Comments on: The middle-class meltdown http://blogs.reuters.com/great-debate/2011/09/08/the-middle-class-meltdown/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: More-Awake http://blogs.reuters.com/great-debate/2011/09/08/the-middle-class-meltdown/#comment-37342 Fri, 09 Sep 2011 20:05:57 +0000 http://blogs.reuters.com/great-debate/?p=10340#comment-37342 Thanks for sharing – Acetracy. I find that succinct analysis to be extremely insightful, and would explain many, many things. That is going to be my working hypothesis from now on and I will see how well it holds up.

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By: Acetracy http://blogs.reuters.com/great-debate/2011/09/08/the-middle-class-meltdown/#comment-37324 Fri, 09 Sep 2011 11:06:26 +0000 http://blogs.reuters.com/great-debate/?p=10340#comment-37324 Marx has very little to do with the fall of the US middle class and the exponential rise of the super rich in the past 30 years. It all stems from the US tax code which has steadily increased taxes on the middle class (yes, I do mean families earning up to $350,000) and the dramatic drop in tax rates on capital gains, derivatives, dividends, and investment real estate gains.

Capital formation, job creation and economic stability cannot exist along side speculation. When nearly 80% of NYSE daily transactions are done by quant programs whose holding periods are measured in minutes, when the brightest of MIT and Stanford program for prop trading desks rather than build industries, and when the lowest US federal tax rates (10%) are enjoyed by option traders – you have the destruction of an economy.

Long term investors are at a disadvantage in the US tax code. Furthermore, the super rich who are benefiting from this speculation are keeping more and more of their money off-shore, untaxed. Over 1/3 of the world’s wealth is held off-shore. Everyone knows that ultimately the problems of Greece and Italy is that their wealthy do not pay taxes. In those countries it is actually illegal, in the US it is legal.

If we had capital gains, derivative and dividend tax structure as we had before the Reagan tax changes, the US economy would see a much more stable outlook and a much fairer income distribution.

Marx has very, very little to do with today’s current crisis. It’s all in the tax code.

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By: Dafydd http://blogs.reuters.com/great-debate/2011/09/08/the-middle-class-meltdown/#comment-37322 Fri, 09 Sep 2011 09:35:23 +0000 http://blogs.reuters.com/great-debate/?p=10340#comment-37322 Anyone who ever bothered to read Marx would notice his criticisms of capitalism are spot on. That is the basis of his appeal. That is why much of Europe defused it with social democracy.

Marx’s prescription for improvement was pretty useless. Interestingly it was pretty good for rapid industrial development from a feudal society.

I am mystified that so many people are only just beginning to notice this, after all, Bismarck said ‘A man who is not a socialist at the age of 20 has no heart. A man who remains a socialist at age 30 has no brain.”

This thinking about Marx is hardly new.

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By: zotdoc http://blogs.reuters.com/great-debate/2011/09/08/the-middle-class-meltdown/#comment-37301 Thu, 08 Sep 2011 21:12:45 +0000 http://blogs.reuters.com/great-debate/?p=10340#comment-37301 Nice article. I feel like the middle class is being squeezed from all sides. Politicians say 250,000.00 is rich, but I certainly don’t feel so rich that I don’t have to scrimp & save like someone making 75,000.00. The ceo of United Healthcare just a few years ago recieved as a bonus $2 Billion in back dated stock options, on top of a 100,000,000.00 salary. I wonder what he paid in taxes?

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