Lol, QE3? Try raising wages and giving something back to people to SPEND

[notting]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

Too funny.
My father runs a business (which he started well and truly after I was an adult) and he tells me lots of stuff.

Too funny is right.
Does he tell you all his stuff whilst changing your nappies?

 

[Mrmagoo]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

My list of kids who have never done anything, know everything AND are on my ignore list grows.

Wait, so because I have a father, and am an adult, that makes me a kid who has never done anything ? I certainly hope that is not the kind of logic economists are applying to their theories ! (although given the current load of nonsense they've developed it is probably not far off !)

 

[Mrmagoo]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

Too funny is right.
Does he tell you all his stuff whilst changing your nappies?

Not going to respond to your offensive, harassing remarks.

If you can find evidence of how low wage rates have improved economic conditions in the US I'd love to see it. If you can show evidence of a low wage worker being able to consume more due to price decreases I'd love to see where this has actually occurred and if possible some supporting data. As such a situation has never occurred, we must assume there is no evidence to support the idea that a low wage is a better wage in the USA, cheers

 

[tech/a]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

Too funny. If wages are sending you broke your business sucks and you should quit and join the Centrelink Que.

My father runs a business (which he started well and truly after I was an adult) and he tells me lots of stuff.

Too funny.

 

[Mrmagoo]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

Too funny.

I assumed a degree of bullying would result, so I tried to qualify the statement accordingly.

On second thought I should not have answered the question as it was an obvious attempt at a personal attack. In any case the US economy will not improve until such a time as wage rates are increased. I would have thought investors would be interested in getting to the truth of it, rather than depending on economic theory proven to be wrong.

I guess class warfare is simply too strong of an influencing force.

 

[Joules MM1]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

Too funny.

mm1 news vine

outrage on social networks as rumour runs rife that the grave of Jim Backus has been disturbed.....the family of the late celluloid star said no comment when asked about possible revenge attacks by zombies on posters baring the late stars animation name.....more on this later.....mumble mumble mumble

yeah, def saturday

 

[Mr Z]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

Everything you just said is nonsense.

Anyone paying you 90K is getting ripped off, you obviously have difficulty thinking.

 

[jancha]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

From my own personal experience I'd have to agree that when it comes to spending money the average wage earner is quicker to part with it. Example: Once upon a time there were two florist shops..one in a poor suburb and the other in a wealthy suburb.
In the later a BMW would pull up...The potential well dressed customer would come in ask the cost of each individual flower.... then ask how much to put it into an arrangement. You then had to explain the added cost of the vase the oasis backing ect. After explaining all of this and adding a further charge of $5 for labour....the customer would sometimes walk out because they thought the extra $5 was'nt warranted. (ave. cost back then was $15 for an arrangement)
Yet the in other shop a customer with workman clothes on would happily put $50 on the counter and ask for an arrangement to be sent to his mum. In and out in no time.
Not saying this is the case with everyone but for the majority... the rich are rich for a reason.
The shop in the poorer area had a much higher turnover.
When that $800 bonus was handed out from the Rudd goverment way back for stimulus...the ones with money and a house car ect. would put towards paying of their credit card or morgage but they did not go and spend it. Why? Confidence in the economy was'nt there and it still is'nt so I dont see the QE3 doing anything other than raising the POG. Ps Would never advise to be in the floral trade. Fast food business is the go. People have to eat.

 

[Mr Z]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

If you can find evidence of how low wage rates have improved economic conditions in the US I'd love to see it.

Not low wages... MARKET DETERMINED wages, by setting wages artificially high you are destroying a price signal the most important mechanism in the economy. The mere fact that what you do is a low wage job is telling you that the economy really needs you to be doing something else. Don't you understand that?

 

[Mr Z]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

to me, this is simple logic that is not taught enough, especially in schools.......(it must be saturday...oh, yeah)

You have me jiggered with that line of thought!

Tamarra!

 

[Joules MM1]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

You have me jiggered with that line of thought!

Tamarra!

yes, at school, at least in the western tradition, we are taught that the future is oft determined by an event or extraneous input, whereas, to have and take responsibility, have freedom of thought and artistic flair, come from understanding the nature of things as they, as we are, as we are driven, not as an invention or a subsequence of an event......one idea precludes and allows a person, or a society, to take actions on independent self-power rather than sitting around, or worse, frozen and become inept, awaiting what someone else might say or do.......oh dear......now my head hurts, too.....

it's food for thought......or a cheese burger...

torro torro, my son, let it all begin.......

 

[Mrmagoo]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

Not low wages... MARKET DETERMINED wages, by setting wages artificially high you are destroying a price signal the most important mechanism in the economy. The mere fact that what you do is a low wage job is telling you that the economy really needs you to be doing something else. Don't you understand that?

I understand perfectly that the area of a triangle is maximised if you consider the entire triangle. If you cut the triangle in half, then yes, the area is usually smaller than 2 halves. You know, it is possible that the market might not be a triangle. It could be a bean.

As I said, evidence please. Workers who had high minimum wages, doing better, in a better economy when those wages are taken away due to falling prices. You can't find evidence, for something which has never happened.

 

[Joules MM1]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

oh dear.......i sense a morfing by the semi-blind one to.....Mister Bean


i think sunday will see asprin.......more asprin

 

[Uncle Festivus]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

Not low wages... MARKET DETERMINED wages, by setting wages artificially high you are destroying a price signal the most important mechanism in the economy. The mere fact that what you do is a low wage job is telling you that the economy really needs you to be doing something else. Don't you understand that?

Society has already determined that if left to it's own devices, the market would have 2 classes - the rich & the poor? The problem now for our consumerist society is that the middle class is disappearing. It's the middle class that does the bulk of the heavy lifting - it consumes the most? Job security allows planning for the future ie home loans etc.

Overall, Americans have been steadily paring debt since the financial crisis. Household debt, including mortgages and home equity lines of credit, has declined for 16 straight quarters to $12.9 trillion in March, according to a separate Fed survey on consumer finances. That is down from $13.8 trillion in March 2008.

If we all are on contracts from day to day, which is what the market wants in a completely de-regulated labour force, then consumption would drop as people would not know if they even had a job next week. The flow on would be that the market would then suffer from lower sales?

Still, the job market has weakened substantially from the start of the year, which is keeping downward pressure on spending. In August, employers added just 96,000 jobs, down from 141,000 in July and well below the average 226,000 jobs a month in the January-March quarter.

It's in the markets own interest to have a healthy, adequatly rewarded, labour force. It's just that countries like China are undercutting everyones standard of living with their misguided (and unsustainable) policy of employment before profits....

There is a belief that lowering wages will promote more employment? Perhaps, but if we are all getting $2 per hour then who's going to spend & consume? Sure we'd all have jobs but we'd probably be living 10 to a room with the in-laws too?

Substitute the market for employers.....same thing?

 

[Mrmagoo]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

This guy, he drew a triangle on a page and gave it an axis ! He must be some sort of scientist ! Wow, economics is evidence based now !

 

[Mr Z]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

Society has already determined that if left to it's own devices, the market would have 2 classes - the rich & the poor?

Tripe.

 

[Mr Z]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

This guy, he drew a triangle on a page and gave it an axis ! He must be some sort of scientist ! Wow, economics is evidence based now !

You talk about economics as a whole like is a homogeneous science with uniform agreement of what is correct and what isn't. That is not the case and even given the sad state of the mainstream in this "science" they would all agree it is hopelessly compromised by political directives skewing the playing field, which ironically is what you are proposing more of.

 

[Mr Z]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

The problem now for our consumerist society is that the middle class is disappearing. It's the middle class that does the bulk of the heavy lifting - it consumes the most? Job security allows planning for the future ie home loans etc.

The income gap is directly attributable to monetary inflation by political directive, that is what is destroying the middle class. The massive irony here is that the middle class seem to be supporting the very actions that are undermining them. If they let the market be, they would be better off, sooner... but we will never find out just how well that works because no government has let the market be in well over 100 years.

The market is just you as a collective sorting out how best to use what we have to serve what you need. Why the fear? Why the need for some "know all" mummy government to direct all aspects of it.. you really think any government is that capable or indeed has that power?

 

[Mr Z]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

if my credit cards are full at 5% then giving me more credit cards at 1% wont necessarily encourage me to take more when my fears out-weigh my optomism........changing the number is a reflection of a changing emotion not the other way around


to me, this is simple logic that is not taught enough, especially in schools.......(it must be saturday...oh, yeah)

I really do think you have it backwards, the market action and our reaction to it can be explained by a small handful of concepts. Price as set by genuine supply and demand, both of good/services and money. The concept of marginal utility feeds back into demand and is the key concept in understanding the current lack of credit demand despite the low price. Your observations in no way justify putting social mood above all other things, on the macro level we are all products of our environment despite our valiant attempts to control as much of it as we can.

 

[Mrmagoo]

Re: Lol, QE 3? Try raising wages and giving something back to people to SPEND

You talk about economics as a whole like is a homogeneous science with uniform agreement of what is correct and what isn't. That is not the case and even given the sad state of the mainstream in this "science" they would all agree it is hopelessly compromised by political directives skewing the playing field, which ironically is what you are proposing more of.

Economics is not a science. Science involves experimentation.

I proposed a pretty logical null hypothesis : when you have more money - you have more money to spend.

I challenge you to find evidence to disprove this self defining law. You cannot find a single instance in a similar economy, where lowering wages has led to increased consumption.