osewalrus (osewalrus) wrote,
osewalrus
osewalrus

Cable realizes that poverty is bad for business

The cable industry just realized that as an increasingly large number of people have less disposable income, they drop their cable subscriptions. Perhaps they will refund some of those monopoly rents?
http://www.snl.com/InteractiveX/article.aspx?CDID=A-12910195-11319&KPLT=2

I have been saying for a long time, "every foreclosure is a chord cutting."

Cable, of course, is just the bleeding edge of a wider problem. Wealth disparity shrinks GDP. It does not create jobs. The supply side idea that increasing wealth for the wealthy to increase investment fails on three fronts. First, the ability to raise capital has not generally been a drag on economic expansion. Second, the biggest investors in the last 30 years for common stock have been 401(k) plans and other institutional investors who hold their money for middle class people. Eliminate their 401(k) and pension contributions and the available investment capital declines. Third, concentrating wealth concentrates purchase power. There are only so many cable subscriptions any individual can have.
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