Comments on: Counterparties: A recovery for the 7% http://blogs.reuters.com/felix-salmon/2013/04/24/counterparties-a-recovery-for-the-7/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Christofurio http://blogs.reuters.com/felix-salmon/2013/04/24/counterparties-a-recovery-for-the-7/comment-page-1/#comment-46777 Thu, 25 Apr 2013 16:05:21 +0000 http://blogs.reuters.com/felix-salmon/?p=21471#comment-46777 I hope some of your readers will follow the link to that Noah Smith piece on Krugman. It isn’t as pro-Krugman as your tease would indicate.

Here is a quick spoiler: Smith says that yes, Krugman has had a good prediction record of late, measured against both the overly optimistic (J. Paulson) and against the overly pessimistic (N. Ferguson). And Krugman himself surely believes that his prediction success validates his Keynesian view of the world.

BUT, Smith suggests, maybe there is another explanation. After all, Smith himself is not a Keynesian (he declares himself “agnostic” on key Keynesian matters), but his expectations have been in line with PK’s.

Perhaps those who have predicted successfully have simply presumed that the US and Europe [for whatever macroeconomic reasons] are following the course laid out for them by Japan since the early 1990s. The presumption that “we are like japan” accounts for the right predictions nicely without a lot of baggage.

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By: ThoseWhoServe http://blogs.reuters.com/felix-salmon/2013/04/24/counterparties-a-recovery-for-the-7/comment-page-1/#comment-46764 Thu, 25 Apr 2013 02:24:00 +0000 http://blogs.reuters.com/felix-salmon/?p=21471#comment-46764 I am retired. I have been hearing a never-ending drumbeat from the Republican Party that seniors are bleeding the country dry and leaving their grandchildren to a life of poverty and destitution.

I paid into Social Security via payroll taxes for over fifty years, into Medicare via payroll taxes for over forty years, paid state income taxes for more than thirty-five years until a move to Florida in 1993, and have continuously paid local property taxes since 1963. I did not complain about paying taxes because I consider taxes (federal, state, and local, as part of the price of belonging to a civilized and educated community and nation.

Apparently, the Republican Party is grateful for my taxes paid; but now willing to complete their share of what most people thought was compact to pay while you are earning and capable and to receive benefits when you retire. Of course, the Republican Party is not alone; big business agrees fully and has aggressively pursued and successfully executed options to eliminate retirement pensions, health coverage, and jobs.

The Pew Research study released on 4/23/13 stated “During the first two years of the nation’s economic recovery, the mean net worth of households in the upper 7% of the wealth distribution rose by an estimated 28%, while the mean net worth of households in the lower 93% dropped by 4%, according to a Pew Research Center analysis of newly released Census Bureau data.

During the first two years of the nation’s economic recovery, the mean net worth of households in the upper 7% of the wealth distribution rose by an estimated 28%, while the mean net worth of households in the lower 93% dropped by 4%, according to a Pew Research Center analysis of newly released Census Bureau data.”
Not only did their share of wealth increase, the same study reported their aggregate share of the nation’s overall household wealth pie rose to 63% in 2011, up from 56% in 2009.
I would be very surprised if an analysis of the 2011 -2013 period did not show similar increases in individual wealth accumulation and the aggregate share of the nation’s overall household wealth.
Could you explain to me again how the President is making life difficult for the top 1%, much less the top 7%, when their share of the nation’s wealth continues to show an ever-increasing share to those at the top while the individual share and aggregate share held by the working, middle class, and retirees in the lower 93% continue the decline that has been underway since the 1980s?

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