While I was out for breakfast over the weekend and had to wait in a rather long line. The group in front of us, a family of four with two college age kids, were discussing politics. I had to inject one thing into their conversation to correct their limited understanding; Bernie Sanders is not bad for the economy, he is great for it.
Case in point, as I made to them; Asher Edelman endorses Bernie Sanders for President. Who is Edelman? He is the real life Gordon Gekko that the movie Wall Street was based upon and one of the more successful people you will find on the real Wall Street.
Edelman says, “Well, I think it’s quite simple,” he began. “If you look at something called ‘velocity of money’—you guys know what that is, I presume—that means how much gets spent and turns around. When you have the top one percent getting money, they spend five, 10 percent of what they earn. When you have the lower end of the economy getting money, they spend 100, or 110 percent of what they earn. As you’ve had a transfer of wealth to the top, and a transfer of income to the top, you have a shrinking consumer base, basically, and you have a shrinking velocity of money. Bernie is the only person out there who I think is talking at all about both fiscal stimulation and banking rules that will get the banks to begin to generate lending again as opposed to speculation. So from an economic point of view, it’s straightforward.”
He said this on the financial program Fast Money on CNBC (view video) Edelman responded immediately when asked who he thought the best candidate for the economy would be. “Bernie Sanders,” Edelman said, without missing a beat. “No question.”
One of the most successful Wall Streeters ever endorsed Bernie Sanders for President. This is a big thing. Edelman is everything Trump keeps telling us he is; though Edelman is far more successful and worth so much more money then Trump. Slight difference there.
On the issue of minimum wage; $15/hr is not an economy killer either. More money, more velocity, better for everyone. There will not be mass unemployment or stagnation as so many believe. There are examples of course in places like Seattle, America’s fastest growing city in economic terms. The champion for Seattle’s $15 minimum wage? Billionaire and 1%’er Nick Hanauer. He outlined his argument for $15 in multiple forums and media, but one of the best is his opinion piece at CNBC.
Nick Hanauer states, “When workers have more money, businesses have more customers; and when businesses have more customers, they hire more workers.” Velocity of money explained in even more simple terms.
“The problem is runaway economic inequality eventually won’t work out for anyone.” Nick continues to say. Is that where we are today? I think so and so do so many others. From 1997 to 2015 I primarily lived outside the U.S. and the most disturbing thing I find on my return is that things cost more yet the wages are still circa 1997.
So two 1%’ers that support Bernie Sanders. There are more, but these guys are the problem and they will tell you so. They all want the same thing: An America that is doing well for everyone.
“The most insidious part of trickle down economics isn’t that if the rich get richer, that’s good for the economy. It is that if the poor get richer, that will be bad.” – Nick Hanauer
Asher Edelman: https://en.wikipedia.org/wiki/Asher_Edelman
Nick Hanauer: http://www.nickhanauer.com/
Bernie Sanders: https://berniesanders.com/issues/
Velocity of Money: http://www.investopedia.com/terms/v/velocity.asp