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by ziles88
4141 days ago
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You sound like a first year economics student, everythings still so black&white to you, just stop with the cliche 'market will bare' stuff at least. This theory means less and less these days. Many are realizing it's quite the opposite. In situations where the market wont bare the rich and powerful's offerings, the rich and powerful just go out of their way to force you to bare it... An example, oh well JimmySuperstore's market won't bare price hike, so they'll just make that money up by offshoring and avoiding taxes thereby sticking it to the market anyways.. Another good example, my apartment raises rent 20% in 4 years (illegally) and when caught and fined, just decided to demolition the entrie building so they could gentrify all the people who couldn't 'bare' their prices, and rebuild so they wouldn't be legally required to pay grandfathered rates to past tenants. There is no more such thing as market correction anymore, only displacement. Just a simple look at inflation adjusted year-of-year wages since the 1980's will show you recessions and market corrections disportionately effect the poor, and there is no hope or chance of regression, it's too late now, only a world financial collapse can adjust inequality at this point. Sorry for being so Keynesian, but it's the damn truth. |
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> JimmySuperstore's market won't bare price hike, so they'll just make that money up by offshoring and avoiding taxes thereby sticking it to the market anyways
In an open market, reorganizing operations and increasing tax efficiencies is exactly what Economics 101 would predict.
> my apartment raises rent 20% in 4 years (illegally) and when caught and fined, just decided to demolition the entrie building so they could gentrify all the people who couldn't 'bare' their prices, and rebuild so they wouldn't be legally required to pay grandfathered rates to past tenants.
Thanks for reminding me of the inefficiencies which non-free markets (rent control) cause. Literally everything in your story is explained by economics 101.
> Just a simple look at inflation adjusted year-of-year wages since the 1980's will show you recessions and market corrections disportionately effect the poor
Again, economics 101 is fully in accordance with that. Changes happen at the margins, so of course those who are marginally employed (ie. the poor) experience the majority of recessionary setbacks.
> a world financial collapse can adjust inequality at this point
A world financial collapse would indeed adjust inequality, but only in the sense that we'd all become poor. I hope (but increasingly doubt) that we can reach political compromises before then.
> Sorry for being so Keynesian, but it's the damn truth.
I'm a Keynesian as well... Keynes didn't reject economics, he just added to it.