S&P: The rich are too rich and it's not going to trickle down

[King]

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http://www.cnbc.com/id/101894638

[memphis]

Thanks, Captain Obvious! Though it's nice that this situation is now so dire that an institution like S&P can say it. The American economy is suffering from an enormous deficit of demand from consumers. Without consumer spending, it's hard to get an economy to do much of anything.

[AggregateDemand]

Unfortunately, redistribution does little to solve the problem. The middle class need to earn more, which is the moderate Republican argument for minimum wage increases (Romney).

How does the US increase wealth amongst the middle class without discouraging job creation and investment?

The US still hasn't solved this problem, and no one in Washington seems interested.

[King]

How does the US increase wealth amongst the middle class without discouraging job creation and investment?

By decreasing the wealth of the rich, which is discouraging job creation and investment.

The exponential increase in consumer demand giving $1 to the middle class and poor compared to $1 to a rich person who has all his needs met would more than make up any "discouraged job creation." 1000 poor people buy 1000 times as much crap as 1 rich person worth all of them.

The discouragement of investment idea is a fraudulent concept. A false dilemma. Any multimillionaire and up who thinks he's got a goldmine of a business proposal on his desk will take out credit lines and assemble partners.  Policies designed as an "encouragement of investment" is an encouragement of bad investments.

And if there's anything that discourages investment more, it's lack of consumer base which is what is happening right now.

[AggregateDemand]

By decreasing the wealth of the rich, which is discouraging job creation and investment.

True, sadly. Then during the Great Depression to Stagflation era, we decided to tax away middle class wealth, and turn it into middle class entitlements, like military, NASA, infrastructure, and education. That went to hell in short order. None of the money goes to the working middle class anymore, which was somewhat predictable from the outset.

[King]

I don't like the PC talk that middle class is the only one that deserves help. To me, the raising the poor would be a more beneficial endeavor at a lower cost and give the middle class itself a consumer base for small businesses they run to grow.