3 ms·

What empirical evidence are you referring to that says rich people aren't investing their money? And if it is the case that they are indeed investing, where do

What empirical evidence are you referring to that says rich people aren't investing their money? And if it is the case that they are indeed investing, where do you suppose China's investment-centric economy is getting capital from? Who do you suppose is paying Chinese workers manufacturing goods for American corporations? If you leave out unskilled workers (whose share of capital went offshore), wage growth among skilled American laborers has been very high... which is also what you'd expect from trickle-down.

jhayward 8y ago
> where do you suppose China's investment-centric economy is getting capital from? From the Chinese central bank, which has massively expanded the economy through low interest rates and easy credit. Wealthy people are are investing their windfalls, but not in production, but rather in rent-seeking FIRE assets. Those assets do not create middle- and lower-class wage jobs, in fact they suck income out of those classes. > wage growth among skilled American laborers has been very high You will have to support this with more than just an assertion. The wages for skilled trades, for instance, have not nearly kept up with inflation. Skilled manufacturing, same. Some of the professional categories, like software development, have seen some growth - but the outliers in SF/NY are outliers, not the median nationwide. Doctors net less, lawyers are mostly destitute unless they are in the 10% who make it in biglaw, and so on and so on.
- nwienert 8y ago
  Can you cite the Chinese low interest rates? The BLR is 4.3% according to this[0] is there something else going on? [0] https://tradingeconomics.com/china/bank-lending-rate https://tradingeconomics.com/china/bank-lending-rate
  - jhayward 8y ago
    China started to rein in the massive debt economy earlier this year. Current rates are not indicative of the past, and official rates don't reflect the enormous "shadow banking" industry that has been at the heart of the debt boom.[1] [1] https://www.ft.com/content/45bd8052-59dc-11e8-bdb7-f6677d2e1ce8 https://www.ft.com/content/45bd8052-59dc-11e8-bdb7-f6677d2e1...

jhayward 8y ago

> where do you suppose China's investment-centric economy is getting capital from? From the Chinese central bank, which has massively expanded the economy through low interest rates and easy credit. Wealthy people are are investing their windfalls, but not in production, but rather in rent-seeking FIRE assets. Those assets do not create middle- and lower-class wage jobs, in fact they suck income out of those classes. > wage growth among skilled American laborers has been very high You will have to support this with more than just an assertion. The wages for skilled trades, for instance, have not nearly kept up with inflation. Skilled manufacturing, same. Some of the professional categories, like software development, have seen some growth - but the outliers in SF/NY are outliers, not the median nationwide. Doctors net less, lawyers are mostly destitute unless they are in the 10% who make it in biglaw, and so on and so on.

nwienert 8y ago
Can you cite the Chinese low interest rates? The BLR is 4.3% according to this[0] is there something else going on? [0] https://tradingeconomics.com/china/bank-lending-rate https://tradingeconomics.com/china/bank-lending-rate
- jhayward 8y ago
  China started to rein in the massive debt economy earlier this year. Current rates are not indicative of the past, and official rates don't reflect the enormous "shadow banking" industry that has been at the heart of the debt boom.[1] [1] https://www.ft.com/content/45bd8052-59dc-11e8-bdb7-f6677d2e1ce8 https://www.ft.com/content/45bd8052-59dc-11e8-bdb7-f6677d2e1...