Once again research shows the poor are saddled with more constraints; a helping hand and less judgement would be more constructive.
Abnormal Returns listed the post as "Grit trumps talent"
I have said it several times in the last couple months. Here is the case laid out by The Atlantic. Unfortunately crony capitalism goes unchallenged in the US despite record levels of inequality. Food stamp programs and Obamacare defunded - these are the government expenditures the Tea Party protests (after being funded by billionaires).
Via The Economist.
Mish quotes Pettis
Favours corporate and personal tax reform as key to achieving stable long term economic growth in the US.
BCG article on how "to resolve the global debt overhang" ends with similar conclusions to those I expressed a few days ago
I spoke of this as a reply to Brent on what I perceive as ONE of the problems caused by QE a few days ago.
We are living in an era of overcapacity. There is a huge difference between no monetary policy, conventional monetary policy and QE. There are huge levels of structural unemployment. Corporations like Apple pay 1.9% tax on billions of dollars of profit. The elites, both corporations and individuals, hide their money in tax havens while enjoying the benefits of the economies from which they have made their fortunes. This elite take over has been politically engineered.
Jobs have been shipped to China and through no fault of their own the lower middle class has seen its opportunities and wages diminished. QE supports financial assets which are disproportionately held by the elites. While as you point out this cannot be proven, in the long run I think the poor would have been better off had the Fed allowed the American economy to fall into a
depression. The “New Deal” and all kinds of financial reforms came about because of the great depression. But creating artificial demand of 1/15th of the economy when the gains from the economy are engineered to disproportionately fall to a
few, masks the underlying systemic imbalances.
One of my best friends killed himself this weekend. I had known him for close to 25 years. He was well educated, wealthy, worked in IT and had run a successful blog on innovation for years. Most of all he was kind and a light in my life.
The suicide rate for white males in their 40s in the US has gone up 40% in the last decade. Glenn was part of that trend.
I will miss the bi-monthly conversations we had over the last two years. I will miss you Glenn.
Here is a post on depression from Noah Smith. (Noahpinion)
And as I make a few edits to this post a couple of days later, I feel stunned and at loss for how fragile life can be.