Six years later and with no end in sight, the biological determinism bull market rages on:
With the S&P 500 at another historic high, it’s time to give thanks to the people and things that helped make it possible, as well as thanks to the greatest contributors of the economy.
But before I get to the list (and people who have read the blog can probably guess what I’m going to list), it’s time for the stupidest comment of the day, and it comes from Senator Elizabeth Warren’s Q&A at a September 17, 2014 Banking Subcommittee on Economic Policy hearing entitled, “Who is the Economy Working For? The Impact of Rising Inequality on the American Economy.” This is so insipid, I’m going to just link to the video. I’m not even going to bother imbedding this crap:
https://www.youtube.com/watch?v=Xr45zZkwLfc
At two minutes in, she states CEOs have no incentive to give profits back to workers.
Ummm..has she ever heard of something called wages? Companies that are unprofitable tend to shut down, and hence no wages and no employees.
Obviously, she is opposed to the system of capitalism we have now and would prefer if companies run on razor thin margins and forcibly relinquish all their profits to the government, with nothing for management and shareholders. This is a situation similar to Freddie Mac and Fannie May, except she wants it for all companies.
Capitalism means companies , in a free market, can decide how to appropriate their capital.
She also mentions middle class living standards have declined over the last fifteen years, completely ignoring all the new technologies that have improved our lives such as the World Wide Web, mobile phones, better treatments for diseases, cheaper energy and food relative to income, and so on. Matt Ridley, the rational optimist, is right about the world being a better place thanks to technology and free markets.
The Dow keeps making new highs because the economy is fundamentally sound, and companies flush with profits are buying back record amounts of stocks, in addition to blowout earnings, huge exports, and other examples of strong fundamentals.
Biological determinism means the best and the brightest are being reward with rising asset prices for the economic value they create, who in turn help make the market go up for being so economically invaluable. It’s a symbiotic relationship. Smart people create economic value, which makes stocks and high-end real estate go up, which makes smart people richer.
HBD is the future. It’s not just a way of life; it is life. The Silicon Valley, along with Manhattan and other insular colonies of intellectualism and capitalism, are the epicenters of America’s hyper-meritocracy. A low IQ score is a scarlet letter that dooms whoever bears it to a lifetime of mediocrity. With the world becoming more transparent and aptitude/cognitive testing playing an increasingly important role in the hiring process as companies rely less on GPAs, don’t think you will have anywhere to hide or that you will be able to BS your way to a good job with inflated, useless credentials. The low-paying service sector, such as Wallmart door greeter, cashier, and bed pan changer, are 21st century growth industries for the low-IQ population and college graduates of useless degrees – assuming such jobs don’t get fully automated.
We can only pray Warren wins the democratic nomination. It would give the GOP the easiest victory since Mondale.