six years where I live. Times are booming.

 

And we all know teacher pay increases are the #1 indicator of recession or boom times.

 

Then what is? They are the largest employer in almost every county in America.

 

Typically it's defined by GDP growth or contraction in successive quarters. The whole economy, though, not the teacher economy. For instance, GDP grew at an annualized rate of 4.1 percent for the third quarter.

http://www.usatoday.com/story/money/business/2013/12/20/economy-gdp/4140667/

 

Yet the majority of Americans are still not feeling it.

 

Yeah, Google the words "jobless recovery." It's a thing.

But by no means are we in a recession, nor have we been in one for quite some time.

 

You're thinking of this place all wrong.

As if I had the money back in a safe. The money's not here. Your money's in Joe's house...that's right next to yours. And in the Kennedy house, and Mrs. Macklin's house, and a hundred others.

Why, you're lending them the money to build, and then, they're going to pay it back to you as best they can. Now what are you going to do? Foreclose on them?

http://youtu.be/_Er69b4HMl8

 

It doesn't really matter if we're in a technical recession (based on GDP growth). Whether savings are growing the economy or not depends on the demand for savings. If everyone, when given the opportunity, will opt for savings over spending, it doesn't matter how much money is in a bank, they can't find someone to loan it out to, since everyone has a bias for savings over spending. (Said another way, even a 0% interest rate loan won't have any takers).

In normal times, my savings becomes your spending, through the lending process. But in times of depressed demand for spending (or excessive demand for savings) then this isn't true.

 

Trickle-down economics. The WAVE of the future!

 

Potter IS the 1 percent.

 

No one has used that phrase. I'm not sure anyone has even thought it. I don't see what it has to do with any of this.

You made a comment - that wealth addicts are "hoarding" their wealth, which stops wealth from circulating "throughout society."

Well, they aren't. Far from it. They invest their money, thus circulating it, "throughout society." You are welcome to make a more nuanced argument, like LTL has, that the way in which they circulate it does not help the middle or lower classes, for particular reasons. But the idea that they are keeping their wealth in a mattress somewhere is just demonstrably false, and you were rightly called on it.

 

Did you ever think that the people putting the thoughts out that money in banks is circulating through society are the ones profiting from money staying in banks and are the ones with the ability to actually put money in banks?

You say you are correct. Others are saying you are incorrect.