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Open thread Feb. 7, 2017

Dan Crawford | February 7, 2017 5:47 am

Tags: open thread Comments (10) | Digg Facebook Twitter |
10 Comments
  • Lyle says:
    February 7, 2017 at 9:06 am

    An article on the fiduciary rule from Wonkblog at the washington post:https://www.washingtonpost.com/news/wonk/wp/2017/02/06/its-too-late-for-trump-to-stop-this-financial-rule/?utm_term=.210fbfe3589e

    It points out that a lot of retail investors have already voted with their feet by moving money to places that either provide no advice or are fiduciaries. It notes that Vanguard is up by 3 trillion since 2008 and Blackrock which runs 4 Trillion says it is a fiduciary for clients. People are not as stupid as the media make out. Note the comments about Morgan stanley accounts going fee based also. The article concludes that the government as usual in financial regulation is behind the curve. Of course the financial advisors complain that indexing is a communist plot.

  • Denis Drew says:
    February 7, 2017 at 10:29 am

    Some stuff I’m working on — while reading James Kwak’s book Economism: Bad Economics and the Rise of Inequality

    Nations are just like people — nations are just as free to decide to consume more and invest less or vice-versa. Do individuals always obsess on containing every possible dime of consumption so as to invest more later? Let’s look at what (who!) the Republicans think our nation should conserve less of to invest more later.

    Let’s see: less Medicaid, less food stamps, less education, less … . Wait a minute; looks like the lowest people on the economic totem pool, the poorest are expected to consume even less (through lower government spending) so that the rich can save more (through heavy tax cuts) and invest … and make all our futures brighter later. Mmm.

    Doesn’t seem to be working in Chicago at least where our quarter back Jay Cutler has a $126 million contract for 7 years — and 100,000 out of 200,000 minority, gang age males are in street gangs.

    Gang members (and of work blue collar, rust belt, former manufacturing counterparts) are not interested in the up-to-date kitchen or two mini-vans parked in the garage. They just want a decent life.

    A $10 an hour job is not a decent life — a $20 an hour job or jobs is. Most $10 an hour jobs could pay $20. The min wage was $11 when per capita income was half today’s. 45% of today’s workforce takes 10% of overall income — used to be 20%. 2/3 of workforce will always be non-college — only way to $20 is through collective bargaining with the ultimate consumer — able to not show up to work for the 55% if they don’t fork over — oh, uh, top 1% used to take 10% overall, not 20% — all of which means the money’s there — somewhere.

    Labor is sold sort of on reverse-margin. Meaning labor can raise the price of Walmart’s goods for instance only 7% while getting 100% raise for itself. The money’s there.

  • JackD says:
    February 8, 2017 at 8:54 pm

    The problem with high minimum wage rates is that the cost of robot manufacture and maintenance is likely to be cheaper.

    • run75441 says:
      February 9, 2017 at 7:44 am

      close enough

  • Denis Drew says:
    February 9, 2017 at 10:35 am

    I once pointed out that if a minimum wage raise brought in more money overall to minimum wage workers (even if to fewer) — that that would mean jobs lost to higher wage workers where the extra money used to be spent.

    BTW, first pay day we have to see where those newly directed pay dollars are spent. Maybe more minimum wage jobs than before.

    But, if minimum wage jobs are lost to automation those saved labor dollars are going to be spent somewhere else. Maybe spent on higher wage produced products — making more higher wage jobs.

    Come on fellas; when are you ever going to catch on. 🙂 < very large grin

  • Denis Drew says:
    February 9, 2017 at 10:50 am

    Seriously fellas and gals, if the 50% of our US workforce who take 12% of overall income wont show up for work unless they get 8% more, the other 49% will come up with it. Of course that requires re-establishing union density which can be done by making union busting (or muscling any species of collective bargaining, even two people) a felony on a state by state basis …

    … leaving Republicans no place to hide. Remember Trump won by trading places with Obama — making himself the hero of the blue collar.
    http://www.nytimes.com/2016/12/23/upshot/how-the-obama-coalition-crumbled-leaving-an-opening-for-trump.html

    The 54% can then get 10% back from the 1% (who now take 20% of overall, up from their former 10%). Ask Jimmy Hoffa how.

  • JackD says:
    February 9, 2017 at 12:14 pm

    Jimmy Hoffa? Whatever happened to him?

  • Denis Drew says:
    February 9, 2017 at 12:39 pm

    “Jimmy Hoffa? Whatever happened to him?”

    So glad you asked.
    “I Heard You Paint Houses”, Updated Edition: Frank “The Irishman” Sheeran & Closing the Case on Jimmy Hoffa
    Paperback – June 29, 2016
    by Charles Brandt

    By the hit man’s lawyer. The hitter and the mafia don who ordered the hit both died repentant Catholics.

    He was taken to a supposed meeting at a out of the way empty house and killed by a life long friend and often protector.

    The book claimed he hit Crazy Joe Gallo at Umberto’s Clam House too. The TV show History Detective showed a picture of him to a woman witness and she identified him.

  • JackD says:
    February 9, 2017 at 4:32 pm

    Has this been corroborated? Did they ever find the body? What would Jimmy tell us about how if we could ask him?

  • Denis Drew says:
    February 9, 2017 at 5:54 pm

    I’ll ask Jimmy for you at the seance tonight.

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