We’ve been talking about the k shaped economy for over a decade. How is this still news? Stocks in fortune 10 companies do not equally consumer spending power.
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Duckbilling2 on
May
Lmao
Touch
Venture capital
BRO
Reddit’s largest economics community. Serving as a central forum for users to read, discuss, and learn more about topics related to the economic discipline. We have written rules to support this aim and welcome those who want to learn and those who want to contribute. We aim to foster an environment where everybody feels safe and welcomed and where people feel encouraged to have healthy and productive discuss
Jozef667 on
“May” ? What do you mean “May” ?
They have been out of sync since before Outkast split up.
The last time they were in eyesight of each other Britney hadn’t gone GI Jane yet.
Vin Diesel and The Rock are more in sync with each other then the stock market and economy.
NSYNC are more in sync then this heap of shit.
Gamer_Grease on
Assets are overpriced. That’s all it really is. P/E is way up. Dividend yields are way down. Rent-to-price of real estate is down. The median first-time homebuyer is now 40. Before AI firms were sitting on mountains of cash because everything that they could have invested in was being offered at delusional valuations. Crypto was exploding in the legit money sphere because there was simply nowhere else to park money. There are many signs that all point to exactly the same problem.
The source of the problem sounds like “radical socialism,” but is really just a boring economic problem: the rich have too much money, and their marginal propensity to save means nearly all additional money they earn is invested, which is to say that it goes towards increasing the prices of assets even further.
This causes distortions in the market, which is why it’s a real problem. Companies cannot focus on anything but stock price. Real estate sits vacant because dropping the rent any farther would violate loan terms written on the basis of huge valuations. People can’t buy homes, and can’t move if they already own one. Apple can only make so many iPhones and can only price them so high, so at a certain point its stock is completely divorced from its business.
The answer, which is not politically popular, is redistribution. Invest the money that would go towards higher asset prices in productive, unsexy areas like infrastructure, or in addressing quality of life shortfalls like food access and education that prevent people from being productive workers and happy consumers.
4 Comments
We’ve been talking about the k shaped economy for over a decade. How is this still news? Stocks in fortune 10 companies do not equally consumer spending power.
Word limit word limit word linit
May
Lmao
Touch
Venture capital
BRO
Reddit’s largest economics community. Serving as a central forum for users to read, discuss, and learn more about topics related to the economic discipline. We have written rules to support this aim and welcome those who want to learn and those who want to contribute. We aim to foster an environment where everybody feels safe and welcomed and where people feel encouraged to have healthy and productive discuss
“May” ? What do you mean “May” ?
They have been out of sync since before Outkast split up.
The last time they were in eyesight of each other Britney hadn’t gone GI Jane yet.
Vin Diesel and The Rock are more in sync with each other then the stock market and economy.
NSYNC are more in sync then this heap of shit.
Assets are overpriced. That’s all it really is. P/E is way up. Dividend yields are way down. Rent-to-price of real estate is down. The median first-time homebuyer is now 40. Before AI firms were sitting on mountains of cash because everything that they could have invested in was being offered at delusional valuations. Crypto was exploding in the legit money sphere because there was simply nowhere else to park money. There are many signs that all point to exactly the same problem.
The source of the problem sounds like “radical socialism,” but is really just a boring economic problem: the rich have too much money, and their marginal propensity to save means nearly all additional money they earn is invested, which is to say that it goes towards increasing the prices of assets even further.
This causes distortions in the market, which is why it’s a real problem. Companies cannot focus on anything but stock price. Real estate sits vacant because dropping the rent any farther would violate loan terms written on the basis of huge valuations. People can’t buy homes, and can’t move if they already own one. Apple can only make so many iPhones and can only price them so high, so at a certain point its stock is completely divorced from its business.
The answer, which is not politically popular, is redistribution. Invest the money that would go towards higher asset prices in productive, unsexy areas like infrastructure, or in addressing quality of life shortfalls like food access and education that prevent people from being productive workers and happy consumers.