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Income inequality

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Damian posted on Mon, Oct 20 2008 4:12 PM

I recently heard a quote from the Fed Chairman in FDR's time(I forget his name now) claiming that one of the reasons for the Great Depression was income inequality. He likened it to a poker game in which a few players start accumulating most of the chips and the other players have to borrow to stay in the game. Eventually the credit runs dry(just like in current events) and the whole system collapses. Is any of this true? 

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Answered (Verified) Arvin replied on Mon, Oct 20 2008 7:51 PM
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No, because in poker you win chips from other people, in trade you benefit other people and they benefit you, both creating new chips (wealth).

So that explanation is just kindergarden silly.

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Bogart replied on Wed, Oct 22 2008 10:07 AM

3 is completely correct.  The Federal Government passed  the National Labor Relations Act in 1935 giving unions more power than they should have had.  The result was predictable as companies began to shed workers and go out of business instead of being at the whims of labor.  It was so bad that the government run exclusively by Democrats passed the Taft-Hartley Act reducing several of the powers given in the NLRA.

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