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AP survey: US income gap is holding back economy
Associated Press ^ | Dec. 17, 2013 5:13 PM EST | Christopher S. Rugaber

Posted on 12/18/2013 2:20:18 AM PST by Olog-hai

The growing gap between the richest Americans and everyone else isn’t bad just for individuals.

It’s hurting the U.S. economy.

So says a majority of more than three dozen economists surveyed last week by The Associated Press. Their concerns tap into a debate that’s intensified as middle-class pay has stagnated while wealthier households have thrived.

A key source of the economists’ concern: Higher pay and outsize stock market gains are flowing mainly to affluent Americans. Yet these households spend less of their money than do low- and middle-income consumers who make up most of the population but whose pay is barely rising. …

(Excerpt) Read more at bigstory.ap.org ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: christophersrugaber; memebuilding; partisanmediashill; partisanmediashills
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1 posted on 12/18/2013 2:20:18 AM PST by Olog-hai
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To: Olog-hai

These would be communist economists that worship keynes.


2 posted on 12/18/2013 2:22:20 AM PST by LibLieSlayer (FROM MY COLD, DEAD HANDS! BETTER DEAD THAN RED!)
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To: Olog-hai
America is doing OK ... AmericanS ... not so much.
3 posted on 12/18/2013 2:22:28 AM PST by knarf (I say things that are true .. I have no proof .. but they're true.)
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To: Olog-hai

I wonder if the shrinking job market for the middle class and increasing tax and fees burdening the middle class have anything to do with buying power.


4 posted on 12/18/2013 2:23:46 AM PST by Fzob (Jesus + anything = nothing, Jesus + nothing = everything)
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To: Olog-hai

I am astounded at the convoluted thinking of these economists. I’m wondering just exactly where these cretins work. Is some actual company that produces goods and services paying them. Or, are they academics who just teach what they can’t understand.


5 posted on 12/18/2013 2:24:13 AM PST by Gaffer
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To: Fzob

Approving Keystone would provide unemployed workers with good jobs. It would reduce income inequality. But Obama won’t approve it for ideological reasons.


6 posted on 12/18/2013 2:30:55 AM PST by Richard from IL
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To: Olog-hai

Some people make more than do other people. The economy is bad. The two data are not related in any sort of cause-effect configuration.If the incomes were to be equalized by some government action the economy would decline to bare subsistence for all.


7 posted on 12/18/2013 2:40:16 AM PST by arthurus (Read Hazlitt's Economics In One Lesson ONLINEhttp://steshaw.org/economics-in-one-lesson/)
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To: Gaffer

They work essentially for the government and are paid to espouse concepts that indicate government benevolence, wisdom, and skill along with the inherent stupidity and mindless greed of those not in the upper reaches of the government.


8 posted on 12/18/2013 2:43:01 AM PST by arthurus (Read Hazlitt's Economics In One Lesson ONLINEhttp://steshaw.org/economics-in-one-lesson/)
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To: Gaffer

This is sheer Obama propoganda. These “economists” (leftist central planners) see Obama’s policies have not worked, (stimulus, etc.) so they attribute cause to his own effect. Proof they are Obamabots? Later in the article:

Among the economists’ other views:

— The Obama administration’s health care law will make little or no difference to the job market.


9 posted on 12/18/2013 2:52:46 AM PST by Rennes Templar (If you like your disease, you can keep it.)
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To: Olog-hai

Global warming scientists moonlighting as economists?


10 posted on 12/18/2013 2:53:38 AM PST by pax_et_bonum (Never Forget the Seals of Extortion 17 - and God Bless Americaa)
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To: Olog-hai
It is ZERO and his policies holding back the economy.
Replace ZERO, with a fiscal conservative, and watch the economy explode. . .
11 posted on 12/18/2013 2:56:48 AM PST by DeaconRed (When the free stuff runs out & it will. All hell will break loose.)
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To: Olog-hai

And do Economist know it is Democrat policies that have increased the “gap between the richest Americans and everyone else” the most?


12 posted on 12/18/2013 3:09:56 AM PST by Son House (Democrats want you to use 'Great Recession' instead of 'Jobless Recovery', recession ended June 2009)
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To: Rennes Templar

It’s like Nancy Pelosi saying that welfare is good for the economy. Government giving money to leeches is good for the economy....


13 posted on 12/18/2013 3:13:11 AM PST by Gaffer
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To: Richard from IL

Why does Obama have to approve it? Just go ahead and build it and let Odumbo try to stop them.

FUBO


14 posted on 12/18/2013 3:19:09 AM PST by ilovesarah2012
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To: Gaffer

“Is some actual company that produces goods and services paying them”

If a private company is employing an economist he’s working in Shipping/Receiving. Only universities and governments employee economists. There might be one working in a “think tank” but if so, he’s fetching coffee.


15 posted on 12/18/2013 3:26:39 AM PST by Gen.Blather
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To: Gen.Blather
If a private company is employing an economist he’s working in Shipping/Receiving

Now, that's funny! :)

16 posted on 12/18/2013 3:31:01 AM PST by Gaffer
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To: Rennes Templar

“-The Obama (mis)administation’s health care law will make little or no difference to the job market.”

It will devastate 1/6 of our economy. Thousands will suffer. Millions will die prematurely.

Funeral directors are smiling all over America.


17 posted on 12/18/2013 3:31:59 AM PST by urbanpovertylawcenter (the law and poverty collide in an urban setting and sparks fly)
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To: Olog-hai

Wonder how many of these so-called experts included the fact that inflation hurts the wealthy less than the non-wealthy? And we all know who has the sole key to causing inflation.


18 posted on 12/18/2013 3:32:50 AM PST by RWB Patriot ("My ability is a value that must be earned and I don't recognize anyone's need as a claim on me.")
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To: Olog-hai

The gap is between what our GDP would be under a free market system and what it is under the current fascism.


19 posted on 12/18/2013 3:39:15 AM PST by SC_Pete
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To: Olog-hai

The stupid just in the posted excerpt is off the scale.


20 posted on 12/18/2013 3:46:42 AM PST by listenhillary (Courts, law enforcement, roads and national defense should be the extent of government)
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To: LibLieSlayer
No kidding. What kind of malarkey is that?

I had to read the headline a few times to be sure I was reading it right.

21 posted on 12/18/2013 3:47:18 AM PST by Bloody Sam Roberts ("It does not take a majority to prevail, but rather an irate, tireless minority...")
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To: Olog-hai
a majority of more than three dozen economists surveyed

Three dozen? Sounds like they polled the professors and graduate students at some school, somewhere.

(Yes, if congress just raised the minimum wage to $100, everyone would be rich!)

They won't talk about the "education gap" between rich and poor, and how dysfunctional, unionized urban school systems keep the poor, poor.

22 posted on 12/18/2013 3:47:41 AM PST by Sooth2222 ("Suppose you were an idiot. And suppose you were a member of congress. But I repeat myself." M.Twain)
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To: Olog-hai

These are the dull economists who think there is only a finite amount of wealth and every dollar Bill Gates has is a dollar I don’t have. Jealousy and envy is what drives the left.


23 posted on 12/18/2013 3:49:33 AM PST by muir_redwoods (When I first read it, " Atlas Shrugged" was fiction)
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To: Olog-hai

My income is unequal to Warren Buffet’s

gimme some


24 posted on 12/18/2013 3:49:56 AM PST by silverleaf (Age takes a toll: Please have exact change)
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To: LibLieSlayer

The technical term for what these economists are doing is “mental masturbation”.

The only possible effective way to address income inequality is to have the Fed stop interfering with interest rates. With higher interest rates there would be an incentive to save and create capital that can be used productively.

Unfortunately this isn’t possible because the slightest increase in interest rates would make servicing the massive government debt impossible. Thus money continues to be printed, inflating stock market and real estate values and creating an illusion of a viable economy.

Remember - the solution to economic distortions caused by government intervention is always more government intervention!


25 posted on 12/18/2013 3:50:50 AM PST by Junk Silver
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To: Gen.Blather

Financial institutions like banks and insurance companies employ lots of economists.


26 posted on 12/18/2013 3:51:54 AM PST by muir_redwoods (When I first read it, " Atlas Shrugged" was fiction)
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To: Olog-hai

Look for earned stock income to be added to the earned income wealth redistribution program to share the gains with those that own no stocks. It’s only fair. The poor would have owned stocks, if they had the money to invest. It’s not fair that stock investors get all of the gains.

(sarcasm off)


27 posted on 12/18/2013 3:52:32 AM PST by listenhillary (Courts, law enforcement, roads and national defense should be the extent of government)
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To: Olog-hai
Sending home invaders and stopping the flood of both legal and illegal foreign labor would close that gap, at least somewhat.

Ya' think maybe the elite, whatever political role they play like being the elite and plan to keep it that way?

28 posted on 12/18/2013 3:52:35 AM PST by grania
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To: All

here we go again..


29 posted on 12/18/2013 3:53:51 AM PST by newnhdad (Our new motto: USA, it was fun while it lasted.)
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To: Olog-hai
Methinks there is a confusion of variables and measurement at work here. One would need to see the questions asked of the economists, as opposed to the spin imparted by reporter. The economy is indeed held back by the large numbers of people stuck at the bottom. We have seen massive increases in long term unemployment and disability, as well as underemployment. But this has nothing to do with inequality per se.

Growth in upper income brackets is not the cause of the underclass being stuck on zero, and income redistribution from the top quintile to the lower two quintiles will not remedy the situation. In fact, redistribution will probably exacerbate the problem in the long run by making people more comfortable with long term dependency.

The issue is how to get the welfare classes working, and moving upward. This would indeed be good for the economy, and it would indeed reduce income inequality. The left has only one play in its playbook, but increasing welfare benefits is not the answer.

30 posted on 12/18/2013 3:55:23 AM PST by sphinx
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To: LibLieSlayer

Yep—60% of them claim Obamacare will have no effect on the economy. None of them, at least, could bring themselves to claim it would be a boost to the economy. The AP of course found the 40% who admitted to the harm to be marginal, of course.


31 posted on 12/18/2013 3:57:01 AM PST by 9YearLurker
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To: muir_redwoods

“Financial institutions like banks and insurance companies employ lots of economists.”

If they do, they probably don’t employee communists like the ones quoted. (Companies that need accurate weather predictions do not use the National Weather Service. Governments don’t know sh*t about how things really work, whether it’s weather prediction, website building or economics.)


32 posted on 12/18/2013 4:00:07 AM PST by Gen.Blather
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To: Olog-hai

Crony Capitalism


33 posted on 12/18/2013 4:02:51 AM PST by cp124 (Government is value subtracted.)
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To: 9YearLurker

First, if having a degree in economics somehow imparted someone with special knowledge that allowed them to determine the best course for making the economy thrive - there would be a high demand for economists at all levels of business. However, most of the economists we know are theoreticians who work at universities, or go from a university environment to government. There’s a reason there aren’t a ton of jobs for economists in the private sector. The reason? They don’t appear to be very useful in helping businesses thrive.

Regarding income distribution, we need to be concentrating on how we can make more pies, not how we are going to slice up the pie we have. More pies, bigger slices for everyone.


34 posted on 12/18/2013 4:11:08 AM PST by pieceofthepuzzle
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To: Bloody Sam Roberts

Indeed!


35 posted on 12/18/2013 4:12:21 AM PST by LibLieSlayer (FROM MY COLD, DEAD HANDS! BETTER DEAD THAN RED!)
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To: Junk Silver

Yes and all of these communist economists hate Capitalism and are flaming socialist keynesian drones. They worship big intrusive government and wealth redistribution. Those that are free market believers are NEVER quoted.


36 posted on 12/18/2013 4:14:35 AM PST by LibLieSlayer (FROM MY COLD, DEAD HANDS! BETTER DEAD THAN RED!)
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To: Olog-hai
Yet these households spend less of their money than do low- and middle-income consumers

No, the government spends half the rich people's income, much of it sacrificed on the alter of sloth never to be seen from again. Without the small percentage of high income earners the government would go bankrupt in 3 days.

37 posted on 12/18/2013 4:14:37 AM PST by Reeses
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To: 9YearLurker

But of course. They also polled only those that they knew would answer “correctly”.


38 posted on 12/18/2013 4:15:31 AM PST by LibLieSlayer (FROM MY COLD, DEAD HANDS! BETTER DEAD THAN RED!)
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To: LibLieSlayer
These would be communist economists that worship keynes.

Not necessarily. The wealthy are reaping the benefits of QE, while the middle class suffer inflation.

39 posted on 12/18/2013 4:18:04 AM PST by D Rider
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To: Fzob

Bingo.

Obama is screwing the Middle Class every day, but remember unemployment insurance will grow our economy.


40 posted on 12/18/2013 4:22:22 AM PST by Venturer (Half Staff the Flag of the US for Terrorists.)
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To: pieceofthepuzzle

Those “economists” you speak of are educated but ignorant of reality. One of my degrees is in economics. It is all about theory, but reality is the wild card in actual economics. The economists who are opining here have no experience in reality. They live in an alternate universe.


41 posted on 12/18/2013 4:23:48 AM PST by Texas resident
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To: Olog-hai

Do economists grow or create jobs? I don’t think so.

What’s hurting the economy is the massive unemployment. Do they want to address that?


42 posted on 12/18/2013 4:25:59 AM PST by Sir Napsalot (Pravda + Useful Idiots = CCCP; JournOList + Useful Idiots = DopeyChangey!)
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To: Olog-hai
US income ambition gap is holding back economy.

There, fixed it.

43 posted on 12/18/2013 4:28:03 AM PST by dfwgator
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To: D Rider
Negative employment policies of the Democrats are stifling job creation and growth. Stimulus money was wasted on solar firms that eventually went belly-up, while ObamaCare has forced small businesses to cast off workers whose healthcare benefits outweigh their continued employment. Then they can only get part time jobs that rob the middle class of wealth and employer payed healthcare.
44 posted on 12/18/2013 4:28:25 AM PST by broken_arrow1 (I regret that I have but one life to give for my country - Nathan Hale "Patriot")
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To: broken_arrow1
Negative employment policies of the Democrats are stifling job creation and growth...

Exactly. In a healthy free market economy the wealth gap is not as great as it is now. The wealth gap was also large during the depression.

45 posted on 12/18/2013 4:33:53 AM PST by D Rider
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To: Olog-hai
I had a different theory, but it's just as valid as theirs...

@#$^% gnomes...


46 posted on 12/18/2013 4:41:16 AM PST by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: Olog-hai

I suspect that companies are doing well, as are their shareholders, because they are holding back on any hiring and expansion. Obamacare is likely one of the biggest reasons, along with uncertainty about what this marxist will do next.

Thus, the doings of one fool in the White House prospers larger businesses and hurts the middle class at the same time.


47 posted on 12/18/2013 4:41:28 AM PST by JudyinCanada
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To: Gen.Blather

It’s not a “if” proposition. I have forty years of working experience for Fortune 100 insurance companies. Insurance company economists predict market trends, advise actuaries, do research for the various investment operations and most assuredly are not communists.


48 posted on 12/18/2013 4:51:56 AM PST by muir_redwoods (When I first read it, " Atlas Shrugged" was fiction)
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; cardinal4; ColdOne; ...
Partisan Media Shill Christopher S. Rugaber:
The growing gap between the richest Americans and everyone else isn’t bad just for individuals. It’s hurting the U.S. economy. So says a majority of more than three dozen economists surveyed last week by The Associated Press. Their concerns tap into a debate that’s intensified as middle-class pay has stagnated while wealthier households have thrived.
Hang Soros and repeal Obamacare -- problems solved. Thanks Olog-hai.
49 posted on 12/18/2013 5:02:08 AM PST by SunkenCiv (http://www.freerepublic.com/~mestamachine/)
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To: Texas resident

“They live in an alternate universe.”

Yes, the alternate universe in which ‘wealth’ just ‘exists’, to be distributed. The alternate universe in which people will make the same efforts to be successful, no matter if they get to benefit from those efforts or not.

Unfortunately, that alternate universe actually does exist, and the connections between that universe and ours are found at universities and in government buildings.


50 posted on 12/18/2013 5:08:18 AM PST by pieceofthepuzzle
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