Trump 2.0 official thread

PiSigma

PiSigma

"the engineer"
plawolf said:
The only think that trickles down is shit and piss.

Trickle down economics is at best pure fantasy, and most likely deliberate fraud by the wealth to justify them stealing the lion share of a nation’s economic wealth for themselves.

The economic reality is that if you want to maximise economic growth, you should distribute wealth to the poor, not the rich.

For poor people, giving them a 1000 of them $1000 extra disposable income each will generate at a minimum $1000 of short term general consumption, since they will have been suppressing consumption previously since they could not afford to consume what they actually need. That $1000 is then likely to balloon into $2-3k additional consumption via the multiplier effect.

But if you give that same $1,000,000 to one billionaire and you are not going to see much if any additional consumption, since the billionaire already had more than enough wealth to consume to the limit of his appetites. At most you might get him buying an extra Rolex or similar hyper-inflated ultra luxury item that generates almost zero multiplier effect, since the profit margins on those are so high it’s basically a parallel closed loop economy where the ultra wealth basically trade amongst themselves and just add a bunch of zeros of the end of prices.

The principle justification for trickle down economics is that concentrating wealth at the top gives those lucky 0.1%ers the opportunity to invest. Which would have been truth if the stock markets weren’t totally divorced from reality, so all the ‘investing’ in stocks and shares only serves to pump an equity bubble instead of leading to anything actually being built that could lead to more employment and increased production.

This is terminal stage capitalism, where greed has been allowed to run rampant so long that the economic indicators and measures of wealth are no longer even approximately correlating with reality that normal economic principles no longer apply.

At the end of the day, at its core, Finance and Economics is supposed to be about the measurement and allocation of finite resources. That doesn’t work at all when you have manufactured phantom ‘wealth’ worth many times your actual resources. The normal result of this is hyperinflation. But the west has managed to create a band-aid to delay the inevitable in the form of Trickle down economics theory.

The fact that trickle down economics is bullshit and doesn’t add consumption and actually suppresses it is precisely why America needs to do it, to trap as much as the excess phantom ‘wealth’ in hyper inflated luxury goods like mega-yachts, sports cars, ‘art’ etc as possible so the inflationary impact doesn’t spill over too much to the general population.

Otherwise imagine what would happen if the trillions of phantom wealth of the top 100 richest people were given to the poor and they immediately went to spend it all on everyday items, hyper inflation as demand vastly outstrips supply.
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Totally agree except on one point. No self respecting millionaire or billionaire will buy just another Rolex. I have my eye on a A Lange & sohne and a Patek.
 
Maikeru

Maikeru

Major
Registered Member
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S

sndef888

Captain
Registered Member
It's really funny to finally watch Europeans realise how much of a bitch they are of the Americans

Especially defence after the recent veto on Gripens, not to mention full control over their social media, cloud computing, telecoms, technology, USD hegemony etc

These are things that this forum has been talking about for years and Europeans are somehow only realising now

Yes, Europeans, you are an economic colony, nothing to be surprised about.
 
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