📅 Friday, May 24th, 2024
There is a wisdom of the head, and a wisdom of the heart.
— Charles Dickens
SOC001 Discussion
- The virtuous cycle describes an economy boom, where the economy is in high prosperity.
- Wages increase
- Productivity grows
- Economy expands
- Workers are better educated
- Government invests more
- Tax revenues increase
- Companies hire more
- Workers buy more
- (rinse and repeat)
- Economic coping mechanisms – Wages were flat across time, but people are still buying. How?
- Women going into paid work to prop family income due to lack of increase raise of their husbands.
- People began working longer hours.
- People borrowed for larger purchases.
- Economic vicious cycle
- Deficits grow
- Wages stagnates
- Workers buy less
- Companies downsize
- Tax revenues decrease
- Government cuts programs
- Workers are less educated
- Unemployment rise
- (rinse and repeat)
- Widening wealth gap undermines democracy because money comes with the power to control politics, e.g., large companies like Big Tobacco can lobby for policies that are detrimental to society. They can also influence taxing policies, which is demonstrated by the low tax rates and tax breaks of the elite (esp. capital gains, e.g., Warren Buffett pays 17.7%).
- Discussion
- Is Warren Buffett a socialist? How is this comedic/ironic?
- There is a strong correlation between political polarization & widening economic inequality. Relate this to widening inequality & downgrading of democracy.