- Joined:
- Jun 25, 2010
- Posts:
- 20,010
- Liked Posts:
- 9,558
- Location:
- Next to the beef gristle mill
My favorite teams
Our money is basically worthless..It isnt backed by gold or anything anymore.
And I understand your value that if someone with money is buying stuff it puts money into the pockets of others and allows them to buy things. That is true. The thing is in this country you have people who have so much money there is no way they can possibly spend it all. Most of them just horde it in investment accounts (in which that money just circulates among other rich people) and the money doesnt do the economy a whole lot of good.
Yes, this is true. The gold standard was great, and it still is a standard of some sorts, however the currency problems didn't grow until Nixon decided to pull the last plugs on the gold standard for defining a credit line for the economy. Unfortunately we are also at some form a victim to the "evil rich" who want everyone to spend hundreds of thousands on college, to gain almost nothing of value in the real world. If the government did not fund the majority of schooling, then colleges would fail, although that does not mean higher institutions of learning would cease to exist by any means, maybe with privatizations, we may see more real value education. We lock onto this idea of traditionalism, and don't even pay attention to where this money is going.
And venturing into tax cuts. The idea of supply-side economics was to put more money into the riches hands so they would use it to expand their businesses and hire more workers and spend more on goods in the economy. It works temporarily, but then suffers because they just start hording their money. Its been true in 1929, 1987, and now 2008. Its been tried 3 times in the countries history and led to the same thing all three times.
Thanks to establishing the power of the FED, which fails to use any form of democracy or capitalism. And also thanks to establishing the federal income tax. The Great Depression, stagnations and recessions of the current and past have all happened because the politicians with expertise in winning elections felt they knew better than the rest of us, when it comes to our day to day lives.