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Re: Klarman worried about political divide


Guest MarkS

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According to the NYT:

 

"Seth Klarman, a hedge fund billionaire some call the next Warren Buffett, wrote a sobering letter warning his investors of the economic impact of global tension, rising debt and pervasive political divide.

 

"It can't be business as usual amid constant protests, riots, shutdowns and escalating social tensions," Klarman wrote in the annual letter to investors, according to a New York Times column filed by CNBC "Squawk Box" co-anchor Andrew Ross Sorkin. "

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Hey all:

 

I am also worried about the political divide.  Say what you will...but it is certainly WORSE now than it was in 2010.

 

I am also distressed about the rise & seeming popularity of that Occasio Cortez from NY.  The vast majority of what she spouts is simply ignorant.  So many young people are NOT getting any type of education in finance or economics.  This has been going on for a LONG time, decades perhaps.

 

SO, if people have little to no understanding of economics, business, or finance, is it any wonder that they don't know how the system works/functions.  They are also scared and or skeptical of capitalism...and then think well geez, socialism is promising free healthcare, education, and TONS OF FUN!  Why not?  What could possibly go wrong?

 

Couple that with ignorance of current events and history. 

 

What could possibly go wrong?

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Hey all:

 

I am also worried about the political divide.  Say what you will...but it is certainly WORSE now than it was in 2010.

 

I am also distressed about the rise & seeming popularity of that Occasio Cortez from NY.  The vast majority of what she spouts is simply ignorant.  So many young people are NOT getting any type of education in finance or economics.  This has been going on for a LONG time, decades perhaps.

 

SO, if people have little to no understanding of economics, business, or finance, is it any wonder that they don't know how the system works/functions.  They are also scared and or skeptical of capitalism...and then think well geez, socialism is promising free healthcare, education, and TONS OF FUN!  Why not?  What could possibly go wrong?

 

Couple that with ignorance of current events and history. 

 

What could possibly go wrong?

[/quote

+1

Dalio thinks AOC's tax plan may have legs.

https://www-bloomberg-com.cdn.ampproject.org/v/s/www.bloomberg.com/amp/news/articles/2019-01-22/ocasio-cortez-buzz-hits-davos-as-dalio-says-70-tax-talk-to-rise?amp_js_v=a2&amp_gsa=1&usqp=mq331AQCCAE%3D#referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2019-01-22%2Focasio-cortez-buzz-hits-davos-as-dalio-says-70-tax-talk-to-rise

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Hey all:

 

I am also worried about the political divide.  Say what you will...but it is certainly WORSE now than it was in 2010.

 

I am also distressed about the rise & seeming popularity of that Occasio Cortez from NY.  The vast majority of what she spouts is simply ignorant.  So many young people are NOT getting any type of education in finance or economics.  This has been going on for a LONG time, decades perhaps.

 

SO, if people have little to no understanding of economics, business, or finance, is it any wonder that they don't know how the system works/functions.  They are also scared and or skeptical of capitalism...and then think well geez, socialism is promising free healthcare, education, and TONS OF FUN!  Why not?  What could possibly go wrong?

 

Couple that with ignorance of current events and history. 

 

What could possibly go wrong?

 

AOC has a degree in economics and her policies are pretty much the standard in the Western World (sans the USA).  What are you talking about?

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I'd like to solve the Cortez Ocazio puzzle.

 

Supposedly poor girl from the hood.

Attends top 25 university in the county that also happens to be one of the most expensive to attend, in one of the most expensive areas to live

Upon graduating becomes a bar tender

 

ALEX, I'LL TAKE SPOILED, LAZY, MILLENNIAL BRAT FOR $1000!

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"AOC has a degree in economics and her policies are pretty much the standard in the Western World (sans the USA).  What are you talking about?"

 

Taxing anything above $10 million at 70% rate is standard?

 

You are the one who should learn about what you are talking about!

 

Cardboard

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Hey all:

 

I am also worried about the political divide.  Say what you will...but it is certainly WORSE now than it was in 2010.

 

I am also distressed about the rise & seeming popularity of that Occasio Cortez from NY.  The vast majority of what she spouts is simply ignorant.  So many young people are NOT getting any type of education in finance or economics.  This has been going on for a LONG time, decades perhaps.

 

SO, if people have little to no understanding of economics, business, or finance, is it any wonder that they don't know how the system works/functions.  They are also scared and or skeptical of capitalism...and then think well geez, socialism is promising free healthcare, education, and TONS OF FUN!  Why not?  What could possibly go wrong?

 

Couple that with ignorance of current events and history. 

 

What could possibly go wrong?

 

AOC has a degree in economics and her policies are pretty much the standard in the Western World (sans the USA).  What are you talking about?

 

She seems iffy to me.  https://www.realclearpolitics.com/video/2018/07/18/ocasio-cortez_unemployment_is_low_because_everyone_has_two_jobs.html

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"AOC has a degree in economics and her policies are pretty much the standard in the Western World (sans the USA).  What are you talking about?"

 

Taxing anything above $10 million at 70% rate is standard?

 

You are the one who should learn about what you are talking about!

 

Cardboard

 

I read a few days ago that 26 people essentially own 50% of the world's capital.

 

I think higher taxes on the uberrich would do quite a bit to help the income inequality that AOC is referencing when she talks about people working two jobs and still struggling to make ends meet. This is IMO due to wage stagnation:

 

http://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/

 

You'll also note that any wage growth has gone to top earners.

http://www.pewresearch.org/wp-content/uploads/2018/08/FT_18.07.26_hourlyWage_increases.png

 

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"AOC has a degree in economics and her policies are pretty much the standard in the Western World (sans the USA).  What are you talking about?"

 

Taxing anything above $10 million at 70% rate is standard?

 

You are the one who should learn about what you are talking about!

 

Cardboard

 

I read a few days ago that 26 people essentially own 50% of the world's capital.

 

I think higher taxes on the uberrich would do quite a bit to help the income inequality that AOC is referencing when she talks about people working two jobs and still struggling to make ends meet. This is IMO due to wage stagnation:

 

http://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/

 

You'll also note that any wage growth has gone to top earners.

http://www.pewresearch.org/wp-content/uploads/2018/08/FT_18.07.26_hourlyWage_increases.png

 

LC this isn't a gotcha question, seriously.  You imply that raising U.S. Taxes would help with world wealth inequality.  The 26 people that you're referring too are being compare to the world's poorest people - presumably in places like sub-saharan Africa among others.  Why is it our responsibility to fix global wealth inequality?

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"I think higher taxes on the uberrich would do quite a bit to help the income inequality that AOC is referencing when she talks about people working two jobs and still struggling to make ends meet. This is IMO due to wage stagnation:"

 

Of course you are in favour of that... It would not affect you. Is that how you think? Make others pay but, not me?

 

It would not affect me directly either however, I am sure it would affect me indirectly.

 

Taking more from the rich would not solve any of the problems: they would move out, find ways to not earn as much taxable income and some would just give up pushing for more.

 

All of this means a trend toward less overall wealth, less competitiveness, less innovation.

 

Where is the evidence for this? Throughout history.

 

It has happened in the U.K. where they failed miserably taxing top income at 98%.

 

It is happening today in the U.S. where we have full employment due in part to corporate tax rates that are finally competitive with the world.

 

Finally, you don't solve problems by handing out free money to people. You solve them by creating opportunities.

 

Cardboard

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"AOC has a degree in economics and her policies are pretty much the standard in the Western World (sans the USA).  What are you talking about?"

 

Taxing anything above $10 million at 70% rate is standard?

 

You are the one who should learn about what you are talking about!

 

Cardboard

 

I read a few days ago that 26 people essentially own 50% of the world's capital.

 

I think higher taxes on the uberrich would do quite a bit to help the income inequality that AOC is referencing when she talks about people working two jobs and still struggling to make ends meet. This is IMO due to wage stagnation:

 

http://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/

 

You'll also note that any wage growth has gone to top earners.

http://www.pewresearch.org/wp-content/uploads/2018/08/FT_18.07.26_hourlyWage_increases.png

 

LC this isn't a gotcha question, seriously.  You imply that raising U.S. Taxes would help with world wealth inequality.  The 26 people that you're referring too are being compare to the world's poorest people - presumably in places like sub-saharan Africa among others.  Why is it our responsibility to fix global wealth inequality?

 

I mean it on a global level, not just the US.

 

Logically, US taxes should address US income inequality.

 

One could also argue that the US has directly contributed to de-stabilization of certain regions (the middle east for example) and should therefore shoulder some responsibility in those regions as well. I'm sure there is room for disagreement over the strength of this argument (I'm generally on the side of, if we helped make the mess, we should help clean it up).

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Of course you are in favour of that... It would not affect you. Is that how you think? Make others pay but, not me?

No Cardboard that is not how I think, the fact that you jump to that conclusion is evidence of your extreme bias and illogical though process.

 

Lesson? If you're going to ask loaded questions expect a loaded response.

 

Taking more from the rich would not solve any of the problems: they would move out, find ways to not earn as much taxable income and some would just give up pushing for more.

Tons of regions countries are doing just fine (and arguably better than the US) with more progressive tax schemes.

 

Finally, you don't solve problems by handing out free money to people. You solve them by creating opportunities.

Who said anything about handing out free money? Again your bias is showing.

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Of course you are in favour of that... It would not affect you. Is that how you think? Make others pay but, not me?

/quote]

No Cardboard that is not how I think, the fact that you jump to that conclusion is evidence of your extreme bias and illogical though process.

 

Lesson? If you're going to ask loaded questions expect a loaded response.

 

Taking more from the rich would not solve any of the problems: they would move out, find ways to not earn as much taxable income and some would just give up pushing for more.

Tons of regions countries are doing just fine (and arguably better than the US) with more progressive tax schemes.

 

Finally, you don't solve problems by handing out free money to people. You solve them by creating opportunities.

Who said anything about handing out free money? Again your bias is showing.

 

 

Thats not how you claim to think, but that's the end result of what you suggest.... OK then.

 

And in regards to the bolded, holy shit. These games are just too much. You advocate a redistribute the wealth position. And then go "who said anything about handing out free money"... Seriously?

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Thats not how you claim to think, but that's the end result of what you suggest.... OK then.

 

And in regards to the bolded, holy shit. These games are just too much. You advocate a redistribute the wealth position. And then go "who said anything about handing out free money"... Seriously?

Is it free money to tax the 1% to pay workers to build your wall?

 

Is it free money to tax the 1% and reduce gov't debt?

 

Is it free money to tax the 1% and pay for better public schooling, so that future generations don't ask such silly questions? What we really need is intelligence redistribution (kidding!) ;D ;D

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Hey all:

 

I am a little concerned about the talk of "some people have too much".

 

As long as they didn't do anything illegal/highly unethical, what difference does it make to me (or anybody else) HOW much wealth they have?

 

Of course, the mega rich should pay their "fair" share of taxes...and maybe that should be a higher percentage than your nursing home CNA, fry-O-lator operator, or small business person.  HOWEVER, at rates approaching OR exceeding 50%, I've got a problem with that.  How is it ethical that the government gets/takes MORE of the money that YOU make?

 

 

 

 

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I love the idea of a 70% income tax.

 

I think it's insulting when conservatives are like "take from those that earn it and give to those that don't! that's fair!"

 

What do you call it when a state gives money to a corporation to relocate there? Does Amazon really need billions of dollars to help their business? What do you call when a city builds a stadium for a sporting event and increasing taxes on people? What do you call when the government bails out the economy? Is this not the "havenots" giving to the haves?

 

Do you really think that a baseball player would stop playing baseball if he were taxed at 50%? Do you think a CEO would not take a job? Do you think a hedge fund manager might be like "well, I'm not going to do that because I don't want to pay 70% taxes". Highly, highly doubtful.

 

The US operated with a 90% income tax and people still worked.

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Hey all:

 

I am a little concerned about the talk of "some people have too much".

 

As long as they didn't do anything illegal/highly unethical, what difference does it make to me (or anybody else) HOW much wealth they have?

 

Of course, the mega rich should pay their "fair" share of taxes...and maybe that should be a higher percentage than your nursing home CNA, fry-O-lator operator, or small business person.  HOWEVER, at rates approaching OR exceeding 50%, I've got a problem with that.  How is it ethical that the government gets/takes MORE of the money that YOU make?

Well are you concerned about the ethics of an x% marginal tax rate or are you concerned about instability/political divide?

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Hey all:

 

I am also worried about the political divide.  Say what you will...but it is certainly WORSE now than it was in 2010.

 

I am also distressed about the rise & seeming popularity of that Occasio Cortez from NY.  The vast majority of what she spouts is simply ignorant.  So many young people are NOT getting any type of education in finance or economics.  This has been going on for a LONG time, decades perhaps.

 

SO, if people have little to no understanding of economics, business, or finance, is it any wonder that they don't know how the system works/functions.  They are also scared and or skeptical of capitalism...and then think well geez, socialism is promising free healthcare, education, and TONS OF FUN!  Why not?  What could possibly go wrong?

 

Couple that with ignorance of current events and history. 

 

What could possibly go wrong?

 

AOC has a degree in economics and her policies are pretty much the standard in the Western World (sans the USA).  What are you talking about?

 

AOC hasn't learned a thing. She may have a degree, but she doesn't understand economics or capitalism. She is pretty and extremely naive - the stuff that comes out of her mouth shows complete ignorance. But elected she is!

Scary.

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Of course, the mega rich should pay their "fair" share of taxes...and maybe that should be a higher percentage than your nursing home CNA, fry-O-lator operator, or small business person.  HOWEVER, at rates approaching OR exceeding 50%, I've got a problem with that.  How is it ethical that the government gets/takes MORE of the money that YOU make?

 

Fair is the operative word. Winners in our capitalist society take advantage of both societal norms and public services. How to quantify that is difficult.

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