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True Rate of Unemployment

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Re: True Rate of Unemployment

#41

Post by psalaun »

xbmcuser wrote: post #17
runako wrote: post #11

Anybody who believes ~30% of the workforce was functionally unemployed in 1999 does not know what those words mean, or was not an adult in 1999. I get what they are trying to convey, but the stronger message is the more straightforward: there are too many jobs that do not pay enough to live on.

For me the true problem which most countries dont even acknowledge is low wealth and capital gains tax. Salaries are not enough because of land prices and the prices inflation it causes through out the economy. You bring down price of home land rent then price of everything else comes down. And their is a lot more economic activity as trillions of dollars are not parked in real estate for wealth generation.

I agree, but taxing real estate as an investment would break the wealth structure of many voters (and politicians) above the 80th percentile of wealth. For half a century, in France, it's been told that real estate was the safest/best investment for households; everyone was passively peer pressured each year, whatever the macroeconomic situation at the moment, to buy. This is a Ponzi scheme, so even the middle class households that recently bought their own shitty flat in Paris will never vote for such a tax because their overpriced asset would lose value and it's often their only lifelong investment.

The same fear will happen if you just target investors owning multiple real estate with this tax, or simply forbid by law from owning several flats in high demand areas. The right wing would scream that the hard working French guy won't be able to invest his hard won money, but the very rich foreigners from Saudi Arabia or investments funds from USA will find a loophole thanks to their infinite money and buy all the french real estate.

Hell, most people in my country are against inheritance tax despite a huge part of them not rich enough to pay it, meanwhile inequalities are rising because of inherited wealth. So taxing the land won't happen, the bourgeoisie has been too effective in its propaganda.

Re: True Rate of Unemployment

#42

Post by bruce511 »

snovv_crash wrote: post #39
ryan_lane wrote: post #29

Earlier quoted context omitted.

If a land value tax would fix rich people from parking money in real estate, it would price regular people out of real estate. I know LVT is the libertarian dream, but in practice it means only the rich can own real estate long-term, in most cities. It also means the rich can drive out the poor by driving up land values around them, to the point where the taxes are too much to afford. LVT simply wouldn't be a good sy…

LVT can be deferred to the time of sale.

Unfortunately that doesn't really help. It has the effect of eroding the asset value such that it quickly means the owner can't sell.

In other words, if selling removes much of your capital, you then don't gave capital to spend on the next place.

Conversely investors become even more motivated not to ever sell. They can defer the LVT forever, and just use the property as collateral for loans (ie getting liquidity without selling.)

And LVT just becomes an expense built into the cost of rent. The investor never pays it anyway, the tenant ultimately pays it.

Re: True Rate of Unemployment

#43

Post by jandrewrogers »

ElProlactin wrote: post #31
bpodgursky wrote: post #27

Earlier quoted context omitted.

This number is before transfers, you really cannot just look at the raw income. A family of 2 adult 2 kid making $22,500 in raw income makes more like $48,700 after refundable tax credits, SNAP, housing, etc [1]. https://www.google.com/search?q=average+us+income+including+...

Take a step back. A family of 4 with $22,500 in income is well below the poverty line in the US, which is ~$33,000/year. But do you think a family of 2 adults and 2 children with a "feels like" income of $50,000 is still not scraping by in the US? That's basic survival at best.

As someone who lived much of their life in real poverty, you can live a pretty decent life on $50k in most of the US. Yeah, you won’t be posting your vacations on Instagram but who cares. Many people live a decent life within these income constraints. There is an enormous amount of government subsidies if you are this poor.

Don’t exaggerate what is required for a decent quality of life in America. It doesn’t benefit anyone.

Re: True Rate of Unemployment

#44

Post by floro »

Everyone knows the stats are false but I don't know an alternative.

I've been unemployed after graduating for a year and because I didn't use unemployment benefits I didn't show up in the statistics in switzerland. I know many cases like mine.

Re: True Rate of Unemployment

#45

Post by forgetfreeman »

skrebbel wrote: post #32
runako wrote: post #11

Anybody who believes ~30% of the workforce was functionally unemployed in 1999 does not know what those words mean, or was not an adult in 1999. I get what they are trying to convey, but the stronger message is the more straightforward: there are too many jobs that do not pay enough to live on.

Soo was it more or less than that? Don’t leave us hanging like that!

Significantly less. Wanted a job? Walk through any neighborhood being built with a tape measure in your pocket. You'd have a job doing something before you made it past the 4th house. Had a car? Delivering food paid enough to afford a modest apartment.

Re: True Rate of Unemployment

#46

Post by naishoya »

ElProlactin wrote: post #8

> ...or does not earn a living wage, conservatively pegged at $26,000 (in 2025 dollars) annually before taxes. I couldn't easily tell how they decided on a $26,000 "living wage" figure but in most of the US, even double that is not Easy Street. The "True Rate of Barely Getting By" is ridiculously high in the US from what I can gather.

there is a cliff, such that a the 2 adults, 2 children on 22,500 gross income may have access to $48,700 after refundable tax credits, SNAP, housing, etc [linked in other comment].

However if that same household earns just $5,600 more annually nearly all of those transfers cease to be available and the total income accessible becomes $36,400. It really is a case where making more is too expensive. That's less than 110 extra pre-tax dollar per week across both adult earners, and so just about 1.35 an hour raise for each adult, or 2.70 for either one of them is a real loss of over 12,000 dollars. It takes nearly $5 an hour raise for BOTH adults at the 22,500 to become even minimally better than the loss of those transfers.

There is a significant number of households in the second quartile (at or slightly above 36.4K) than in the bottom quartile, and yet those are living on less than what has been defined as the 'survivable wage' by the 48.7K number

So yes, the "True Rate of Barely Getting By" is even higher than the number of households earning 26K would reveal.

Re: True Rate of Unemployment

#47

Post by fakedang »

jaredklewis wrote: post #26
xbmcuser wrote: post #17

Earlier quoted context omitted.

For me the true problem which most countries dont even acknowledge is low wealth and capital gains tax. Salaries are not enough because of land prices and the prices inflation it causes through out the economy. You bring down price of home land rent then price of everything else comes down. And their is a lot more economic activity as trillions of dollars are not parked in real estate for wealth generation.

A land value tax would fix rich people parking money in real estate. A wealth tax or capital gains tax would not.

A wealth tax would also be beneficial in reducing wasteful stock buybacks. Without any benefits from high stock prices, boards and shareholders will be less inclined to impose those price targets on CEOs, CEOs will be less incentivised to "cheat" on quarter-based performance and the myopic share price performance view of their companies, hence will reduce stock buybacks and returning money to shareholders. That leaves very few options - either reinvest into the company or pay out dividends, and the latter is unfavorable for shareholders compared to the former.

Re: True Rate of Unemployment

#48

Post by [deleted] »

annzabelle wrote: post #34

I have to wonder how much of this is "would like a full time job but has a part time job paying over 26k." Because of mandatory benefits (such as health insurance) for full time workers, a lot of companies only hire part time workers, but often people are making a living wage from those jobs. I'm not sure if a bartender making $50k+ (including untaxed tips) working 32.5 hours a week should count as unemployed.

[deleted]

Re: True Rate of Unemployment

#49

Post by [deleted] »

jaredklewis wrote: post #26
xbmcuser wrote: post #17

Earlier quoted context omitted.

For me the true problem which most countries dont even acknowledge is low wealth and capital gains tax. Salaries are not enough because of land prices and the prices inflation it causes through out the economy. You bring down price of home land rent then price of everything else comes down. And their is a lot more economic activity as trillions of dollars are not parked in real estate for wealth generation.

A land value tax would fix rich people parking money in real estate. A wealth tax or capital gains tax would not.

[deleted]

Re: True Rate of Unemployment

#50

Post by Aurornis »

snovv_crash wrote: post #39
ryan_lane wrote: post #29

Earlier quoted context omitted.

If a land value tax would fix rich people from parking money in real estate, it would price regular people out of real estate. I know LVT is the libertarian dream, but in practice it means only the rich can own real estate long-term, in most cities. It also means the rich can drive out the poor by driving up land values around them, to the point where the taxes are too much to afford. LVT simply wouldn't be a good sy…

LVT can be deferred to the time of sale.

Wealthy people would never sell their houses. Keep them in the family or rent them out.

Anyone who had to move for a job or wanted to downsize their house for retirement years would be screwed, though.

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