Tuesday, August 26, 2014

A lot of interesting ideas in this!

I like the ideas that economic growth in a capitalistic economy comes from solving people's problems. It is innovations in technology and enterprises that commercialize those innovations that provide new solutions to new problems and better solutions to old problems. By assuring opportunities for education and upward mobility for all, we maximize the rate of production of people who can and do solve problems, and thus we maximize the wellbeing of people, and we see the economy grow.

Trickle down doesn't work. The plutocrats don't innovate, and their acquisitiveness tends to be at the expense of the majority, tamping down upward mobility for the majority, and thus reducing growth. If the majority have less money, not only will they buy less, but the total purchasing in the economy will go down. Then employment will go down and society is in a viscous cycle.

Government policies can intervene and help, or can intervene and contribute to the problem. In a democracy the choice should be ours.

If this man lived in a country with upward mobility, he would probably be rich!

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