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economics

Inclusive economies always outperform and outlast plutocracies. That’s why investments in the middle class work, and tax breaks for the rich don’t. The oldest and most important conflict in human societies is the battle over the concentration of wealth and power. Those at the top will forever tell those at the bottom that our respective positions are righteous and good for all. Historically we called that divine right. Today we have trickle-down economics. Nick Hanauer

The fundamental law of capitalism is: When workers have more money, businesses have more customers. Which makes middle-class consumers—not rich businesspeople—the true job creators. A thriving middle class isn’t a consequence of growth—which is what the trickle-down advocates would tell you. A thriving middle class is the source of growth and prosperity in capitalist economies. Nick Hanauer

To found a great empire for the sole purpose of raising up a people of customers may at first sight appear a project fit only for a nation of shopkeepers. It is, however, a project altogether unfit for a nation of shopkeepers; but extremely fit for a nation whose government is influenced by shopkeepers. Adam Smith

…we need to stop talking about the economy in ways that make it seem like the weather. The economy is a result of the rules we create and the choices we make. The people who are struggling to make ends meet do so because we have built — through intentional choice — an economy that produces inadequate incomes for more than one-third of all Americans. So we need to have a real debate about what to do to build an economy that doesn’t produce such misery. Deepak Bhargava

We don’t think enough about the economic functions of social welfare policy, or about the relationship between the safety net and labor markets, and this hinders our ability to make sense of why some people fight so hard against programs that aid poor and low-income people: We mistake them for anti-welfare ideologues, and dismiss them as cruel or ignorant, but there’s an economic logic to their activism, one that’s revealed if we look at the relationship between welfare and work from both the employee’s and the employer’s perspective. Why Big Business Loves Desperate Workers

On the eve of the Great Recession, many conservative pundits and commentators — and quite a few economists — had a worldview that combined faith in free markets with disdain for government. Such people were briefly rocked back on their heels by the revelation that the “bubbleheads” who warned about housing were right, and the further revelation that unregulated financial markets are dangerously unstable. But they quickly rallied, declaring that the financial crisis was somehow the fault of liberals — and that the great danger now facing the economy came not from the crisis but from the efforts of policy makers to limit the damage. Conservative Delusions About Inflation

Indeed, an unwillingness to tax creates all kinds of evils. For starters, if a state can’t fund its core programs out of tax, it has to borrow. And when it borrows, it borrows from the rich. So instead of taxation — which weakens the fortunes and political influence of the wealthy — we get bonds, through which the wealthy are paid interest out of the funds extracted from those who lack the political clout to escape taxation. The wealthy get more wealthy, and exert more political pressure. Thomas Piketty’s Capital in the 21st Century

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