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[Nikov]

What did people do before social security and unemployment benefits, I wonder.

[ed boy]

Also, low income disparity is good for business, because it leads to greater consumption.

Not true. As your income increases, you will become more likely to save your money and less likely to spend it. What they want is vast masses of very poor people (for most companies).

[DJ]

Die in droves, become highwaymen, or revolt and get squashed by government troops 95% of the time. If you look at history during Industrial Revolution, you'll see it's chock-full of various uprisings by exploited workers.

Not true. As your income increases, you will become more likely to save your money and less likely to spend it. What they want is vast masses of very poor people (for most companies).

Is that why none of the Americans are in massive debt on their credit cards, unlike people from let's say Eastern Europe?

[ed boy]

In different countries, people have different propensities to save and spend. For example, for every hundred units of currency you give the average person in china, half will be saved. For every hundred units of currency you give someone in the UK, eight will be saved.

As for the debt, it mainly stems from people being short-sighted in their greed, and because we have a democracy, the politicians have to be greedy and short-sighted in their policies.

[DJ]

People save money for "black days". If they know that their country will assist them when these come, they'll be less inclined to save.

[ed boy]

Which is why in countries like the UK, where we give out billions each year in benefits of various sorts, people have such low propensities to save. In countries like china, where the government does not provide for people anywhere near as much, they save more.

[DJ]

Yeah, and that's why social programs are good for the economy.

[ed boy]

They are good to an extent. In order to fund these things, taxes must be raised, which hurts people. Additionally, government programs have no profit incentive, to you get rampant inefficiencies and excess costs.

[Phmcw]

Yes. I do know that's a tax, and that taxes keep vital government services running. Services I need to be able to pursue my own livelihood. I don't see the justification in taxing people who have done well for themselves in order to give things to people who have done poorly.

What a noble spirit. It's remarkable.
So sad it's so misplaced.
First you seems to think that poeple that are rich deserve it, in the sense that they have "done well". It's false on several level.

-Some job are well paid because they brass a lot of money. Business lawyers, traders, ... but they are not more useful then jobs such as  policeman, teachers, who, in the us at least, will have trouble paying for their kid's university. They are not harder then jobs such as mathematician, doctors, ... Money is not merit.

-A most used way to make money is to use money you don't have. By borowwing it, you can start a company, you can buy thing that you will rent, it's called the leverage effect. To use it, one condition. Being able to borrow money at low rate, which you can do if you're a corporation. Not so much if you're well You.

Doing well, is pursuing an objective and achieve it, not being constantly running behind money.
It's teach generations of pupils the knowledge gathered since the dawn oh human kind, not using the flaw of the human mind to make them work for you. And believe me, the last point is the sole reason of the existence of business school.

[smigenboger]

And LAWL @ money buying happiness.

As some comedian said, money doesn't buy happiness, but it can buy a Waverunner. Just try not smiling on one.

[fenrif]

First you seems to think that poeple that are rich deserve it, in the sense that they have "done well". It's false on several level.

You mean Paris Hilton isn't a good person? But she's so rich! My worldview is shattered...

[DJ]

Well if you really want happiness from material things, you should just buy a crapload of heroin. I guarantee you can't buy anything that will give you more happiness per dollar.

[ed boy]

Money is not merit.

I'm going to disagree with you here. If you go and get a job, the person who is employing you is not going to give you a wage that is greater than the value you bring to them. That would be losing them money. Similarly, if they make you an offer that is worth less than the value of what you can open them, you can always go get a job somewhere else. Someone's wage will always tend to the value of their output.

[DJ]

Similarly, if they make you an offer that is worth less than the value of what you can open them, you can always go get a job somewhere else.

In fantasy land, maybe.

[ed boy]

Similarly, if they make you an offer that is worth less than the value of what you can open them, you can always go get a job somewhere else.

In fantasy land, maybe.

Even if you don't get a job somewhere else, you can always negotiate your wage higher with the same employer.