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Wall Street Oasis » Blogs » Midas Mulligan Magoo's blog

Trickle Down "Gradenomics" Forum's RSS Feed Share

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Midas Mulligan Magoo's picture
by Midas Mulligan Magoo     
 
(Senior Neanderthal, 5,250
 
Points)
  on 4/29/11 at 12:00pm
rweq

Here is a video that takes an alternative perspective on the tax redistribution debate. Though the premise is highly simplified and biased in its own way, it does say a lot about the cloud of confusion much of America's future walks on.

P.S. Dude with the chops...BB material?



Where I unload on Twits and take verbal S***s
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Tags:
  • redistribution

Comments

TwoFloors's picture

Already posted this back on

TwoFloors      IB
 
(Senior Baboon, 195
 
Points)
  on 4/29/11 at 12:10pm

Already posted this back on Monday. here's the link to the thread: http://www.wallstreetoasis.com/forums/gpa-vstax-cuts

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Nobama88's picture

Here you go Midas. New one

Nobama88      O
 
 
(King Kong, 1,421
 
Points)
  on 4/29/11 at 12:29pm

Here you go Midas.

New one about the National Debt @ Berkley from the same kids:

http://www.youtube.com/watch?v=4rDahs4cmuc&feature=player_embedded

Need to Land a Job? Click Here.

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JamesHetfield's picture

I was presenting arguments

JamesHetfield      O
 
(Gorilla, 682
 
Points)
  on 4/29/11 at 12:31pm

I was presenting arguments against Government run Health Care for my term presentation for my Microeconomics class. My Liberal teacher basically told me that whatever I said were not "fact-based" and I will probably end up getting a bad grade for this course.

I am so mad at Liberals right now.

Anyone have any solid ideas against Government run health care?

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Nobama88's picture

I got in an argument with a

Nobama88      O
 
 
(King Kong, 1,421
 
Points)
  on 4/29/11 at 12:38pm

I got in an argument with a Liberal English teacher once. I forget what it was about, but the guy told me I was a moron and threw me out of the class for the day. The very next day I went and pulled the facts and threw it on his desk in the middle of that class period.

Need to Land a Job? Click Here.

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awm55's picture

JamesHetfield wrote: I was

awm55      ST
 
(Senior Gorilla, 937
 
Points)
  on 4/29/11 at 1:06pm
JamesHetfield:

I was presenting arguments against Government run Health Care for my term presentation for my Microeconomics class. My Liberal teacher basically told me that whatever I said were not "fact-based" and I will probably end up getting a bad grade for this course.

I am so mad at Liberals right now.

Anyone have any solid ideas against Government run health care?

The problem with the Republican argument against Obama care is that their alternative is to give $15,000 to seniors for them to go out and buy their own health insurance. The problem is no one is going to insure a retired 70 year old, and when that 15k runs out they are shit out of luck. This is a clip from Bill Maher, I know the show is bias, but they were discussing the issue with Michael Steel and he literally could not respond because the Republicans have no fucking clue what to do about it. Watch minutes 3-6.

http://www.youtube.com/watch?v=iAINcFgagN0

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eokpar02's picture

Comparing grades to income is

eokpar02      EN
 
(Senior Gorilla, 847
 
Points)
  on 4/29/11 at 1:20pm

Comparing grades to income is stupid. Grades are a function of ease of classes and work ethic. Income is more of a function of where you live and what field you work in. A marine in Afghanistan works a far harder job than a New York City call girl, yet the call girl will make several times what the marine will make; does the call girl work harder? The very fact that the WSO's resident writer can post this with the implication that Income is related to GPA shows how delusional certain people are.

I am not cocky, I am confident, and when you tell me I am the best it is a compliment.
-Styles P

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San Ford's picture

Although I am not in support

San Ford      CF
 
(Senior Monkey, 95
 
Points)
  on 4/29/11 at 1:32pm

Although I am not in support of increased tax on the wealthy (fair tax, baby..), their example isn't perfectly analagous. GPA basis points are not liquid; currency is. While one could argue there is value in GPA increases, that value is hardly tangible, especially compared to cash.

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luccabananas's picture

I found it hilarious when the

luccabananas      IB
 
(Monkey, 56
 
Points)
  on 4/29/11 at 1:34pm

I found it hilarious when the girl in the Berkeley video proposed to raise the corporate tax rate. Does she not know the United States has one of the highest rates already?

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Status_Quo's picture

Interesting videos

Status_Quo     
 
(Senior Gorilla, 980
 
Points)
  on 4/29/11 at 1:52pm

Interesting videos

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cartman's picture

awm55 wrote: JamesHetfield

cartman      IB
 
 
(Senior Gorilla, 901
 
Points)
  on 4/29/11 at 3:15pm
awm55:
JamesHetfield:

I was presenting arguments against Government run Health Care for my term presentation for my Microeconomics class. My Liberal teacher basically told me that whatever I said were not "fact-based" and I will probably end up getting a bad grade for this course.

I am so mad at Liberals right now.

Anyone have any solid ideas against Government run health care?

The problem with the Republican argument against Obama care is that their alternative is to give $15,000 to seniors for them to go out and buy their own health insurance. The problem is no one is going to insure a retired 70 year old, and when that 15k runs out they are shit out of luck. This is a clip from Bill Maher, I know the show is bias, but they were discussing the issue with Michael Steel and he literally could not respond because the Republicans have no fucking clue what to do about it. Watch minutes 3-6.

http://www.youtube.com/watch?v=iAINcFgagN0

I'm not going to pretend to know a lot about Obamacare alternatives, but Michael Steele is kind of a moron.

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veritas14's picture

eokpar02 wrote: Comparing

veritas14      ST
 
(Gorilla, 673
 
Points)
  on 4/29/11 at 3:17pm
eokpar02:

Comparing grades to income is stupid. Grades are a function of ease of classes and work ethic. Income is more of a function of where you live and what field you work in. A marine in Afghanistan works a far harder job than a New York City call girl, yet the call girl will make several times what the marine will make; does the call girl work harder? The very fact that the WSO's resident writer can post this with the implication that Income is related to GPA shows how delusional certain people are.

Wages aren't a function of effort or "working hard" Wages (the cost of labor) is set by: PRODUCTIVITY & COMPETITION.

Productivity: How much revenue can you generate? How much waste can you eliminate? Are you the lowest cost provider? Are you the highest quality provider?

Competition: How many peer companies desire your production? How many alternative uses exist for your skills?

*********************************
“The American father is never seen in London. He passes his life entirely in Wall Street and communicates with his family once a month by means of a telegram in cipher.” - Oscar Wilde

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awm55's picture

Is anyone missing the simple

awm55      ST
 
(Senior Gorilla, 937
 
Points)
  on 4/29/11 at 4:18pm

Is anyone missing the simple fact that people can survive without GPA points, but that without at least a moderate level of redistribution you would be condemning a huge proportion of the population to homelessness and starvation?

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leveRAGE.'s picture

awm55 wrote: Is anyone

leveRAGE.      ST
 
 
(King Kong, 1,210
 
Points)
  on 4/29/11 at 4:40pm
awm55:

Is anyone missing the simple fact that people can survive without GPA points, but that without at least a moderate level of redistribution you would be condemning a huge proportion of the population to homelessness and starvation?

What about people who fail out of school for a lack of gpa points?

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junkbondswap's picture

eokpar02, you're argument is

junkbondswap     
 
 
(King Kong, 1,598
 
Points)
  on 4/29/11 at 4:56pm

eokpar02, you're argument is retarded and does nothing to disprove the GPA/income analogy. How can you look beyond the simple premise that what you work hard for (grades or income) should not be excessively distributed to people who are unwilling to work as hard. Who are you to argue that a marine works harder than a call girl? Sure, the battlefield is arguably more dangerous (although you could argue that sleeping with sketchy men could lead to precarious situations (i.e. STDs, murder/abuse, loss of self-worth, etc.) but prostitution is the oldest profession for a reason and one of the best analogies for capitalism (supplyinh a service that meets a demand for a profit).

awm55,

Why do you liberals always have to be so literal. Sure, you cant eat or live on your GPA but the premise of rewarding hard work and sacrifice is the same. No one is arguing against a moderate level of redistribution but what you liberals want is an excessive amount and a pound of flesh.

The purpose of the government and its social programs is to provide a safety net for those individuals who persistently try to improve their situations but may falter. The purpose is not create a system of incentives that rewards lazy idiots who thought it was better to skip class to smoke weed and buy an iphone when they cant afford to pay rent.

What ever happened to personal responsibility?

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awm55's picture

junkbondswap wrote: eokpar02,

awm55      ST
 
(Senior Gorilla, 937
 
Points)
  on 4/29/11 at 5:44pm
junkbondswap:

eokpar02, you're argument is retarded and does nothing to disprove the GPA/income analogy. How can you look beyond the simple premise that what you work hard for (grades or income) should not be excessively distributed to people who are unwilling to work as hard. Who are you to argue that a marine works harder than a call girl? Sure, the battlefield is arguably more dangerous (although you could argue that sleeping with sketchy men could lead to precarious situations (i.e. STDs, murder/abuse, loss of self-worth, etc.) but prostitution is the oldest profession for a reason and one of the best analogies for capitalism (supplyinh a service that meets a demand for a profit).

awm55,

Why do you liberals always have to be so literal. Sure, you cant eat or live on your GPA but the premise of rewarding hard work and sacrifice is the same. No one is arguing against a moderate level of redistribution but what you liberals want is an excessive amount and a pound of flesh.

The purpose of the government and its social programs is to provide a safety net for those individuals who persistently try to improve their situations but may falter. The purpose is not create a system of incentives that rewards lazy idiots who thought it was better to skip class to smoke weed and buy an iphone when they cant afford to pay rent.

What ever happened to personal responsibility?

I'm not liberal, I just like to try common fucking sense. People are acting as if this video simplifies the argument of redistribution when in reality it is totally irrelevant. I could easily say why do fringe right morons use barely comparable situations to make a general point which is exactly what this video did.

And I am a huge proponent of welfare reform (drug testing, 1 strike rule, no more aid if you have more kids etc). This proposed non of that, it made a ridiculously simplified argument that an 8 year old could understand and acted as if it is just that damn obvious. Do some people work the system, hell yes and it needs to stop. But its not everyone.

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awm55's picture

leveRAGE. wrote: awm55

awm55      ST
 
(Senior Gorilla, 937
 
Points)
  on 4/29/11 at 5:48pm
leveRAGE.:
awm55:

Is anyone missing the simple fact that people can survive without GPA points, but that without at least a moderate level of redistribution you would be condemning a huge proportion of the population to homelessness and starvation?

What about people who fail out of school for a lack of gpa points?

You have to do jack shit to fail out of school, and failing out of school is not the same thing as being homeless and starving due to a lack of money.

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leveRAGE.'s picture

awm55 wrote: leveRAGE.

leveRAGE.      ST
 
 
(King Kong, 1,210
 
Points)
  on 4/29/11 at 6:23pm
awm55:
leveRAGE.:
awm55:

Is anyone missing the simple fact that people can survive without GPA points, but that without at least a moderate level of redistribution you would be condemning a huge proportion of the population to homelessness and starvation?

What about people who fail out of school for a lack of gpa points?

You have to do jack shit to fail out of school, and failing out of school is not the same thing as being homeless and starving due to a lack of money.

Where does the lack of money come from? Being a fucking lowlife and doing jack shit with your life, causing you to be homeless. Same concept, but one doesn't fit with your liberal agenda

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awm55's picture

leveRAGE. wrote: awm55

awm55      ST
 
(Senior Gorilla, 937
 
Points)
  on 4/29/11 at 6:36pm
leveRAGE.:
awm55:
leveRAGE.:
awm55:

Is anyone missing the simple fact that people can survive without GPA points, but that without at least a moderate level of redistribution you would be condemning a huge proportion of the population to homelessness and starvation?

What about people who fail out of school for a lack of gpa points?

You have to do jack shit to fail out of school, and failing out of school is not the same thing as being homeless and starving due to a lack of money.

Where does the lack of money come from? Being a fucking lowlife and doing jack shit with your life, causing you to be homeless. Same concept, but one doesn't fit with your liberal agenda

Most homeless people are drug addicts or have serious mental illnesses. How many sane rational homeless people do you meet? You think they are homeless because they are lazy, that is moronic.

And accepting the fact that a moderate level of redistribution is necessary to run a capitalist economy within a western democratic framework is not liberal, its common fucking sense.

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eokpar02's picture

junkbondswap wrote: eokpar02,

eokpar02      EN
 
(Senior Gorilla, 847
 
Points)
  on 4/29/11 at 7:27pm
junkbondswap:

eokpar02, you're argument is retarded and does nothing to disprove the GPA/income analogy. How can you look beyond the simple premise that what you work hard for (grades or income) should not be excessively distributed to people who are unwilling to work as hard. Who are you to argue that a marine works harder than a call girl? Sure, the battlefield is arguably more dangerous (although you could argue that sleeping with sketchy men could lead to precarious situations (i.e. STDs, murder/abuse, loss of self-worth, etc.) but prostitution is the oldest profession for a reason and one of the best analogies for capitalism (supplyinh a service that meets a demand for a profit).

I question your ability to operate in society in a gainful way if you think that there is any type of analogy between GPA/INCOME. Income is a function of your wage, which is a function demand and the supply of labor, among other things. GPA has no market setting mechanism. GPA is a not a zero sum game. By getting a higher grade than my classmates, I am not affecting their ability to get good grades. The same can not be said for income, since there is extensive relationship between human capital investment and taxation. GPA isn't the basis of the school, while society can not function without individuals who earn an income.

You are an idiot. Are you really arguing that their is a modicum of possibility that call-girls do work as hard as marines? Is that your argument? Call girls go to men's domiciles and get FUCKED. I really fail to see how a NYC call girl's job could be remotely as hard as marines.

Who is saying that people aren't responsible for their actions? Who on this forum said that?

Secondly, GPA is far more akin to wealth than it is to income. My GPA was accrued over 4 years. The only thing that can be compared to GPA point distribution would be some type of wealth tax.

I am not cocky, I am confident, and when you tell me I am the best it is a compliment.
-Styles P

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heister's picture

Redistribution leads to the

heister      HF
 
 
(Neanderthal, 2,577
 
Points)
  on 4/29/11 at 7:20pm

Redistribution leads to the decay of society. People say its some shit about helping society, what a load of shit. The very idea is to foster class warfare. The "I am entitled to what he has because he has more than I do." Thats the idea they had in Greece, that worked out well for them didnt it?

Follow the shit your fellow monkeys say @shitWSOsays

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non-target's picture

I see what the video is

non-target      PE
 
(Senior Baboon, 226
 
Points)
  on 4/29/11 at 7:30pm

I see what the video is trying to prove, but gpa doesn't buy food, water or healthcare, neither can it be adjusted for rising prices. I see the point of tackling redistribution of wealth, but its only really tackling the "redistribution" part, because wealth is not comparable to gpa. but the fact is just because you give more money to the lower income bracket, doesn't necessarily mean they will spend it well and i believe this itself will cause inefficient allocation of capital in the economy.

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Warhead's picture

Interesting analogy. Sort of

Warhead      IB
 
(Senior Baboon, 244
 
Points)
  on 4/29/11 at 7:53pm

Interesting analogy. Sort of a legit one, too. Because think about: the same reasons people give for poor people being poor (parents' socio economic background, other random societal factors--we know all the "excuses," as it were--not trying to imply they are or are not legitimate excuses, so don't get pissed at me), are also reasons people might get bad grades. The difference is, people who would be against redistribution of GPA see school as more meritocratic than society. I see this as a dangerous argument though -- where do you draw the line? Redistribution of wealth only solves the symptoms of greater problems we have in society, merely redistributing wealth might make some peoples' lives better, but it perpetuates cultural and societal problems we already have.

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Warhead's picture

One problem is,

Warhead      IB
 
(Senior Baboon, 244
 
Points)
  on 4/29/11 at 8:10pm

One problem is, redistributing GPA makes GPA much more worthless than redistributing money does to money.

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physconomist's picture

What if the rich just

physconomist      CO
 
(Monkey, 50
 
Points)
  on 4/29/11 at 8:12pm

What if the rich just accepted the tax increases to pay for social welfare programs etc. under the stipulation that the recipients of such welfare need to send a thank you card once a year as well as kiss the feet of the rich whenever they see them in public. Perhaps a free shoe shine from all recipients on demand?

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bullbythehorns's picture

anyone else see that flash at

bullbythehorns      O
 
(Orangutan, 365
 
Points)
  on 4/29/11 at 8:28pm

anyone else see that flash at 4:49? subliminal message?

Here's the thing. If you can't spot the sucker in the first half hour at the table, you are the sucker.

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awm55's picture

heister wrote: Redistribution

awm55      ST
 
(Senior Gorilla, 937
 
Points)
  on 4/29/11 at 10:00pm
heister:

Redistribution leads to the decay of society. People say its some shit about helping society, what a load of shit. The very idea is to foster class warfare. The "I am entitled to what he has because he has more than I do." Thats the idea they had in Greece, that worked out well for them didnt it?

EVERY developed country in the world operates some kind of redistributive policy.

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Argonaut's picture

eokpar02 wrote: You are an

Argonaut     
 
(King Kong, 1,907
 
Points)
  on 4/29/11 at 10:20pm
eokpar02:

You are an idiot. Are you really arguing that their is a modicum of possibility that call-girls do work as hard as marines? Is that your argument? Call girls go to men's domiciles and get FUCKED. I really fail to see how a NYC call girl's job could be remotely as hard as marines.

So what you are saying is that if your only choice was getting fucked by random men in their domiciles or going on combat missions, you would rather get fucked by random men?

More is good, all is better

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Argonaut's picture

Apparently it's not all that

Argonaut     
 
(King Kong, 1,907
 
Points)
  on 4/29/11 at 10:36pm

Apparently it's not all that easy to be a hooker:

Eighty-two percent of these respondents reported having been physically assaulted since entering prostitution. Of those who had been physically assaulted, 55% had been assaulted by customers. Eighty-eight percent had been physically threatened while in prostitution, and 83% had been physically threatened with a weapon....Sixty-eight percent...reported having been raped since entering prostitution. Forty-eight percent had been raped more than five times. Forty-six percent of those who reported rapes stated that they had been raped by customers.

http://womensissues.about.com/od/rapesexualassault/a/Wuornos.htm

A study of the murder rate among prostitutes from 1981 to 1990 found that an average of 124 hookers were murdered each year in the United States, according to a 2004 article in the American Journal of Epidemiology.

http://www.foxnews.com/story/0,2933,234078,00.html

• On average, another 108 Marines die per year, most because of motor vehicle accidents, but one out of four (approximately 21) by taking their own life.

(the initial mentioned marines are separated, not dead)

http://www.mccscherrypoint.com/healthpromotion.htm

More is good, all is better

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eokpar02's picture

Argonaut wrote: eokpar02

eokpar02      EN
 
(Senior Gorilla, 847
 
Points)
  on 4/30/11 at 12:10am
Argonaut:
eokpar02:

You are an idiot. Are you really arguing that their is a modicum of possibility that call-girls do work as hard as marines? Is that your argument? Call girls go to men's domiciles and get FUCKED. I really fail to see how a NYC call girl's job could be remotely as hard as marines.

So what you are saying is that if your only choice was getting fucked by random men in their domiciles or going on combat missions, you would rather get fucked by random men?

Yes, much easier.

I am not cocky, I am confident, and when you tell me I am the best it is a compliment.
-Styles P

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mkballer's picture

This video explains the

mkballer      CF
 
(Orangutan, 294
 
Points)
  on 4/30/11 at 12:53am

This video explains the concept of redistribution of resources perfectly. It is the EXACT same concept at work as in the income argument: taking from those who are deemed to have an "excessive" amount of something and redistributing it to those that "don't have enough." Why are some of you guys even arguing this? Of course a GPA isn't money, but the concept holds: Taking from people who have worked hard for what they have to give it to someone else is not right, be it GPA, income, etc.

MKballer

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bfin's picture

mkballer wrote: This video

bfin      CF
 
(Neanderthal, 2,564
 
Points)
  on 4/30/11 at 1:10am
mkballer:

This video explains the concept of redistribution of resources perfectly. It is the EXACT same concept at work as in the income argument: taking from those who are deemed to have an "excessive" amount of something and redistributing it to those that "don't have enough." Why are some of you guys even arguing this? Of course a GPA isn't money, but the concept holds: Taking from people who have worked hard for what they have to give it to someone else is not right, be it GPA, income, etc.

This.

There is no argument after this post. How could you make a counter agreement to this in favor of redistribution is different just because money and GPA aren't one in the same..

SB for you sir

The answer to your question is 1) network 2) get involved 3) beef up your resume 4) repeat -happypantsmcgee

WSO is not your personal search function.

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cartman's picture

mkballer wrote: This video

cartman      IB
 
 
(Senior Gorilla, 901
 
Points)
  on 4/30/11 at 1:34am
mkballer:

This video explains the concept of redistribution of resources perfectly. It is the EXACT same concept at work as in the income argument: taking from those who are deemed to have an "excessive" amount of something and redistributing it to those that "don't have enough." Why are some of you guys even arguing this? Of course a GPA isn't money, but the concept holds: Taking from people who have worked hard for what they have to give it to someone else is not right, be it GPA, income, etc.

Exactly. It's a fucking analogy. No one is arguing that GPA can buy you food or water.

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Awon Eleyi Awon Eleyi Won Bad Gan's picture

Not surprised to see everyone

Awon Eleyi Awon...      IB
 
(King Kong, 1,525
 
Points)
  on 4/30/11 at 7:46am

Not surprised to see everyone agreeing with it on WSO, but it's a very flawed analogy given that GPA is capped at 4.0. The income inequality gap is much larger than the 'GPA inequality' gap. Assuming median GPA is 2.7, on that same scale, the equivalent would be an income cap at $66,000 for everyone in the US. Redistribution of resources makes no sense without a large level of inequality in society.

Secondly, given that the top earners get massively tax pwned after $175k (33%), the equivalent would be a tax on GPA above 9.18 (3.4x above the median). The 4.0 cap makes the analogy totally flawed and useless.

Thirdly, it could be worse. You could be in london and be a first year analyst getting taxed 40% ...

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NYorker's picture

Great video. Great analogy.

NYorker      IB
 
(Senior Baboon, 188
 
Points)
  on 4/30/11 at 9:19am

Great video. Great analogy. Someone commented earlier that this doesn't work because GPA isn't currency. Well to college students it kind of is... that's the most valuable thing you have as an undergrad. The analogy works because college kids feel the same way about GPA as working people do about income.

I fancy myself an independently minded citizen, who is basically a fiscal conservative and social liberal. When it comes to the topic of wealth redistribution, I definitely side with the Republicans. However, I don't believe this would be such a hot topic of debate if the middle class had a future. Back in the 50s, 60s etc, when we produced things in this country, parents of humble means didn't leverage themselves to the hilt to put their kids through college because they could live a fine middle class life working at a steel mill or at an auto plant. Once the global economy changed and those jobs left, I'm not sure what jobs exist as a replacement. Something with real estate or construction maybe? Oh wait... right.

I'm not saying it's the job of the rich to come up with a solution. I believe the only way for a solution to really take hold and be successful is for it to be dictated by social/market forces, not the government.

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NYorker's picture

Another way to look at

NYorker      IB
 
(Senior Baboon, 188
 
Points)
  on 4/30/11 at 9:33am

Another way to look at it:

The other day, I was out having beers with some people and one of my friends brought her new boyfriend along. He's a teacher. He has opinions about guys like me who work on Wall Street. After a few rounds we were all joking back and forth and he says to me:

"Do you really believe you deserve to make twice as much as me?"

Buzz kill! I tried to avoid the topic, but he kept pushing so I said, "Yes. Because I don't get off at 3:15 and I work all twelve months of the year. And because I can get fired from my job. Also, I don't make twice as much as you. It's probably more like 3x."

BUT, when the tab came, I picked it up. There's some redistribution for you! I would much prefer to supervise the spreading of my (at this point limited) wealth rather than the government because I like the feeling of at least some say in who it goes to.

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awm55's picture

I love how people have to

awm55      ST
 
(Senior Gorilla, 937
 
Points)
  on 4/30/11 at 10:26am

I love how people have to explain the analogy in the clip. A 10 year old could could figure it out, its not complicated. But it is stupid and not comparable.

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awm55's picture

Awon Eleyi Awon Eleyi Won Bad

awm55      ST
 
(Senior Gorilla, 937
 
Points)
  on 4/30/11 at 10:28am
Awon Eleyi Awon Eleyi Won Bad Gan:

Not surprised to see everyone agreeing with it on WSO, but it's a very flawed analogy given that GPA is capped at 4.0. The income inequality gap is much larger than the 'GPA inequality' gap. Assuming median GPA is 2.7, on that same scale, the equivalent would be an income cap at $66,000 for everyone in the US. Redistribution of resources makes no sense without a large level of inequality in society.

Secondly, given that the top earners get massively tax pwned after $175k (33%), the equivalent would be a tax on GPA above 9.18 (3.4x above the median). The 4.0 cap makes the analogy totally flawed and useless.

Thirdly, it could be worse. You could be in london and be a first year analyst getting taxed 40% ...

Take home income for analysts is higher in London.

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FinancePun's picture

NYorker wrote: Another way to

FinancePun      IB
 
(Senior Baboon, 190
 
Points)
  on 4/30/11 at 10:28am
NYorker:

Another way to look at it:

The other day, I was out having beers with some people and one of my friends brought her new boyfriend along. He's a teacher. He has opinions about guys like me who work on Wall Street. After a few rounds we were all joking back and forth and he says to me:

"Do you really believe you deserve to make twice as much as me?"

Buzz kill! I tried to avoid the topic, but he kept pushing so I said, "Yes. Because I don't get off at 3:15 and I work all twelve months of the year. And because I can get fired from my job. Also, I don't make twice as much as you. It's probably more like 3x."

BUT, when the tab came, I picked it up. There's some redistribution for you! I would much prefer to supervise the spreading of my (at this point limited) wealth rather than the government because I like the feeling of at least some say in who it goes to.

My stock response has always been either "I don't think about it much, mostly just try and do my job," or "feel for you, but I don't think anyone is paid based on what they deserve in the economy" (which is totally true, deservingness is a social and psychological concept). Nice of you to pick up the tab though, classy.

The analogy is totally flawed, a better example in my opinion on the dangers of collectivism, central planning and subsidization is the housing policies of a number of schools as well as meal plans, but hey do what you can.

"Dude, not trying to be a dick here, but your shop looks like a frontrunner for the cover of Better Boilerrooms & Chophouses or Bucketshop Quarterly."

-Uncle Eddie

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econ's picture

Midas Mulligan Magoo

econ      O
 
 
(Neanderthal, 2,392
 
Points)
  on 4/30/11 at 10:37am
Midas Mulligan Magoo:

Here is a video that takes an alternative perspective on the tax redistribution debate. Though the premise is highly simplified and biased in its own way, it does say a lot about the cloud of confusion much of America's future walks on.

I haven't watched the whole video clip yet, but I've often asked myself the following questions: What makes income unique? Why should people clamor so much for the redistribution of wealth, but not other things?

For example, the wealthy in the US work more hours than the poor; leaving them with less leisure time for other things. It's unfair that the poor have more leisure time, so maybe leisure time should be redistributed. People with ample leisure time should "redistribute" some of it, by baby sitting, doing laundry, mowing lawns, etc. for those unfortunate enough to not have much leisure time.

Similar argument could be made for intelligence, GPA, test scores, height, weight, athletic ability, beauty, etc. What's funny though, is how people treat wealth likes it's unique: as if it's the only thing that's inequitable (or, at least, as if it's the only inequitable thing that really matters). Seriously, I just don't get it.

P.S. As an aside, I love how Thomas Sowell always says it's silly to use the word redistribution of wealth, since wealth was not "distributed" in the first place: "Despite a voluminous and often fervent literature on "income distribution," the cold fact is that most income is not distributed: It is earned."

"Many of life's failures are people who didn't realise how close to success they were when they gave up"
~~ Thomas Edison ~~

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econ's picture

awm55 wrote: The problem with

econ      O
 
 
(Neanderthal, 2,392
 
Points)
  on 4/30/11 at 10:49am
awm55:

The problem with the Republican argument against Obama care is that their alternative is to give $15,000 to seniors for them to go out and buy their own health insurance. The problem is no one is going to insure a retired 70 year old, and when that 15k runs out they are shit out of luck. This is a clip from Bill Maher, I know the show is bias, but they were discussing the issue with Michael Steel and he literally could not respond because the Republicans have no fucking clue what to do about it. Watch minutes 3-6.

http://www.youtube.com/watch?v=iAINcFgagN0

Jesus Christ! When will you finally understand that a lot of us aren't partisan hacks! Is someone criticizing gov't run health care, you shouldn't start attacking the republican alternative. We're trying to argue principle here. Just because someone criticizes a liberal position, doesn't mean they support the conservative position. You make this same error over and over again on this forum, and it honestly gets kind of old (and turns a seemingly interesting conversation about policy into a stupid conversation about partisan politics).

"Many of life's failures are people who didn't realise how close to success they were when they gave up"
~~ Thomas Edison ~~

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econ's picture

eokpar02 wrote: Comparing

econ      O
 
 
(Neanderthal, 2,392
 
Points)
  on 4/30/11 at 10:53am
eokpar02:

Comparing grades to income is stupid. Grades are a function of ease of classes and work ethic. Income is more of a function of where you live and what field you work in. A marine in Afghanistan works a far harder job than a New York City call girl, yet the call girl will make several times what the marine will make; does the call girl work harder? The very fact that the WSO's resident writer can post this with the implication that Income is related to GPA shows how delusional certain people are.

What if we control for the ease of classes? What if after the quarter is over, in each individual class we redistribute the grades? Then would you support it?

And you're right, grades are a function of work ethic, but so is income...

I don't understand your point about the call girl vs. the soldier. Nobody said that working harder allows you to command a higher income.

"Many of life's failures are people who didn't realise how close to success they were when they gave up"
~~ Thomas Edison ~~

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econ's picture

San Ford wrote: Although I am

econ      O
 
 
(Neanderthal, 2,392
 
Points)
  on 4/30/11 at 10:54am
San Ford:

Although I am not in support of increased tax on the wealthy (fair tax, baby..), their example isn't perfectly analagous. GPA basis points are not liquid; currency is. While one could argue there is value in GPA increases, that value is hardly tangible, especially compared to cash.

How is GPA not liquid? Any teacher could easily change grades in an Excel spreadsheet...

"Many of life's failures are people who didn't realise how close to success they were when they gave up"
~~ Thomas Edison ~~

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awm55's picture

econ wrote: awm55 wrote: The

awm55      ST
 
(Senior Gorilla, 937
 
Points)
  on 4/30/11 at 10:57am
econ:
awm55:

The problem with the Republican argument against Obama care is that their alternative is to give $15,000 to seniors for them to go out and buy their own health insurance. The problem is no one is going to insure a retired 70 year old, and when that 15k runs out they are shit out of luck. This is a clip from Bill Maher, I know the show is bias, but they were discussing the issue with Michael Steel and he literally could not respond because the Republicans have no fucking clue what to do about it. Watch minutes 3-6.

http://www.youtube.com/watch?v=iAINcFgagN0

Jesus Christ! When will you finally understand that a lot of us aren't partisan hacks! Is someone criticizing gov't run health care, you shouldn't start attacking the republican alternative. We're trying to argue principle here. Just because someone criticizes a liberal position, doesn't mean they support the conservative position. You make this same error over and over again on this forum, and it honestly gets kind of old (and turns a seemingly interesting conversation about policy into a stupid conversation about partisan politics).

Someone made a comment against government run health care and said they hated liberals. What else would they even be referring to other than Obama care? You need to use examples and show the alternatives, otherwise the conversations are purely theoretical and are not grounded in reality. This often requires bringing in politics into the situation, it sucks but its necessary.

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econ's picture

veritas14 wrote: Wages aren't

econ      O
 
 
(Neanderthal, 2,392
 
Points)
  on 4/30/11 at 10:59am
veritas14:

Wages aren't a function of effort or "working hard" Wages (the cost of labor) is set by: PRODUCTIVITY & COMPETITION.

Productivity: How much revenue can you generate? How much waste can you eliminate? Are you the lowest cost provider? Are you the highest quality provider?

Competition: How many peer companies desire your production? How many alternative uses exist for your skills?

Good point, but let me get a little nit picky anyway haha. Productivity and competition might be functions of working and, therefore, wages might be a function of working hard too.

Also, good clarification on productivity with the revenue comment. A lot of people get confused about productivity. For example, is Michael Jordan and the best lacrosse player in the world might be equally skillful/productive in their respective sports. So why does MJ make more? Because people value his output more (i.e. people enjoy consuming is productivity more than the lacrosse player). In other words, VALUE IS SUBJECTIVE!

"Many of life's failures are people who didn't realise how close to success they were when they gave up"
~~ Thomas Edison ~~

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econ's picture

awm55 wrote: Is anyone

econ      O
 
 
(Neanderthal, 2,392
 
Points)
  on 4/30/11 at 11:02am
awm55:

Is anyone missing the simple fact that people can survive without GPA points, but that without at least a moderate level of redistribution you would be condemning a huge proportion of the population to homelessness and starvation?

We have redistribution now and we still have starvation and homelessness? Even without redistribution, people often find ways to survive. Lastly, why do you feel you have the right to take from someone and give to someone else because you think they "need it?"

"Many of life's failures are people who didn't realise how close to success they were when they gave up"
~~ Thomas Edison ~~

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econ's picture

awm55 wrote: I'm not liberal,

econ      O
 
 
(Neanderthal, 2,392
 
Points)
  on 4/30/11 at 11:05am
awm55:

I'm not liberal, I just like to try common fucking sense. People are acting as if this video simplifies the argument of redistribution when in reality it is totally irrelevant.

It is not necessarily irrelevant. You're right that it's simplified, but that's the whole fucking point. Explain to me why we should redistribute wealth, but not many other things? If you can't come up with a solid, logical answer to that question, then you miss the whole point of the video and, therefore, the whole point of the argument (and actually, this whole topic, in general).

"Many of life's failures are people who didn't realise how close to success they were when they gave up"
~~ Thomas Edison ~~

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econ's picture

awm55 wrote: leveRAGE.

econ      O
 
 
(Neanderthal, 2,392
 
Points)
  on 4/30/11 at 11:07am
awm55:
leveRAGE.:
awm55:

Is anyone missing the simple fact that people can survive without GPA points, but that without at least a moderate level of redistribution you would be condemning a huge proportion of the population to homelessness and starvation?

What about people who fail out of school for a lack of gpa points?

You have to do jack shit to fail out of school, and failing out of school is not the same thing as being homeless and starving due to a lack of money.

You have to do jack shit to make enough money to feed and house yourself. What's your point?

Will you please, for once, address the fundamental principle behind all this: Is it right to redistribute wealth? If it is okay to redistribute wealth, then is it also okay to redistribute many other things? If it's right to redistribute wealth, but not other things, why?

"Many of life's failures are people who didn't realise how close to success they were when they gave up"
~~ Thomas Edison ~~

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econ's picture

awm55 wrote: Most homeless

econ      O
 
 
(Neanderthal, 2,392
 
Points)
  on 4/30/11 at 11:09am
awm55:

Most homeless people are drug addicts or have serious mental illnesses. How many sane rational homeless people do you meet? You think they are homeless because they are lazy, that is moronic.

Let's assume (for simplicity) that all homeless people are drug addicts. Why does that give you the right to take my money and give it to them? Furthermore, what gives you the right to take my money and pay politicians, beauracrats, and poor people who are not homeless (nor drug addicts)?

awm55:

And accepting the fact that a moderate level of redistribution is necessary to run a capitalist economy within a western democratic framework is not liberal, its common fucking sense.

Way to back up your statement with any common sense...

"Many of life's failures are people who didn't realise how close to success they were when they gave up"
~~ Thomas Edison ~~

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econ's picture

eokpar02 wrote: GPA has no

econ      O
 
 
(Neanderthal, 2,392
 
Points)
  on 4/30/11 at 11:13am
eokpar02:

GPA has no market setting mechanism. GPA is a not a zero sum game. By getting a higher grade than my classmates, I am not affecting their ability to get good grades. The same can not be said for income, since there is extensive relationship between human capital investment and taxation.

Wow! No offense dude, but that is the shittiest economics I've ever heard. First, their is a "market" for grades. Anyone who denies this has a narrow view of markets. (There's markets for marriage, crime, and a million other things).

Income is absolutely NOT a zero sum game. That's the fallacy that many people make. Wealth/income is created and therefore positive sum. The per capita income of the world keeps increasing, which would be impossible if wealth was zero sum.

"Many of life's failures are people who didn't realise how close to success they were when they gave up"
~~ Thomas Edison ~~

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econ's picture

non-target wrote: I see what

econ      O
 
 
(Neanderthal, 2,392
 
Points)
  on 4/30/11 at 11:16am
non-target:

I see what the video is trying to prove, but gpa doesn't buy food, water or healthcare, neither can it be adjusted for rising prices. I see the point of tackling redistribution of wealth, but its only really tackling the "redistribution" part, because wealth is not comparable to gpa. but the fact is just because you give more money to the lower income bracket, doesn't necessarily mean they will spend it well and i believe this itself will cause inefficient allocation of capital in the economy.

First: Doesn't GPA influence income? If so, than doesn't GPA indirectly by food, water, and health care?

Second: That overlooks the issue anyway. What principle says it's okay to redistribute stuff that buys food, water, and healthcare, but not other stuff? By your logic, why don't we just cut out the middleman (money) and redistribute healthcare, food, and water directly?

"Many of life's failures are people who didn't realise how close to success they were when they gave up"
~~ Thomas Edison ~~

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