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How did the Federal Government operate prior to 1913?
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Feb 21, 2024 09:30:54   #
pendennis
 
dwmoar wrote:
Some of the first words in the constitution say

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare


Those words are in the preamble, which only summarizes the broad purpose of a document. The actual articles, sections, and amendments are what define the constitution. And so far, no one has defined "general welfare". The term is very nebulous at best, nonsensical at worst. Based on philosophical individualism, there is no "general welfare". What's good for you doesn't mean that's good for me.

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Feb 21, 2024 10:28:21   #
SteveR Loc: Michigan
 
cbabcock wrote:
Money in the stock market is, for the most part, simply parked there. It produces nothing. It doesn't belong to the company, it is the way those with money trade ownership with each other. The company doesn't get that money to invest in new stuff or employees or CEOs. Only when the company sells new stock, or sells treasury shares, or uses earnings or borrows does that company have new money to invest.
When, as you say, an investor actually starts something new, or buys and puts money into an existing venture, that investor is actually pumping money into the economy.
Yet today most of the financial "news" is whether stock prices are up or down, and for every dollar used to buy stock at a higher price, the seller takes his money out. Real financial news would report whether wages are up or down, prices are up or down, production is up or down.
Money in the stock market is, for the most part, s... (show quote)


Money is not exactly "parked there." Each stockholder is an individual owner of the companies in which he or she owns stock. They have a voice in the running of the company at stockholder meetings. If they don't attend they can vote by proxy. As part owners, no matter how miniscule a percentage that might be, how well they do depends on the performance of the company. Dividends may be paid or some companies, like Amazon, pour earnings back into the growth of the company. This added value to the company, in turn, adds value to individual stocks. It's the same as if you owned your own business. All your equity would be tied up in the business and you'd have to live off the profits. Same with stocks. You would also hope that, perhaps, over time, the business would grow in value and when it came time to retire you could sell it for a nice profit. Same as stocks.

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