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Topic: Academic discussion (we'll try) of politics shift away from center

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Cincydawg

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Re: Academic discussion (we'll try) of politics shift away from center
« Reply #154 on: February 26, 2025, 10:59:00 AM »
I'm wondering how inflation affects market caps, and if it does, then how much?  Seems like if inflation means prices of goods increase, then so would the price of stocks. 
This gets a bit complicated because inflation among other things tends to raise interest rates.  It also of course will increase the revenue numbers as prices increase.  This is why investors look mostly at ratios, where I worked we had a figure called "cases", or "units", it didn't depend on inflation, you had to ship more product.  The most common ratio of note is "PE" or price to earnings ratio.  

But let's imagine a stock that shows an increase in sales of 10%, but inflation was 10%, and maybe profits also went up 10%.  The stock might also rise 10%, but the actual value of the stock would remain the same.  And if you sold, you'd pay taxes on your inflationary gains.

If some bond also paid 10% in interest, that would compete for your attention, it's not quite this simple, but as bond interest rates rise, the appeal of stocks tends to diminish.


medinabuckeye1

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Re: Academic discussion (we'll try) of politics shift away from center
« Reply #155 on: February 26, 2025, 11:00:35 AM »
FIFY

The rich have always voted Republican. They're the only ones who can afford it.
I'm astounded that you could actually believe this so I suspect that you are just being snarky but if you are actually this detached from reality, here is a very liberal source with an article that will educate you:

https://slate.com/business/2004/10/why-the-super-rich-favor-kerry.html

Cincydawg

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Re: Academic discussion (we'll try) of politics shift away from center
« Reply #156 on: February 26, 2025, 11:00:39 AM »
As of February 2025, the average hourly pay for a Walmart employee in the US is $25, or $51,669 annually. However, the pay range can vary widely depending on the role, location, and experience. 

They pay what the market demands.  We could have government mandate they pay more of course.

Mdot21

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Re: Academic discussion (we'll try) of politics shift away from center
« Reply #157 on: February 26, 2025, 11:01:14 AM »
So, how much per hour is that exactly, or approximately?
therein lies the rub- every state/area requires a different amount of $. pay has to be adjusted for area. 

Gigem

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Re: Academic discussion (we'll try) of politics shift away from center
« Reply #158 on: February 26, 2025, 11:02:37 AM »
I still have the same question as before. 

I understand how inflation works and I understand how market caps work, but not necessarily the extent to which they work together.

I'm wondering how inflation affects market caps, and if it does, then how much?  Seems like if inflation means prices of goods increase, then so would the price of stocks. 

So when Microsoft, Tesla, Amazon, etc. shoot up, how much is because the companies gained real economic value, and how much (if any) is due to inflation?  It strikes me as not coincidental that these net worths have shot up over the same time as inflation skyrocketed.  (I understand there was a large xfer of wealth to the uber-wealthy in that same time frame, which would go under the "gained real economic value, 'cuz we forced it" category.)
I have the same questions.  I clearly remember it being Big Shit back in the 90's when Gates became the richest person in the world at $32 Billion dollars.  It was quite the story.  Now his wealth is much more, despite allegedly giving away a lot of it to "charity".  I put the charity in quotes because part of me thinks maybe his whole foundation is some kind of tax shelter or somewhat dodgy.  

As far as charity goes, we got a nice chunk of change from Jeff Bezos when his ex-wife McKenzie gave away millions to community colleges and our oldest got to go to a local community college for 1 full year with no tuition.  Saved us a few $$$ thousand.  
I heard Melinda has pulled back from the "Bill and Melinda Gates" foundation and is putting her money elsewhere for charity as well.  

medinabuckeye1

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Re: Academic discussion (we'll try) of politics shift away from center
« Reply #159 on: February 26, 2025, 11:04:10 AM »
there is a gigantic problem in this country with wealth inequality though- and it just gets SO much worse when government fires up the printing presses and injects trillions- like in '08-'09, like during COVID with CARES Act, and like with all of Biden's insane trillion dollar plus spending acts he signed into law which only drove the crisis further. when government prints and spends money like water all it does is devalue the dollar, inflates the price of assets (stocks, homes, & land), and that money just concentrates into the hands of the people who already have all the money. but this is not the fault of the billionaires. it is the fault of the politicians continually giving hand outs to them.
I truly believe that wealth inequality is one of the most troubling issues in our Country. 

We are heading down a road towards being like our Central and South American neighbors with a fantastically rich over-class and massive slums for everyone else.

Democrats talk about this some but most of their policies make it worse. Republicans don't generally talk about it and should.

Gigem

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Re: Academic discussion (we'll try) of politics shift away from center
« Reply #160 on: February 26, 2025, 11:04:18 AM »
And if I remember correctly, Bill has been "retired" since probably around 2010 or so.  At least a decade, if not more.  

Cincydawg

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Re: Academic discussion (we'll try) of politics shift away from center
« Reply #161 on: February 26, 2025, 11:06:38 AM »
Charitable donations are tax deductable of course (if you itemize).

I don't view it as a dodge.  You can't get rich donating money.

Basically, if you own a large chunk of some very successful company, you end up very wealthy, duh, in terms of wealth.  

medinabuckeye1

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Re: Academic discussion (we'll try) of politics shift away from center
« Reply #162 on: February 26, 2025, 11:06:53 AM »
Yeah, and I'd say that because a group of people who value $$$ (perhaps behind only anti-abortion), voting along ideology lines while getting screwed financially.

I couldn't cite it if they cared a lot about $$$ and voted $$$ or if they cared about a litany of other things above $$$.  But as it is, it's just obvious to me that they're being duped.  I don't want people to be duped. 

And many voted for the ultimate duper.  So.....yeah.  It's a sonofabitch.
I disagreed with this take before Trump but it was debatable. Trump effectively made opposition to immigration and central plank of the Republican Party and that is clearly in the best interests of all but the very wealthiest Americans. Even if YOU disagree with me, they don't and their votes depend on their beliefs not yours nor mine.

Cincydawg

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Re: Academic discussion (we'll try) of politics shift away from center
« Reply #163 on: February 26, 2025, 11:07:28 AM »
Our wealth disparity is a very intractable issue no matter who talks about it.


medinabuckeye1

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Re: Academic discussion (we'll try) of politics shift away from center
« Reply #164 on: February 26, 2025, 11:13:30 AM »
Charitable donations are tax deductable of course (if you itemize).

I don't view it as a dodge.  You can't get rich donating money.

Basically, if you own a large chunk of some very successful company, you end up very wealthy, duh, in terms of wealth. 
The trick is that when you donate appreciated assets you can deduct the appreciated value without paying the capital gains tax on that appreciation.

Cincydawg

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Re: Academic discussion (we'll try) of politics shift away from center
« Reply #165 on: February 26, 2025, 11:15:41 AM »
The trick is that when you donate appreciated assets you can deduct the appreciated value without paying the capital gains tax on that appreciation.
Yes, I have done that myself.  You still don't get rich doing it.  You'd have more money paying the cap gains tax after selling.


medinabuckeye1

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Re: Academic discussion (we'll try) of politics shift away from center
« Reply #166 on: February 26, 2025, 11:16:26 AM »
um, I think being able to pay basic living expenses without being on US government housing or food assistance programs would be a start. Walmart is notorious for being one of the biggest employers in the US having it's employees on the government teet.
I wonder why unskilled laborers (most of Wal-Mart's workforce) have been seeing their real incomes drop for ~50 years. 

It couldn't possibly be related to supply and demand . . .

Cincydawg

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Re: Academic discussion (we'll try) of politics shift away from center
« Reply #167 on: February 26, 2025, 11:19:45 AM »
In my experience, Walmart employees are, well, unmotivated.  Costco employees are highly motivated.  I quit shopping at the former.

It's just too depressing for me.

 

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