Saturday, May 21, 2011

The economy in a nutshell

Specifically, too many *INVESTMENT* dollars chasing too few investment opportunities, thus driving up the price of commodities above what supply and demand would otherwise dictate. And there are too few investment opportunities because consumption has collapsed because consumers have experienced real deflation in wages (especially unemployed consumers, whose wages have utterly collapsed) and asset values (remember, the primary asset of the consumer class is their *home*, which has also collapsed in value).

We have a way of dealing with too many investment dollars and too few consumer dollars: Tax the investor class and redistribute the money to the consumer class via government purchases of goods and services since goods and services are provided by, err, the consumer class (otherwise known as the worker class), since the investor class wouldn't know how to stock a shelf or build a bridge if you tried to make them do it at gunpoint, they're basically parasites that just move money from point A to point B while sticking a bit of it to their fingers in the process.

Oh wait, I forget, we can't do that, even though it'd solve the problem, because it'd make Baby Jesus cry or somethin'. Alrighty, then!

- Badtux the Snarky Economics Penguin

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