President Donald Trump announces 5% tariff on all goods from Mexico

Jul 2014
14,387
8,737
massachusetts
Take a stats course, goober. Correlation is not causality. There are other reasoned arguments to make that explain why wage growth was higher then than now.

We can start with the basics of supply and demand. There were far fewer workers available for good paying jobs back then. Women and minorities were effectively excluded from the work force for all but certain, lower paying jobs. Add to that the availably of off-shore labor over the last two decades; with information technology, managers need not be in the same physical location as those they manage. In short, the glory days of wage growth you describe was a time when employers had their choice of domestic, white men. Shorter supplies (of labor) mean higher prices (wages).
1930 - 1980 distribution of wealth becomes less concentrated, middle class has an increasingly larger share of the total wealth, every year.
1981-present distribution of wealth becomes more concentrated, middle class share of wealth decreases every year.

Correlation with tax rates is 100% over an 89 year period, that's a hefty indicator to be dismissing, based on nonsense dogma......
 
Likes: RNG
Dec 2018
2,711
852
New England
1930 - 1980 distribution of wealth becomes less concentrated, middle class has an increasingly larger share of the total wealth, every year.
1981-present distribution of wealth becomes more concentrated, middle class share of wealth decreases every year.

Correlation with tax rates is 100% over an 89 year period, that's a hefty indicator to be dismissing, based on nonsense dogma......
You're conflating income stagnation and and an income gap. The two are not the same.

Explain how the math works: you tax the 1% at a higher rate and middle class wages increase, why?
 
Dec 2015
16,456
15,289
Arizona
Well, let's start with your ideas on minimum wage. Why do you think raising the price of a service (in this case, labor) will not lead to people buying less of that service? Do price increase have no effect on your purchasing behavior?
Stop thinking like a Republican. The American voters buy what they want to buy. Yeah, they may wait for Black Friday and yes, they may buy on layaway or credit, but the poorest among us buy iPhones and the latest greatest technology. They buy those pricey toys for Christmas. If McDonald's Big Macs go up $.25 they'll continue buying Big Macs. They will keep going out to dinner with the whole family.
Smart companies can manipulate supply and demand. In fact, they already do, via choosing their locations, their marketing, & their demand (think Starbucks).
Of all the cockamamie ideas, Starbucks' Howard Schultz takes the cake....errr...coffee. So Schultz approaches his potential backers (He needs $1.7 million) with this idea: 1) Coffee sold at little stores--go OUT for coffee. 2)Coffee sold in paper cups. 3) Coffee sold for about $2.00 ($.65/cup was about the going rate in 1986). AND what happened? The Seattle place was a great success, and 300 people visited it during its first working day.

The fact is that this GOP Econ 101 is a farce--just another misleading application. They've been proven wrong a million times but keep repeating the same theme song, hoping SOMEONE stupid will listen.
 
Likes: FrostKing
Jul 2014
14,387
8,737
massachusetts
You're conflating income stagnation and and an income gap. The two are not the same.

Explain how the math works: you tax the 1% at a higher rate and middle class wages increase, why?
Everything is connected, tax the wealthy at a higher rate, fund more entitlements.
Pay for schooling, pay for infrastructure, lower taxes on the middle class, the middle class benefits.
The "Greatest Generation" received free college, no money down subsidized mortgages, and a host of benefits, that is what higher taxes do.
 
Likes: Clara007
Dec 2015
16,456
15,289
Arizona
Everything is connected, tax the wealthy at a higher rate, fund more entitlements.
Pay for schooling, pay for infrastructure, lower taxes on the middle class, the middle class benefits.
The "Greatest Generation" received free college, no money down subsidized mortgages, and a host of benefits, that is what higher taxes do.
The oldest, most over-used cliche on the books is the definition of insanity and there's a reason it's repeated so often. Guess which political party uses it the most!
 
Dec 2018
2,711
852
New England
Stop thinking like a Republican. The American voters buy what they want to buy. Yeah, they may wait for Black Friday and yes, they may buy on layaway or credit, but the poorest among us buy iPhones and the latest greatest technology. They buy those pricey toys for Christmas. If McDonald's Big Macs go up $.25 they'll continue buying Big Macs. They will keep going out to dinner with the whole family.
Smart companies can manipulate supply and demand. In fact, they already do, via choosing their locations, their marketing, & their demand (think Starbucks).
Of all the cockamamie ideas, Starbucks' Howard Schultz takes the cake....errr...coffee. So Schultz approaches his potential backers (He needs $1.7 million) with this idea: 1) Coffee sold at little stores--go OUT for coffee. 2)Coffee sold in paper cups. 3) Coffee sold for about $2.00 ($.65/cup was about the going rate in 1986). AND what happened? The Seattle place was a great success, and 300 people visited it during its first working day.

The fact is that this GOP Econ 101 is a farce--just another misleading application. They've been proven wrong a million times but keep repeating the same theme song, hoping SOMEONE stupid will listen.
Wow, quite a rant.

I'm asking you a simple question of economics. Do you or do you not believe in the economic principle that says price has an influence on demand?
 
Dec 2015
16,456
15,289
Arizona
Wow, quite a rant.

I'm asking you a simple question of economics. Do you or do you not believe in the economic principle that says price has an influence on demand?
OH--you thought THAT was a rant...? Maybe we need to discuss a more in-depth definition of "RANT"??
Your question is not a simple yes or no. I've explained what I think about that theory. Sorry I didn't make myself clear but if I must answer I will say this:
The price does not ALWAYS have an influence on demand. It depends on the product, marketing, and location. Obviously, if consumers want the product BADLY enough, they'll spend the money. Examples: A $2 paper cup of coffee. A $1500 iPhone.
A $2000 Mac laptop. A $40,000 Ford Explorer. A $200 Barbie Dream House. Dinner for 4: $80.00 @ Outback.
 
Dec 2018
2,711
852
New England
OH--you thought THAT was a rant...? Maybe we need to discuss a more in-depth definition of "RANT"??
Your question is not a simple yes or no. I've explained what I think about that theory. Sorry I didn't make myself clear but if I must answer I will say this:
The price does not ALWAYS have an influence on demand. It depends on the product, marketing, and location. Obviously, if consumers want the product BADLY enough, they'll spend the money. Examples: A $2 paper cup of coffee. A $1500 iPhone.
A $2000 Mac laptop. A $40,000 Ford Explorer. A $200 Barbie Dream House. Dinner for 4: $80.00 @ Outback.
I think what you're trying to say is that there are other things that can influence demand in addition to price, yes?