It’s a naïve world view based on a lacking understanding of how society changes
Or they dislike how things have changed. Like the Ron Paul types who think medical costs, housing bubbles, university prices, etc… are due to government interference and control of the money supply. Theres a lot of believers in austrian economics as well, and they arent unsympathetic to the poor, they just believe the good things in society are due to technological progress and overwhelmingly more bad things due to government involvement.
Which isnt illogical or crazy, its very probable. Its also very probably we need more government intervention. In the end there are far too many variables to be definitive, and our economy isnt flexible enough to even change, as every tweak rewards one group and punishes another. Which I think is why we have bailouts after every recession, attempting to quell changes to the status quo and existing wealth distribution, which then leads to further moral hazard.
I’d also say many people think we can simply take money from the wealthy and distribute it with no side effects, without taking into account the velocity of money or interest rates. If you taxed the rich 90% and distributed it you’d obviously have massive inflation, rising interest rates, and people with a mortgage would default like they did during the Volcker shock. We arent on the gold standard, fiat moneys value is dynamic, the wealthy are only nominally wealthy given the current velocity of money.
Valid point. A well-documented human bias is also that we tend to think everything was better back when we were young - all ageing post-war age groups think society worked best when they were in their 20s. It’s natural that some people bass their political belief on this sense of nostalgia.
Or they dislike how things have changed. Like the Ron Paul types who think medical costs, housing bubbles, university prices, etc… are due to government interference and control of the money supply. Theres a lot of believers in austrian economics as well, and they arent unsympathetic to the poor, they just believe the good things in society are due to technological progress and overwhelmingly more bad things due to government involvement.
Which isnt illogical or crazy, its very probable. Its also very probably we need more government intervention. In the end there are far too many variables to be definitive, and our economy isnt flexible enough to even change, as every tweak rewards one group and punishes another. Which I think is why we have bailouts after every recession, attempting to quell changes to the status quo and existing wealth distribution, which then leads to further moral hazard.
I’d also say many people think we can simply take money from the wealthy and distribute it with no side effects, without taking into account the velocity of money or interest rates. If you taxed the rich 90% and distributed it you’d obviously have massive inflation, rising interest rates, and people with a mortgage would default like they did during the Volcker shock. We arent on the gold standard, fiat moneys value is dynamic, the wealthy are only nominally wealthy given the current velocity of money.
Valid point. A well-documented human bias is also that we tend to think everything was better back when we were young - all ageing post-war age groups think society worked best when they were in their 20s. It’s natural that some people bass their political belief on this sense of nostalgia.