PeakTrader.com

[administrator]

PeakTrader:

“Let’s pass a statute that mandates a $25 minimum hand-out to a beggar.”

The beggar I know, Eddie, who my girlfriend and I paid him one day for some work, because we felt sorry for him, wears an eye-patch, limps, and has his “sorry” voice down pat when he panhandles.

The last time I saw him, we talked for about five minutes, and he collected around $4 from several people, while we talked.

$25 an hour would be an insult to him.

By the way, he throws away his pennies, which the Hispanic women working at the store pick-up.

****

Another false assumption. Don has his story and I have mine. Don’t be so simple (both are ridiculous, athough mine is real).

****

More false assumptions. I used that simple sentence, that even you can understand, as a point of reference to support why my entire statement was relevant.

Just because you often can’t understand simple sentences, you assume other people can’t understand them either.

It’s no wonder you can’t understand economics, like the other people in your circus, who don’t even know they constantly contradict themselves, along with reality.

****

And you state: “You apparently missed the striking comparison between a minimum wage and a minimum handout, and its detrimental effect on the intended beneficiaries.”

There is no comparison, because a handout represents a final price, not a cost of production, which represents many variables, that are not constant.

Also, I stated before, a minimum wage raised to $10 an hour may have a positive effect on economic growth. However, a minimum wage raised to $20 an hour may have a negative effect on economic growth (i.e. the negative employment effect may be greater than the positive income effect).

---

http://www.aei-ideas.org/2013/07/monday-afternoon-links-7/#comments

---

“Drug prohibition causes carnage across the globe…”

Joseph Goebbels would’ve been proud.

When you plug the one hole in the dam and the result is 50 new holes, then what do you do?

****

“US homeownership rate fell to 65.1%…Proof…government intervention in the housing and mortgage markets…failed to increase homeownership in the long run.”

If Congress began tightening lending standards in 2004, when the Fed began tightening the money supply, we could’ve averted the recession or had a milder recession.

When people lose their jobs they’re less able to fulfill their responsibilities, like paying a mortgage.

And, even if there was a severe recession, appropriate fiscal policy would’ve gave us a stronger recovery, perhaps even a V-shaped recovery, instead of this ongoing train wreck.

****

“Let’s legalize insider trading – it enriches and informs us, and could prevent scandals.”

There’s already insider trading. The insiders win and the outsiders lose.

****

If a stock is selling at $50 a share and an insider knows the company will be bought at $100 a share, for example, then the insider, buying the stock up to $100 a share, will gain at the expense of outsiders.

****

The stock market is a zero-sum game. If the stock market rises 10% in a year and insiders make 100%, then outsiders make less than 10%.

Moreover, outsiders may buy the $100 stock at $120 speculating it’ll go higher.

Furthermore, if an insider knows the stock will fall to $10, outsiders will lose there too.

In case you and Methinks don’t know, there are buyers and sellers in the stock market.

****

John Dewey, you’ve never disproven anything I said.

You're just a whiner, since I’ve proven you wrong many times before.

---