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View Diary: Joseph Stiglitz' Latest Must-Read: "Inequality Is Holding Back The Recovery" (113 comments)

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  •  The answers are really quite simple to conceive, (3+ / 0-)

    but not so easy to implement because of the corrupting influence of those doing the bidding of the 1%.

    The government takes a certain percentage of money from those making the most in the economic environment the country 'in whole' has created. Then the government redistributes the money in the form of direct salaries to employees, and via government contracts. Contacts that serve as investment in programs to better the society and maintain and expand on the infrastructure to support it.

    That keeps the economic engine stoked. If it's a higher percentage, then the engine runs full steam. If it's a lower percentage then it meanders and stumbles along. If it's too low, the engine struggles to go move at all.

    Making it seem more complex is just a way to make it seem complicated to the average person, thus protecting whatever rigging of the system the 1% has managed to instill.

    I've always maintained that a well funded government is the foundation of a strong democracy. And when people, especially those in the first class seats of the economic train ride, refuse to help fund it, the country -- in this case, our country -- suffers. At which point the patriotism of the wealthiest among us has to be brought into question.

    And to put it bluntly; bad economies are no time for bad patriots.

    Physics is bulls**t. Don't let them fool you. Fire IS magic.

    by Pescadero Bill on Sun Jan 20, 2013 at 12:13:10 PM PST

    [ Parent ]

    •  I think it's the other way around re: funding. (1+ / 0-)
      Recommended by:
      elwior

      The gov funds the private sector, and in return the private sector, through bribes, insures this remain so.

      The US uses a fiat currency, money created out of thin air.

      I'm not sure how the government stores up infinity.

      That vault would be really, really big.  If we built it, it would probably solve the unemployment problem.

      The money flow begins with  the government being the issuer of our national currency.  So, for instance, when the gov announces that it's going to institute policies to send some of our national currency overseas to buy labor and resources, it's creating a money flow to the private actors who can benefit.

      And, when it then claims that exchanging accounting entries for foreign labor and resources does NOT create more public wealth through savings in labor and resources, then it's socializing private expenses and privatizing private gains.

      Then there's the Fed issuing unlimited amounts of free reserves to the banks, then paying them interest on those reserves - .25%.

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