Can we all agree on this major economic issue?

Perhaps the most important economic issue facing this country is the exorbitant cost of living. While homes used to cost around 3x annual household income, today they cost more than 4x annual income. That's a tremendous rise, when really things should be going down in relative price over time.

As a result, today's young people are delaying family formation and embracing radical political ideologies because this economy is failing them.

Concurrently, bank assets have risen massively, from 50% of GDP to 85% today. As banks have grown richer, working Americans have become poorer. And are they passing those riches onto us? No. Credit card rates are still high, and we earn very little on savings. It's clear that the financial sector has come to dominate our economy, and what have they produced for us other than massive bubbles and worthless speculation?

Is it time to do something radical about banks? My suggestion would be to raise taxes on interest income to combat this concern. Finance has become a leech on the productive industries of our economy, and our economy has nearly bled dry.



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This also correlates with the stagnant median family income that we've seen over the past roughly 20 years.



Banking is sapping our resources, and we're really getting nothing out of it.

phattonez said:

This also correlates with the stagnant median family income that we've seen over the past roughly 20 years.

Banking is sapping our resources, and we're really getting nothing out of it.

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What meaningful changes and efforts do you think the present administration is effecting in order to improve the situation?

phattonez said:

Perhaps the most important economic issue facing this country is the exorbitant cost of living. While homes used to cost around 3x annual household income, today they cost more than 4x annual income. That's a tremendous rise, when really things should be going down in relative price over time.

As a result, today's young people are delaying family formation and embracing radical political ideologies because this economy is failing them.

Concurrently, bank assets have risen massively, from 50% of GDP to 85% today. As banks have grown richer, working Americans have become poorer. And are they passing those riches onto us? No. Credit card rates are still high, and we earn very little on savings. It's clear that the financial sector has come to dominate our economy, and what have they produced for us other than massive bubbles and worthless speculation?

Is it time to do something radical about banks? My suggestion would be to raise taxes on interest income to combat this concern. Finance has become a leech on the productive industries of our economy, and our economy has nearly bled dry.

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I don't disagree even this would hurt me personally. But trump and the GOP will never go for it

The banks were made flush by the stimulus but don't lend much because interest rates are so low. As a result, they are sitting on hordes of cash.

vegas giants said:

I don't disagree even this would hurt me personally. But trump and the GOP will never go for it

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And Democrats would? Let's not pretend like both parties aren't utterly complicit.

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veritas1 said:

The banks were made flush by the stimulus but don't lend much because interest rates are so low. As a result, they are sitting on hordes of cash.

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This started in 2000, well before the stimulus.

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phattonez said:

This started in 2000, well before the stimulus.

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Perhaps but the big uptick to surpass housing prices happened right around the stimulus.

phattonez said:

And Democrats would? Let's not pretend like both parties aren't utterly complicit.

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I don't really disagree with that either....but the GOP always fights for the capital gains tax

vegas giants said:

I don't really disagree with that either....but the GOP always fights for the capital gains tax

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And the Democrats were totally fine with bailing out the banks. They're both in the tank for banks.

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Cardinal said:

What meaningful changes and efforts do you think the present administration is effecting in order to improve the situation?

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When did I say they were doing anything about this? I don't think they are.

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veritas1 said:

Perhaps but the big uptick to surpass housing prices happened right around the stimulus.

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That did make it worse, but this problem precedes that. I'd argue much of this is from Greenspan.

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We've not had real growth in this country for decades, just a shifting of wealth to the rich. This economy is failing.



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