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To: GBA
Trickle down is the norm and part of the cycle of capitalism.

citation needed

Unfortunately, these aren't normal times and we aren't really a capitalist, producer nation/economy any longer.

Sure we are. America is still the number one (maybe number 2) manufacturer in the world.

Instead, we have become a government economy of consumers that produces debt, exports natural resources and consumes goods and services other nations produce for us.

Consumers always drive job creation. No consumers, no business. So the way to solve the problem is to enact policies that help put cash in the hands of those most likely to spend it, i.e. the lower 80%. It doesn't have to be done through a raw exercise in government power.

Politicians and the Fed have gamed the system and so altered the national landscape that trickle down now comes as pain: that which flows from taxes and regulations and government's politically determined distribution, rather than that which comes via natural market forces.

What are these "natural market forces" you are talking about?

11 posted on 12/31/2012 9:10:59 AM PST by ksen
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To: ksen
Sure we are. America is still the number one (maybe number 2) manufacturer in the world.

Once upon a time, perhaps, but looking at labels, I see that Walmart and Target no longer shop here. Both of the vehicles in my garage were assembled here from parts made elsewhere. The clothing I'm wearing used to be made a few miles down the road from me by average skilled people, but now it's all made by someone else in some other country from cotton grown here.

Those consumers you speak of are borrowing to consume using zero interest money. They, individuals, families, cities and states, aren't saving in the good years, they are partying hearty thinking it will last forever.

There is a balance to things and cycles revolve around that balance. Unfortunately, the balance has been upset in favor of a state controlled artificial entitlement economy.

We can rewrite the natural laws where ever we find them as long as we have the money to do so, but the money ran out a long time ago.

There is a reckoning coming, but for now, this is the calm eye of the hurricane that can't last for very long. When the backwall gets here, we'll wish things were as good as after the crashes of 2008.

13 posted on 12/31/2012 9:52:02 AM PST by GBA (Here in the Matrix, life is but a dream.)
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To: ksen
What are these "natural market forces" you are talking about?

Please refer to Adam Smith for an explanation. I would only be paraphrasing him.

26 posted on 12/31/2012 11:10:12 AM PST by GBA (Here in the Matrix, life is but a dream.)
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