david ellis, on 02 January 2012 - 05:09 PM, said:
You are fine with high inequality. It seems fair to you. Half of the United States is poor. When you add to the 9% unemployed, the part time folks who want full time jobs, the folks who have given up on finding a job, the unemployment rate is 25%, and you think every thing is fine. I call a depression, an economic emergency. Archie Bunker used to call it "Tinkle down economics". In the 19th century, where it came from, they called it "horse shit" economics. Because the birds would be fine, there is plenty of seed in the droppings. No surprise to us on the down side of the tinkle that inequality is high. But for you, the natural order of things.
No regret for you that there is not enough jobs for college graduates. No regret for you that demand is low and american factories are shut down. No wonder in you why American CEO's get paid higher multiples than any country. Do they really deserve it? The rest of the world thinks not, and doesn't pay like we do. Isn't it possible that American CEO's have too much power? What a crazy train thought!
How unpleasant that you blame "low level American workers" for their unemployment. The rest of us are proud of American workers.
Look at Germany and tell me why we should not admire their success. What is wrong with having full employment? I think the fact that they have full employment and don't have neo-liberal nuts running their country is not a coincidence.
I never said I was OK with low wages and unemployment. To the contrary, I think America is getting royally screwed but the country is doing it to themselves while they scream and yell about big banks/wall st, taxing the rich, and other stupid class warfare stuff courtesy of Obama.
9 out of 10 copies of MS Windows in China are pirated. The vast majority of movies made in Hollywood and sold on the streets of China are pirated. Patented drugs that were designed by American companies are routinely copied and produced by Indian/Chinese manufacturers who flout IP laws.
If America doesn't care about being paid for all the intellectual property it created over the last hundred years, no wonder the country runs a trade deficit and is going broke. If the attitude of Americans is that it's OK to let China just wholesale loot all the IP of American companies (companies that the OWS seem to mostly hate because they are "the man"), then there will be less jobs.
If Microsoft doesn't get paid for the things they create, then they won't hire as many people. Those people won't buy cars or eat out at restaurants, and so on.
To be sure, there is huge pressure on the lower education spectrum of the American population because they now have to compete for some of the same jobs with China/India. And this will continue, but it's not the whole story and taxes to "redistribute" incomes between different groups really isn't the answer.
And to quickly respond:
1. American CEOs don't really have that much power.
2. Germany is not a model that is comparable to the US. They are basically coasting along with the benefit of a lower currency value (Euro) because their neighbor states (Greece, etc.) are a disaster. If they were sitting as their own currency again, they would not have the same trade benefit, same employment rate, and instead would have a higher currency value and their goods would cost more. It's like me saying we should only look at Texas in the US and ignore any states like Michigan. it's not reality.
3. Inequality will remain high. Tax rates are low around the world. If you tax people, they will just leave. The CEO of transocean left the US and moved to Switzerland for a reason. Taxes. People are mobile. High value workers can perform their job anywhere.