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Too much money and too few places to invest it

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Re: Too much money and too few places to invest it

#91

Post by chiefalchemist »

siculars wrote: post #49
dev_dull wrote: post #14

Earlier quoted context omitted.

It’s trickled down but in narrow bands. For example, starting salaries in the Bay Area are up big in the last decade, partly because of an influx of easy money into tech growth tech companies. However, much of that goes directly into the pockets of land owners. Ultimately the winners in QE are those that own the finite resources.

Ya, and? Isn't that always the case - the owners of finite resources profit. Is there some other way it would be?

> " the owners of finite resources profit"

That's not the issue. The issue is the Fed tilted the game in the favor those already winning the game. And as a friendly reminder, no one elected the Fed.

Re: Too much money and too few places to invest it

#92

Post by chiefalchemist »

Spooky23 wrote: post #36
cstrat wrote: post #11

Earlier quoted context omitted.

I can't see how the continued erosion of the middle-class is not going to have huge impacts on the livelihood of everyone else.

There was a thread earlier today where people on a site catering to tech people were commenting on how they cannot afford to have children. When people are rejecting reproduction and family to play video games and go on vacation, that’s an impact.

I don't want to get off-topic but the birth rate is an unspoken reason why we have 12+ million "undocumented workers". Immigration is proxy for population growth, which in turn is an easy way to "grow" the economy.

Obviously, propping up the economy in that way has helped to spark socio-political issues. Long to short, the Fed is "against" the middle class and immigrants are taking the brunt of the blame for it.

FYI - It was my comment this sub-tread is from.

Re: Too much money and too few places to invest it

#93

Post by chiefalchemist »

internet_user wrote: post #27
cstrat wrote: post #11

Earlier quoted context omitted.

I can't see how the continued erosion of the middle-class is not going to have huge impacts on the livelihood of everyone else.

It already has? We are living it right now.

Agreed. The future __is__ already here. It's just unevenly distributed, literally.

Re: Too much money and too few places to invest it

#94

Post by chiefalchemist »

dev_dull wrote: post #38
komali2 wrote: post #26

Earlier quoted context omitted.

If only tariffs caused manufacturing facilities to return to the USA. They don't, though. Here's a great map of the net negative effects tariffs have on the state of your choosing: https://www.uschamber.com/tariffs

I realize that tariffs are controversial given the current political climate, but they really are one of the best ways to claw back money from large corporations and reward unskilled labor in the US. We need to bring manufacturing jobs back to the US. The loss of those jobs disproportionately affected minorities. Increases in corporate tax is easily avoided by domicile changes. Tariffs are a simple way to restore bal…

Perhaps. But also keep in mind that in bringing back that manufacturing we'll be bringing back the ecological issues (read: pollution) as well. There's always an unintended consequence or two.

Re: Too much money and too few places to invest it

#95

Post by komali2 »

dev_dull wrote: post #38
komali2 wrote: post #26

Earlier quoted context omitted.

If only tariffs caused manufacturing facilities to return to the USA. They don't, though. Here's a great map of the net negative effects tariffs have on the state of your choosing: https://www.uschamber.com/tariffs

I realize that tariffs are controversial given the current political climate, but they really are one of the best ways to claw back money from large corporations and reward unskilled labor in the US. We need to bring manufacturing jobs back to the US. The loss of those jobs disproportionately affected minorities. Increases in corporate tax is easily avoided by domicile changes. Tariffs are a simple way to restore bal…

Do you have evidence to support your claim? I ask because in my experience this is one of those "sure, makes sense" situations (like "just build a wall!") that, when actually taken in the context of real world economics, doesn't work.

Re: Too much money and too few places to invest it

#96

Post by fastball »

NTDF9 wrote: post #13
fastball wrote: post #3

Earlier quoted context omitted.

If you pay your workers more you have less money for investment opportunities...

> If you pay your workers more you have less money for investment opportunities... Why are workers not an investment? Are your workers only encouraged to hit nails with hammer or can you think of ways to incentivizee them to innovate and do better than competition? Oh wait, you must be a short-sighted employer.

That is obviously not what is being discussed here.

Re: Too much money and too few places to invest it

#97

Post by Spooky23 »

chiefalchemist wrote: post #92
Spooky23 wrote: post #36

Earlier quoted context omitted.

There was a thread earlier today where people on a site catering to tech people were commenting on how they cannot afford to have children. When people are rejecting reproduction and family to play video games and go on vacation, that’s an impact.

I don't want to get off-topic but the birth rate is an unspoken reason why we have 12+ million "undocumented workers". Immigration is proxy for population growth, which in turn is an easy way to "grow" the economy. Obviously, propping up the economy in that way has helped to spark socio-political issues. Long to short, the Fed is "against" the middle class and immigrants are taking the brunt of the blame for it. FYI…

That's a great point, thanks for making it.

Personally, I grew up in a rural area in NY that is basically being systematically wiped away, because of these policy decisions made in a vacuum that few people understand.

People blame "the other" and get caught up in racist nonsense. Meanwhile, we're reverting into ancient latifundia and turning into a society where basic human needs aren't being met.

Re: Too much money and too few places to invest it

#98

Post by chiefalchemist »

Spooky23 wrote: post #97
chiefalchemist wrote: post #92

Earlier quoted context omitted.

I don't want to get off-topic but the birth rate is an unspoken reason why we have 12+ million "undocumented workers". Immigration is proxy for population growth, which in turn is an easy way to "grow" the economy. Obviously, propping up the economy in that way has helped to spark socio-political issues. Long to short, the Fed is "against" the middle class and immigrants are taking the brunt of the blame for it. FYI…

That's a great point, thanks for making it. Personally, I grew up in a rural area in NY that is basically being systematically wiped away, because of these policy decisions made in a vacuum that few people understand. People blame "the other" and get caught up in racist nonsense. Meanwhile, we're reverting into ancient latifundia and turning into a society where basic human needs aren't being met.

Another FYI - In Europe (e.g., Germany and France) a similar thing has happened. The difference there is a noticeable percentage of the immigrants are Muslim (and are generally less inclinced to assimilate). I remember reading a couple of years ago that soon enough (read: 25 to 50 years?) - if current trends continue - Muslims will be the majority in Germany. So while Germ's economy has fared well as of late, it might be sitting on a cultural powder-keg if the economy stagnates.

As for Japan's economic stagnation of the last couple decades? Relatively low immigration.

Re: Too much money and too few places to invest it

#99

Post by fastball »

beamatronic wrote: post #10
vkou wrote: post #5

Earlier quoted context omitted.

This only works when everyone pays their workers more. It's in your benefit to defect. And besides, it's just as likely that instead of your employees buying your cars, their landlord/medical insurer/kid's college will take whatever wage gains they make.

Prisoners dilemma vs. velocity of money?

Tragedy of the commons.

Re: Too much money and too few places to invest it

#100

Post by [deleted] »

chiefalchemist wrote: post #91
siculars wrote: post #49

Earlier quoted context omitted.

Ya, and? Isn't that always the case - the owners of finite resources profit. Is there some other way it would be?

> " the owners of finite resources profit" That's not the issue. The issue is the Fed tilted the game in the favor those already winning the game. And as a friendly reminder, no one elected the Fed.

[deleted]
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