A question about economics
2.10.2009
If the whole world is in a recession, how come things don't just even out? Isn't it still a level playing field in this instance? Why can't the value of currencies/the cost of items just be adjusted? I hate economics. I hate money. I hate fat cats who complain about $500k salary caps while the rest of us would be content making 1/10 of that. Bastards.
posted by md @ 2:46 PM
3 Comments:
my opinion:
I think it's a matter of perspective. We're not in a recession that is new, the recession had merely been extended to claim yet more of the middle income. Even in the most prosperous of times, most of the world has still lived in abject poverty. The reasons are always the same - ridiculous tax and/or spending policies concentrate wealth - thereby eliminating its availability to the general populace.
War, finance, capital markets, etc - each of these industries represent gross consolidations of wealth without any productive return*. The owners of these industry reap immense profits without the impetus to reinvest or redistribute as a government might do. When people in government talk about government spending being an economic problem, that couldn't be further from the truth. It's a lack of spending of any kind, but especially a lack of spending into things that don't have lasting value (infrastructure, health, education, technology) which cause economic ruin.
* People talk about how good a military base or contract can be for a town, but that benefit is merely the result of keeping the town employed, there is no productive output that benefits the greater good. It's essentially the "paying people to dig holes & fill 'em back up" problem.
you don't hate real fat cats, right? like you love joey?
i couldn't agree more with your economic confusion. if we make money. like print it. then why don't we just print more. and if we say we have a $3 trillion dollar debt...why don't we just say the we don't anymore. how can i be in debt to myself?
Joey is a wonderful cat.
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