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Economic crises are a way to redistribute wealth from spenders to savers. This prevents that natural function.
by cheez 6y ago
Economic crises are a way to redistribute wealth from spenders to savers. This prevents that natural function.
- designium 6y agoOnly issue in your rationale is that the savers are usually the ones who own the "Capital". I'm not in the circle but my boss social economic strata, his type of people are buying Ferraris during Covid. Not sure how can an average household can afford to spend $250K for a car like that now. But there are MANY of those in Canada doing it NOW. Not trying to insinuate anything here, but I'm giving you some data points to show that it's not just a matter of moving money from spenders to savers, but there are other things involved.
- cheez 6y agoMy point is that those people are protected from economic crisis while the rest are not.
- phone8675309 6y agoAre you surprised that the wealthy, with the power they wield and the money they have, are much more connected to the levers of power and much more adept at working them giving their connections and wealth?
- cheez 6y agoNope
- frequentnapper 6y agoman it sucks. I'm one of those savers and have been waiting for my turn to be able to buy a home for last 5 years. I was hoping the house prices would come down to affordable level, but they are on fire again! What's the point of being responsible when spending and borrowing like there's no tomorrow will guarantee you help from govt?
- deleted 6y ago[deleted]
- didibus 6y agoI'm a saver myself for the most part, but the economy is not designed around saving. Its designed around moving "pending" money towards growth areas. For example, a bank only agrees to hold onto your money, because it will actually spend it for you. Whenever you "saved" money, unless it was in your own coffin of gold, you actually just gave it to someone else to spend it with the promise that whenever you want it back they'll have it. That said, if the market crashes, they won't have it. Because the bank's plan to "have" your money when you ask for it is actually to give you someone's else's. Cause your money has already been spent, either loaned to someone who wanted to buy a house, or start a business, etc. That means if all those loans defaults, the bank actually won't "have" your money, it'll have lost it. This is at a high level (from my understanding), why the government always bails out banks and bank related markets like home loans. If the bank go broke, everyone's money is gone.
- qqqwerty 6y agoAt least in the U.S., savings and checking accounts are FDIC insured. So savers would likely be made whole in the event of a bank run.
- frequentnapper 6y agobut only up to 250k
- votepaunchy 6y ago250K per person per bank per account type.
- WrtCdEvrydy 6y agoAlthough it could take years to get a payout. FDIC is basically just saying "we'll pay it out of taxes'. The whole thing is a shell game.