Buffett: Stop Blaming The Rich For Income Inequality

[Odinson]

Six global banks will pay more than $5.6bn to settle allegations that they rigged foreign exchange markets, in a scandal the FBI said involved criminality "on a massive scale".



Four banks also agreed to plead guilty to conspiring to fix prices and rig bids in the $5.3tn a day forex market, in what they hope will draw a line under one of the biggest cases of misconduct in banking since the global financial crisis.



One Barclays trader wrote in a November 5, 2010 chat: "If you aint cheating, you aint trying", according to the New York Department of Financial Services, which was part of the settlement.



"Questions will be asked as to why no CEO or senior figure has resigned at any of these banks as the size of this fine and the investigations so far have revealed the rigging of forex was part of the culture of these banks," he said.



The revelation that traders colluded to move around currency exchange rates was particularly embarrassing for the banks because it occurred after they had paid billions of dollars to settle claims that their traders had tried to rig interbank lending rates.



http://www.ft.com/intl/cms/s/0/23fa681c-fe73-11e4-be9f-00144feabdc0.html#slide0">//http://www.ft.com/intl/cms/s/0/23fa681c-fe73-11e4-be9f-00144feabdc0.html#slide0

When someone steals $5, it's a crime. When banks steal $5 billion, they're rewarded with a slap on the wrist, bonuses and higher profits. Billions in fraud and not one single fraudster sees any jail time.

I saw something today you'll like:



https://scontent-sea1-1.xx.fbcdn.net/hphotos-xfp1/v/t1.0-9/10408845_1125750300775298_2052447650935350164_n.jpg?oh=bb3c6a397dfcf660f4b75316d8249451&oe=55C20389">

Not fair...



Iceland doesnt have nogsters...

[Bricktop]

And our resident left-O-nut comes out of the woodwork.



Yes, yes everyone who flips burgers or stocks a grocery store shelf DESERVES $15 dollars an hour or more. ac_toofunny It's only.......FAIR!  ac_rollseyes

The top can spare some for the lower rung.  It's 2015 - wages have been stagnant our whole lives.  $15 is completely reasonable (or it wouldn't have gone this far to be implemented - it's a tough argument to ask for a piece that threatens the bottom line). ac_sothere

When are people like you going to fully understand the damaging implications of what you propose and want? Is that ever going to happen in my lifetime? Just let me know now if I should give up hope.

How about YOU identify these "damaging implications"?



Bill Gates has to survive on 10 million dollars a year?



What you ignore is that the wealth he possesses comes directly from the people who now struggle. It was never his in the first place. Likewise all these mega-rich assholes.



They can part with half their wealth and not suffer ONE iota.

[Anonymous]

Warren Buffet seems like such a kind, grandfatherly man..



He may not be as kind so kind, but he seems that way though.

[Odinson]

Having talked to the coloured people and their self-hating white followers in the USA... Just facepalm..



Really frustrating conversation.



Either I´m being seriously trolled or these monkeys really think that education and paying taxes is some kind of a white conspiracy.

[Renee]

And our resident left-O-nut comes out of the woodwork.



Yes, yes everyone who flips burgers or stocks a grocery store shelf DESERVES $15 dollars an hour or more. ac_toofunny It's only.......FAIR!  ac_rollseyes

The top can spare some for the lower rung.  It's 2015 - wages have been stagnant our whole lives.  $15 is completely reasonable (or it wouldn't have gone this far to be implemented - it's a tough argument to ask for a piece that threatens the bottom line). ac_sothere

When are people like you going to fully understand the damaging implications of what you propose and want? Is that ever going to happen in my lifetime? Just let me know now if I should give up hope.

How about YOU identify these "damaging implications"?



Bill Gates has to survive on 10 million dollars a year?



What you ignore is that the wealth he possesses comes directly from the people who now struggle. It was never his in the first place. Likewise all these mega-rich assholes.



They can part with half their wealth and not suffer ONE iota.

I was referring to the issue of raising the minimum wage and it's historical effect on the job market and economy. I'm not talking about wether or not the mega rich can afford to spare a dime. If you can't follow along then STFU.



Furthermore asal knew exactly what I was referring to which makes her smarter and more perceptive than you. The concerns over raising the minium wage are well documented and always the same. The path through this discussion is well worn and we'll traveled. It is not my problem if blockheads like you get lost along the way.



You asked me to elaborate my position on this and I say it wasn't unnecessary to do so. Maybe a better question for you to ask is "Why do you (Leo) constantly give me (Renee) the opportunity to abuse the shit out of you (Leo) like this"?

[Renee]

ac_cool   You see it as damaging.  In the short term it is.  In the long term things would be more stable than they are now.  This would be such a challenge to argue.  The thing is, it won't happen as we want (those of us who want better low income wages) in our lifetime.  That is my reassurance to you.   ac_flower  It's an academic exercise only, but it would be nice.

You have to remember that most of the business in the US are small and medium size businesses. They also create the lion's share of the jobs. These businesses are not owned by the Buffet's and Gate's of the world. A rise in the minimum wage as dramatic as what some are calling for would be a huge shit sandwich these small companies would have to swallow. Ultimately we would all have to take a bite so I don't see the win long or short term.

[J0E]

Here's how the minimum wage compares around the globe:



 http://en.m.wikipedia.org/wiki/List_of_minimum_wages_by_country">http://en.m.wikipedia.org/wiki/List_of_ ... by_country">http://en.m.wikipedia.org/wiki/List_of_minimum_wages_by_country



http://upload.wikimedia.org/wikipedia/commons/thumb/0/0b/Map_of_global_minimum_wages_per_hour_in_USD.svg/640px-Map_of_global_minimum_wages_per_hour_in_USD.svg.png">



Australia, New Zealand & many European countries have the highest minimum wages in the world.

[RW]

ac_cool   You see it as damaging.  In the short term it is.  In the long term things would be more stable than they are now.  This would be such a challenge to argue.  The thing is, it won't happen as we want (those of us who want better low income wages) in our lifetime.  That is my reassurance to you.   ac_flower  It's an academic exercise only, but it would be nice.

You have to remember that most of the business in the US are small and medium size businesses. They also create the lion's share of the jobs. These businesses are not owned by the Buffet's and Gate's of the world. A rise in the minimum wage as dramatic as what some are calling for would be a huge shit sandwich these small companies would have to swallow. Ultimately we would all have to take a bite so I don't see the win long or short term.

Most places that pay minimum wage are the Mc jobs.  I don't think small and medium businesses would really feel much of a burn at because they have few employees.

[cc]

That logic fails. Small business's have less employees and also less income .. ususally proportional  .. they feel increased costs much moreso



They also need to make a higher % against costs to survive .. large businesses can and usually do run on quite low % profits while maintaining a large actual profit in dollars .. small ones do not because they cannot do so and at the same time support the owner(s) with a living profit / wage



Take for example a total sales of 200,000 ... or even more .. there must be a high % profit just to survive and feed the owners let alone make a profit

[RW]

Large business runs on low profits?  Since when?

[cc]

I did NOT say that ... That's a Querky approach to what I was saying. ... although in many cases large firms must run lean on  profit %  to compete .. many types make a lot of total $ but % profit is lean. I DID say it can and often does run on lower profit ratio then small businesses who must be high % just to survive



Specifically. I was addressing your " I don't think small and medium businesses would really feel much of a burn at because they have few employees." as the very opposite of reality .. and of necessity .. they don't have the overall dollars as cushion .... i.e. they usually have no slack to play with

[RW]

Where are you getting this from cc?



The funny thing is, minimum wage goes up to meet inflation and small businesses seem to be able to manage the increase as they do it all the time.



Explain.

[Anonymous]

This whole subject should be common sense, but as we can see from Romero's posts sense is not so common.



Why were wage increases higher and taxes lower in the 1960's? It's demographics stupid. More people being productive, younger population, fewer seniors and they didn't live as long. This all means less burden on health care, CPP/OAS. More workers for every retiree compared to now.



Jump forward 45 years and you have fewer workers supporting more seniors, more people requiring major health care. If it wasn't for immigration we would be like Japan with more seniors in diapers than babies. If we want wages above the steady tax increases/gouging, we have to have more babies. Older societies like those in the West/Japan have anemic growth rates while incurring higher costs. It's really that simple.



As for what CEO's/rock stars/actors/athletes make, how does that have any affect on our low growth trajectory?

[RW]

We didn't ship all our jobs to China back then.  Technology isn't what it was then either.  These are both major factors in terms of work force composition.  I would say more so than demographics.



What good is excess personal wealth in terms of a demonstrable economic benefit?

[Anonymous]

We didn't ship all our jobs to China back then.  Technology isn't what it was then either.  These are both major factors in terms of work force composition.  I would say more so than demographics.



What good is excess personal wealth in terms of a demonstrable economic benefit?

If we shipped all those jobs back, we would need to bring in more temporary foreigners to do them because Canadians won't. Technology has indeed changed and made things Westerners would have saved for a year or more readily available to everyone, but that works with your point about overseas manufacturing. Demographic and economic decline go hand in hand.



As for excess personal wealth eh? If we are talking about Alec Baldwin or Kanye West, I agree they are wastes of skin and contribute nothing. Buffet and Gates, no fucking way.