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This is what people have been speculating will happen with the rise of the K-shaped economy. An economy where a smaller and smaller number of consumers are resp

This is what people have been speculating will happen with the rise of the K-shaped economy. An economy where a smaller and smaller number of consumers are responsible for more and more of consumption. I think the problem is a sort of self-correcting one though because when the cuts start to bleed deep enough that people can no longer afford food or basic amenities that's when people start to get violent. Unfortunately that also tends to be very bad for economic outcomes.

Ferret7446 4mo ago
That premise is kind of false though. Food stamps are very generous, much to the chagrin of the borderline tax contributors. I think we'll just see benefits slowly ramp up until most people are on benefits, with lots of consternation around government waste along the way.
- zephen 4mo ago
  > Food stamps are very generous Certainly not in Texas. A single person, who makes $910/month before taxes, rent, transportation, clothes, and insurance, could spend a lot of time and energy on paperwork, and then net $24/month. https://www.hhs.texas.gov/sites/default/files/documents/snap-allotment-chart-25-4.pdf https://www.hhs.texas.gov/sites/default/files/documents/snap...
- fzeroracer 4mo ago
  Food stamps are definitely not 'very generous', speaking from personal historical experience. And food stamps can't pay for health insurance, rent or car bills.
- uberman 4mo ago
  What state are you in that leads you to belive food stamps are very generous? For example West Virginia (not the lowest) maxs out a family of 4 at about $500 a month.
- flowerthoughts 4mo ago
  Generally increasing "money supply" will increase the spending floor, which business will eventually use to increase profits, which we read as inflation. (Sorry, I mean they'll do price discovery to optimize corporate ownership benefits.) As long as the economic system can absorb it (and there are plenty of places with >20% inflation rate that survives,) you're right. But if it makes people feel they have "nothing to lose" on going against the rich, GPs scenario will kick in. Ray Dalio (and the Fourth Turning book) suggests this debt cycle is overstretched, and that we should _expect_ an uprising soon that resets it.

Ferret7446 4mo ago

That premise is kind of false though. Food stamps are very generous, much to the chagrin of the borderline tax contributors. I think we'll just see benefits slowly ramp up until most people are on benefits, with lots of consternation around government waste along the way.

zephen 4mo ago
> Food stamps are very generous Certainly not in Texas. A single person, who makes $910/month before taxes, rent, transportation, clothes, and insurance, could spend a lot of time and energy on paperwork, and then net $24/month. https://www.hhs.texas.gov/sites/default/files/documents/snap-allotment-chart-25-4.pdf https://www.hhs.texas.gov/sites/default/files/documents/snap...
fzeroracer 4mo ago
Food stamps are definitely not 'very generous', speaking from personal historical experience. And food stamps can't pay for health insurance, rent or car bills.
uberman 4mo ago
What state are you in that leads you to belive food stamps are very generous? For example West Virginia (not the lowest) maxs out a family of 4 at about $500 a month.
flowerthoughts 4mo ago
Generally increasing "money supply" will increase the spending floor, which business will eventually use to increase profits, which we read as inflation. (Sorry, I mean they'll do price discovery to optimize corporate ownership benefits.) As long as the economic system can absorb it (and there are plenty of places with >20% inflation rate that survives,) you're right. But if it makes people feel they have "nothing to lose" on going against the rich, GPs scenario will kick in. Ray Dalio (and the Fourth Turning book) suggests this debt cycle is overstretched, and that we should _expect_ an uprising soon that resets it.