Why Bernie is wrong and Hillary is right about economics. (Hillary Group)

[Sancho]

Bernie wants everyone to watch his economic video, but here's the video you should watch!! Hillary is correct that:
1.) Companies need to SHARE the profit with employees
2.) Companies should have INTERNATIONAL REGULATION so that banks and investment companies behave.

Bernie does not mention or understand either policy that Hillary advocates. He wants an increase in minimum wage, create more jobs, and have a tax on transactions. None of these are useful for future equality.
http://www.foreconomicjustice.org/15085/bernie-sanders-in-depth-explanation-of-income-inequality
It's about 8 minutes. Half way through he provides his solutions to the "problems" of the US economy, but he makes a number of logical and economic mistakes. I'll describe them here.

First, he claims there is inequality of wealth in the US. That is true. There are multiple reasons for the current inequality, but the primary one is this as described here:
The Economics of Inequality Hardcover – August 3, 2015
by Thomas Piketty (Author), Arthur Goldhammer (Translator)

Thomas Piketty: New thoughts on capital in the twenty-first century

In today's capitalism, money invested in various speculations will exceed investment in companies with employees, so the system is to blame as much as "bad actors" or "minimum wages" or "lack of jobs". With international banking available, breaking up US banks is meaningless. Raising the minimum wage is meaningless (as far as inequity). Trying to change "taxes" when money is offshore is meaningless. Wealth just reinvests and passes on wealth to family as inheritance!

Breaking up US banks would do nothing. Closing tax loopholes might help. Most big banks are not in the US, and most influential money is not in the US. The US can't "break up" international banks, and without Congress cannot change the possibility of "influence".

https://en.wikipedia.org/wiki/List_of_largest_banks

1 China Industrial & Commercial Bank of China (ICBC)
2 China China Construction Bank Corporation
3 United Kingdom HSBC Holdings
4 China Agricultural Bank of China
5 United States JPMorgan Chase & Co.
6 France BNP Paribas
7 China Bank of China
8 Japan Mitsubishi UFJ Financial Group
9 France Crédit Agricole Group
10 United Kingdom Barclays PLC
11 United States Bank of America
12 Germany Deutsche Bank
13 United States Citigroup Inc
14 Japan Japan Post Bank
15 United States Wells Fargo
16 Japan Mizuho Financial Group
17 United Kingdom Royal Bank of Scotland Group
18 China China Development Bank
19 France Société Générale
20 Spain Banco Santander

http://www.huffingtonpost.com/2013/04/29/wealthy-stashing-offshore_n_3179139.html
Global Super-Rich Stashing Up To $32 Trillion Offshore, Masking True Scale Of Inequality: Study
The global super-rich are stashing trillions of dollars offshore with the help of some of the world's biggest banks, putting billions of dollars out of the taxman’s reach and masking wealth inequality's true heights.

We need a GLOBAL TRANSPARENCY of banking and investments. Progressive taxes are useful to a degree, but useless without international regulation. We need PROFIT SHARING so that no matter how much is earned, the workers get their piece of the pie!

Here's Hillary's plan in detail:
Listen at 22 mins. (Heck, listen to the whole thing.)
http://www.c-span.org/video/?327052-1/hillary-clinton-economic-policy-address

Many of Hillary's plans include SOCIAL JUSTICE:
Transparency of salaries for women, profit sharing, family leave, valuing social service, empowering unions, citizenship for immigrants, Buffet Rule. That is a difference between Hillary and Bernie - but she also has a plan consistent with real international economic understanding and principles!

[Thinkingabout]

1. Adding.02% to income tax is not going to hit the top wealth because theirs is capital gains,

Dividends and royalties, it is not included in the wages and tips in which this tax will be paid so he is missing on taxing the rich but all who earn wages, us. He is for giving lots of programs away without a means to pay for them.

[Sancho]

2. Forbes and other magazines have already posted "tax dodges" for Bernie's plans...

whether raising the SS cap, or an FTT tax, or even a capital gains tax. There are too many ways to avoid taxes. If you have profit sharing with employees, it's a start to equality but not the whole picture.

[Thinkingabout]

3. True, I have participated in profit sharing before, a very good to share the profits with those who

Work to make the profits.

[George II]

6. STOP being so logical and pragmatic!!

That is what is so totally inane and narrow-minded to consider increasing a "payroll" tax, which hurts the lower and middle classes and protects the rich.

Many consider any payroll tax as a regressive tax - imagine a self-proclaimed "progressive" proposing an increase of a regressive tax?

Our candidate certainly would never consider doing that - Clinton is FOR helping the lower and middle classes.

[Historic NY]

4. You can't just run on the Robin Hood plan like he wants to.

[Sancho]

19. The Robin Hood tax will harm many public employee and union retirements...

we've analyzed the FTTs. Most state employees and many union retirement funds are traded just like private securities. They would pay this tax. Over years of transactions, it would reduce the payout for hard-working folks.

Most millionaires and billionaires would figure out ways to avoid the tax anyway.

[Tommy2Tone]

5. Bernie is full of ideas but....

the real issue is I don't see any of them becoming law. Hillary will work within the system, like Obama, to enact programs and change policy. Real change can only come when we Dems start voting in off years and take back the House and Senate. It that doesn't happen I know Hillary can hold the line and appoint good Supreme Court judges.

[George II]

7. I was up in Boston this afternoon and apparently he had an appearance in NH....

....and on the local radio they played excerpts of what he said.

He talked about "xxxxxx is happening, and we have to do something about that", then "yyyyy is going on, we have to do something about that". He keeps saying "WE* have to do something about this, that, and the other", but he never says WHAT we have to do or how he'll do it.

* "WE" - he's been in the Congress for 25+ years, why hasn't HE done anything about this, that. and the other.

Clinton, on the other hand, HAS said what has to be done and how she plans on doing it. And if the relative congressional ensorsements are any indication, Sanders isn't going to get much done with only two supporters in Congress, whereas Clinton with at least 150 supporters already will get MUCH more help in getting her plans passed.

[Mark Grable]

8. Exerpts of what he said?

I can imagine.

If you had gone to NH, and listened to Bernie Sanders unedited, you would be able to argue why what he says that he will do, won't work.

He does say that since education is more important than the military industrial complex, spending cuts in the later will be used for the former. There is more than one benefit to this policy. It decentralises wealth. It reduces wasteful uses of precious resources. it increases the velocity of money in the system. Educated people make better choices across the board.

Most importantly, young people could afford things, like, a life.

Infrastructure repair, you know, potholes in the roads, and bridge repair. Big Money to fix stuff and make new stuff for you know, us little people. How to pay for that? A one penny user fee for each dollar traded in the markets protected by the Federal Government. That would do all the above, and build local clinics and fund single payer healthcare. And it would make mechanised trading go away, which would improve the markets. Employers could hire more people, because they wouldn't ever think about healthcare insurance again. And it would create a ton of real jobs, for everyone, degree or no degree.

I could go on, he's been saying the same for years, check out C-SPAN,

Republicans in Vermont have voted for the man for decades, and most R's would not vote for H.

[Mark Grable]

9. And oh yea,

Climate change is the greatest threat to national security - read the Joint Operating Environment 2010, written by the US military. We need to stop giving money to Big Oil, and get on with renewable energy, by giving those subsidies to small companies.

You can break up the big banks just by passing Glass-Segall back into law.

[Cha]

10. This is Hillary's Group. You have the whole rest of the board

to campaign for BS.

Hillary is who we want for President!

[George II]

11. "Republicans in Vermont have voted for the man for decades" - says enough for me!

[Zing Zing Zingbah]

12. Republicans in Vermont are not like republicans in the rest of the country

I don't think that means a whole lot on the national scene.

[Tommy2Tone]

14. Exactly

Only in Bernie's dream do I see the GOP lining up behind Bernie. It is also highly likely with him as the party candidate that we get whiped out in the election. The stakes are too high to take a chance. Hillary is the only Democrat that can beat the GOP candidate.

[Tommy2Tone]

13. No arguing he has some great idead

but...the but is I have yet to hear him explain how he is going to make any of his ideas happen? You have to makes things happen as president. So far all I have heard from him is his bucket list.

[SunSeeker]

15. "With international banking available, breaking up US banks is meaningless."

That's it in a nutsell. By breaking up our domestuc banks, all you would be doing is helping the foreign competitors of our domestic banks. Bernie's argument may have made sense in Eugene Debbs' day, but not now. Kinda shows he is either stuck in a time warp or doesn't know what he is talking about.

[Sancho]

17. Listen carefully to Hillary's plan...

she mentions regulations including working with international partners. She plans on getting the Europeans and Islands and Asians to agree on ways to prevent manipulation of money and investments. That's what brought down Iceland's and Greece's banks - including US banks involvement. The EU knows it. Their governments are also frustrated by money manipulations and companies hiding from taxes.

Many repubs don't want international regulation, and Bernie has never mentioned it is a problem. Hillary includes it in her economic plan. Overall, her plan is by far the best of any candidate from any party.

[SunSeeker]

18. I agree. nt

[Gothmog]

16. Great post