Topic: Stock market, bubbles, US economy, distribution of wealth...Americans=no savings - page 2. (Read 351 times)

As I have read economic books on how to grow the economy and the people, I have not seen wages as a better way of distributing wealth nor if taxing the rich (because, in real definition, taxing is a mechanism against the rich) , has been a way of distributing wealth. Taxing goes Bach to the rich who is in the government to control    .

Distribution of wealth therefore is giving equal access to government awarded contracts, equal access to loans, equal access to education in high places without racist inclination and stigmatization, equal social connections etc.

In every society plus America, this is how Icthink wealth can be created. In America till this day, there are still poor people who rely to survive the covid-19 pandemic from government stimulus package.

I think that Americans cannot save for 2 main reasons, we are tricked into wanting things through marketing AND many items just happened to be market priced at the high-end limit of what it can cost...business probably spend a fortune figuring out the max the market will pay for a device/service.


for example: For some reason we need a new phone every 2 years and that new phone costs $1100

(But yet you can build our own computer for $2000 (or less) and it will be good for at least 8-10 years)


Housing is still way overpriced compared to incomes...unless there is a major restructuring (I can get in trouble for saying this) only the frugal will survive and be able to save and I say this because; if you go onto Twitter and see all the people begging for money right now...sure some of them are probably scammers, but still it's crazy how so many people have NO SAVINGS (or toilet paper)!

My personal opinion is that the distribution of wealth being the way it is, is more a factor of differences among people--their drives, personal attributes, and perhaps being born with a silver spoon in their mouth--and less a matter of what the stock market is doing.

OP, you're correct about the 10 year trend of boom and bust.  That's been a well-known fact for a long time, and it's said that investors have very short memories when it comes to bubbles.  I happen to agree with that, as I've seen a few in my lifetime so far.  You're also correct about money flowing into the stock market again, but IMO that could well be a dead cat bounce.  The coronavirus outbreak is going to have some serious effects on corporate earnings for at least the next few quarters, and I don't think it's really known how bad it's going to be.

My vote is for big pharma stocks, by the way.  They'll be doing well regardless of what the rest of the economy is doing.

Wealth distribution is undoubtedly a complicated problem and unsolvable problem because there are only limited resources to be shared with many people. If you want to be rational, you can only pick from working systems to date, i.e., free-market capitalism, state capitalism, centrally planned, mixed, etc., and I favor free-market capitalism over the others.

Since printing more money is also a means to dilute the idle cash, hoarding cash is guaranteed to be a loss. People need to spend it on growing the economy. Well, that's the idea behind it. However, instead of risking their money in productive activities, some people like to store their wealth by buying assets (including stocks). So please don't save your wealth in the form of fiat.

And about the higher wages, well, let's assume the economy is a pie. Wages will increase if:
- You have a bigger pie (assumed the proportion unchanged);
- You have a bigger slice (assumed the pie's size unchanged); and
- You get a smaller slice, but the pie is getting bigger, resulting in a net positive. It is only possible if the economy is growing more rapidly than population growth.

Artificially increasing salary can kill small businesses, and many will lose their jobs instead of getting more money. Anyway, in free-market capitalism, people don't have to wait for a (salary) raise; they can open their own businesses.

The money you see going to the stocks is not average Joe's money. As you said average people have no savings. That money belongs to the whales and they are trying to scam you like pretending that the bear market is over and the worst is happened, which I think is not true.

There are only a few big guys trying to scam each other and you (small guys) that's what stocks is about now.

I see airlines companiy stocks going up while there are no planes in the sky. How can that be possible? It is because it is a scam that's how.

America calling themselves as supernation of this world which means all the people in that country living a better life compared to third world countries, or am I wrong?

So Americans have to change their money spending habit if they want more savings.

Rich investor? Every investor knows that is good time to buy stocks which will give them huge profits in very quick time but only people have enough money will go for it but there are other options also available for them to invest now such as gold, real estate and especially cryptos.

Without getting political...it seems every 10 or so years we see another bubble burst, my question to you economic experts:


Do you think the current way wealth is distributed in the United States is one of the leading causes of this trend...and also do you think that if we had a "more fair" distribution of wealth (and I do not mean tax the rich and give it to the poor - I mean higher wages - I believe wages have been more or less stagnate, for most of Americans, for about 20 years)...[cont] a "more fair" distribution of wealth, the bubbles bursts would not be so extreme AND (in this case) Americans would have more money/savings for emergencies.

Currently money is pouring into the stock market again (greed and no alternatives), and we aren't even out of this mess yet, most likely because rich investors have no place else to put the money - with possible inflation around the corner, holding on to cash is risky (my take).


What do you think?