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Wealth and Income Appendix

JazzBumpa | January 27, 2012 4:47 pm

 In this post, earlier today, I forgot to link to this article over at Naked Capitalism.

The salient point is, that specifically for investors, spending is related exclusively to income, never to wealth.

It goes on to posit that QE and monetary policy are killing demand. 

As Steve would say, “Go read it.”

Tags: income, jazzbumpa, Wealth Comments (9) | Digg Facebook Twitter |
9 Comments
  • Troy says:
    January 27, 2012 at 6:38 pm

    For someone to receive interest, somebody else has to pay it.

    What is “killing demand” is losing the $1T+/yr in free bubble money injections the middle class was receiving, 2004-2007.

    That and the continual $500B+/yr trade deficit that is ripping money out the paycheck economy.

    All the intervention since 2008 has been palliative responses in reaction to these major issues (arguably the bubble economy money fountain was also a respone to the trade deficit issue that got rolling in the 1990s).

  • jazzbumpa says:
    January 27, 2012 at 6:53 pm

    Troy –

    Are you arguing for a wealth effect, or do you suppose people saw that bubble money as income?

    JzB

  • Troy says:
    January 27, 2012 at 7:16 pm

    the latter, of course.

    And I don’t suppose it, I know it.

  • Troy says:
    January 27, 2012 at 7:17 pm

    I don’t suppose the latter, I know it. And I have the pretty St Louis FRED graphs to prove it. . .

  • Troy says:
    January 27, 2012 at 7:19 pm

    Also,  I think it was someone here to put me onto Steve Keen not too long ago. Big thanks for that, he’s got my thesis : )

  • jazzbumpa says:
    January 27, 2012 at 7:43 pm

    Troy –

    I loves me some FRED graphs.  Which ones do you have in mind?

    JzB

  • Troy says:
    January 27, 2012 at 7:58 pm

    this one tells the main story:

    http://research.stlouisfed.org/fred2/graph/?g=4Bv

  • Troy says:
    January 27, 2012 at 7:59 pm

    this one tells the main story:  
     
    http://research.stlouisfed.org/fred2/graph/?g=4Bw

  • Troy says:
    January 27, 2012 at 8:00 pm

    this one tells the main story:    

    http://research.stlouisfed.org/fred2/graph/?g=4Bw

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