4 ms·
The velocity of money has fallen off a cliff since 2008 [1]. Money is not moving, that is bad for the lower, middle and most of all upper class and corporation
by drawkbox 11y ago
The velocity of money has fallen off a cliff since 2008 [1].
Money is not moving, that is bad for the lower, middle and most of all upper class and corporations.
Consumer driven economies with policies that kill off consumer buying power is a bad mixture. Wage stagnation and money that moves like molasses isn't a recipe for growth. Companies can only do buybacks for so long.
The trend is not good and CEOs don't see that changing [2].
About a third of respondents expect corporations to become more competitive within three years. Assessments of every element of the U.S. business environment improved between a 2011 survey and this latest one. The growing optimism "seems to reflect the cyclical rebound of the U.S. economy," the report said.
But what do business leaders see coming for workers in the next three years? Only 27 percent expect workers to enjoy higher pay, while 41 percent said wages and benefits would be falling.
Destruction of lower/middle consumer class since the 70s clearly charts in the shares of gross domestic income to persons [3], the long slide.
[1] https://research.stlouisfed.org/fred2/series/M2V https://research.stlouisfed.org/fred2/series/M2V
[2] http://www.npr.org/sections/thetwo-way/2014/09/08/346902566/harvard-study-says-economy-is-doing-half-its-job-guess-which-half http://www.npr.org/sections/thetwo-way/2014/09/08/346902566/...
[3] https://research.stlouisfed.org/fred2/series/W270RE1A156NBEA https://research.stlouisfed.org/fred2/series/W270RE1A156NBEA
- cryoshon 11y ago>But what do business leaders see coming for workers in the next three years? Only 27 percent expect workers to enjoy higher pay, while 41 percent said wages and benefits would be falling. I read this, and I am at ease, because it means that the end is in sight. Eventually, the system will collapse under its own horrid weight, and we can have another go at making a good society.
- philovivero 11y agoI think you underestimate how much a revolution sucks.
- cryoshon 11y agoNah. A revolution will suck a ton, just that it's inevitable if the current system of "rape the poor so that the rich can buy more vacation houses" continues.