Bill Gates says the U.S. economy is very strong, and I agree with him

Discussion in 'Politics, Religion, Social Issues' started by Hieveryone, May 23, 2015.

  1. Hieveryone macrumors 68030

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    #1
    Bill Gates has said the middle class is better off now than before bc of advancements like the Internet. This notion that the middle class is struggling is false.

    I agree with him on this.

    Recently there's this 1% vs 99% attitude going around.

    Well, if you want to join the 1%, it won't happen by standing in the middle of the street with a sign.

    Should we provide healthcare, government support programs like food stamp, etc., yes IMO it's good to help people who can't help themselves.

    But seriously, there needs to be an attitude change. If you want to get rich, you have to DO something about it.

    http://www.cnn.com/videos/tv/2015/05/16/exp-gps-0517-gates-economy.cnn
     
  2. Alonso Quijano macrumors 6502

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    #2
    But, op, not everyone has the same advantages as everyone else.

    I recommend you take a look at the following link:

    http://thewireless.co.nz/articles/the-pencilsword-on-a-plate

    The "middle class" might have some benefits over previous generations but this doesn't mean that just anyone can become a millionaire and that disparities between the classes do not exist.
     
  3. Hieveryone thread starter macrumors 68030

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    #3
    Yeah that's true. I agree with that.

    Well then we need to give better access to education for everyone.

    That is the best way to help average people get rich.

    We need to make schools in bad areas better.

    EDIT: The last slide could've been the rich dude marrying to the waitress then she's rich too! Lol
     
  4. Bug-Creator macrumors 6502

    Bug-Creator

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    #4
    One could argue this from various angles.

    Wether Bill's definition of middle class is the same as everybody elses.

    Or of that class is as big as it was before.

    But I'll take this:

    "1%" is not about middle class or even the poor, it's about more and more wealth getting stuck at the top.
    The whole concept of money is based on it going round, if that stops you either have to make more and more money (QE with all it's effects) or you face an economic meltdown.

    Another issue with wealth concentrating is that it in the long run creates a new feudal system.

    Solutions:
    a) get the rich to spend their money (spend NOT invest !!)
    b) heavier taxation, either for possesion or at inheritance (note this has nothing to do with spending those taxes on social programs, it's all about reducing the money stuck at the top)
     
  5. Sydde macrumors 68020

    Sydde

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    #5
    "Rich" is kind of a relative term. By definition, most people cannot get rich, otherwise the term would be meaningless. And anyway, why would we want there to be more leeches and moochers?
     
  6. hulugu macrumors 68000

    hulugu

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    To some extent Bill Gates is right, the middle-class is finally gaining ground, however the median income is still around five percent lower than what was in January 2008.

    We should expect to see a gradual lifting of the median income of $64,000, however, the value of middle-class dollars isn't holding up against rising inflation measured by the CPI, such that for all intents and purposes, middle-class families are actually losing ground when compared to 2000.

    We've been fortunate of late to have low oil prices, but that's unlikely to hold out and we should see increasing prices for food (especially if droughts in the western US and Mexico continues) and other products.

    A few asked about the definition of middle-class and NPR put together a list of several cities that maintain pay rates above the median income.

    It's worth noting that San Jose and San Francisco, along with Seattle, have much higher than normal pay rates. So, from his perch in Redmond, it's hard to think that Gates' understanding of middle-class pay rates might be slightly distorted.
     
  7. HarryPot macrumors 6502a

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    Wouldn't investing their money be better than spending it?
    I mean, investing money = spending money to create more money.

    And how exactly can the government achieve for the rich to spend more?

    As for heavier taxation, I've never think of this as a good solution. It might work in small and rich countries, but in big countries it doesn't offer a good and lasting solution. I'm not saying the current system is the best, but just that I prefer it to other existing alternatives.
     
  8. senseless macrumors 68000

    senseless

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    #8
    The wealth distribution problem is an unfortunate side effect of the Federal Reserve's low rate policy. This should improve as rates are allowed to rise.
     
  9. Sydde macrumors 68020

    Sydde

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    Not really, because "investing", in modern lingo, means buying shares or derivatives on the market, which are just abstract valuations. You buy a stock, you are just giving some money to someone who previously bought the stock from someone else who, on ad finitum. In other words, "investing" means sticking your money into a cloud, where it just floats around with all the other cloud money, which gets reinvested in other 47th-hand financial instruments, in hopes that the share price will go up when you want to get your money back. Giving more money to rich people essentially means taking it out of working circulation.
     
  10. shinji macrumors 65816

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    #10
    Investing also includes bonds, which are a loan that a company could use to expand, hire people, etc.

    And as far as stocks go, companies do issue new shares, and the proceeds from that sale could be spent in a way that improves the economy. Not saying they always spend money that way, but there aren't a fixed number of shares outstanding for the life of the company.
     
  11. Bug-Creator macrumors 6502

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    #11
    Investing means "expecting a return" and as such it will result in the top 1% having even more money.
     
  12. HarryPot macrumors 6502a

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    #12
    I agree that there are best ways to invest money to create more jobs than just buying stock.

    But still, investing in stocks gives money to other companies so they can invest on growing their business. That money is not just sitting around.

    What is so wrong with the top 1% having more money?

    As long as they are creating jobs and moving money around, I see no problem. It would be great if all of them could be like Bill Gates and create charitable works, but even those greedy rich guys living in their mansions completely disconnected from real life, are better than the alternative of taxing rich people and big corporations even more.

    Higher taxes will just push companies to taker their business somewhere else or make new companies have a harder time growing and creating more jobs.
     
  13. Happybunny macrumors 68000

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    #13
    I think that all taxes in the USA should be cut by 75%, across the board.
     
  14. Eraserhead macrumors G4

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    #14
    And then how will the government be funded?
     
  15. Happybunny macrumors 68000

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    #15
    Well it's one way of getting defense cuts.:D

    Plus there are all those 2nd Amendment militia people to take up the slack.
     
  16. NT1440 macrumors G4

    NT1440

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    #16
    So you're saying we should invest in technology to convert guns into food right? :p
     
  17. Happybunny macrumors 68000

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    #17
    Yes guns for butter. :)
     
  18. Bug-Creator macrumors 6502

    Bug-Creator

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    #18
    So when did that old trickle-down mantra ever actually work ?

    And even those tiny tiny benefits that may be attributed to this kind of politics only work so long as you believe in limitless/neverending growth.
     
  19. NT1440 macrumors G4

    NT1440

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    #19
    The theory always worked perfectly. You can see that today.

    The issue is that it was falsely sold to people as a way for the "underclasses" (aka everyone but the rich) to benefit, when from its inception the model was always designed to and going to send the money up the chain. No rational person would rely on the benevolence of concentrated money to ever be used to raise the living conditions of the not-haves.
     
  20. Grey Beard macrumors 65816

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    #20
    Beat the swords into ploughshares.

    KGB:cool:
     
  21. hulugu macrumors 68000

    hulugu

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    #21
    I think you're asking the wrong question. The problem isn't that the top 1 percent has more money, but that their wealth has grown significantly while the wages of people in the bottom 25 percent have declined, and middle-class wages have stagnated.
     
  22. Dmunjal macrumors 65816

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    #22
    Nominal wages have gone up for all earners. But real wages have declined for the middle and lower classes. The reason is that inflation has outpaced wage growth. Why doesn't anyone ask why we have so much inflation? The Fed's goal is 2% annual inflation and for the largest expenses like housing, healthcare, and education it has gone up more than 2% annually. If wages grow less than that, those earners fall behind. Don't blame the 1% who make out like bandits with the Fed's policy because it helps their stock and real estate portfolios. Blame the Fed.
     
  23. FrankieTDouglas macrumors 65816

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    #23
    All that's missing in that cartoon is a cameo from Kirk Cameron
     
  24. Tomorrow macrumors 604

    Tomorrow

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    #24
    True, but those 99% protestors don't want to join the 1%, they want to destroy it.

    Go and read the manifestos of some of the more eloquently spoken ones - they aren't asking for more money, they're asking to cap the amount of wealth and income people can have - basically, "If I can't be rich, you shouldn't be able to get rich, either."
     
  25. cookies! macrumors 6502

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    #25
    Partially. The other part of that is a lack of wage growth that hasn't kept pace with equity growth. And there are many reasons, some more probable than others, for stagnant wages in America.
     

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