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Weapons of Mass Extinction

by Steve
12/17/2004 08:54:00 PM

The editorial page of USA Today published a piece entitled, "Good economic times roll for high rollers, that is", suggesting that good economic times are here, if you're a business owner.

The recovery is showing up in stock values, corporate profits and other measures at the upper end of the economic spectrum. But in data more meaningful to most Americans, things don't look so rosy. Employment has trickled up during the past year, but still stands at 400,000 fewer jobs than in 2001. Productivity gains and outsourcing mean some U.S. jobs are gone for good.
The Op/Ed piece went on to say:

Left unchecked, this type of disparity builds resentment. Until the captains of industry find ways to share more of the wealth with those in the trenches, they risk a political backlash against the policies that have made them wealthy.
The last sentence above is the most interesting.

The commentator essentially says that tax cuts and deregulation have made Americans and business owners wealthy. That is to say, if we had higher taxes, and if we had more restrictive regulations, then there wouldn't be so many wealthy people. The rich would not be as rich.

But first, let's get one thing out of the way. Anyone in the United States can choose to become wealthy. That is, even the most poorest person in the country can become wealthy beyond their belief, if they are willing to put in the effort. We've all heard the story of Arnold Schwarzenegger, who started out in America working in construction as a bricklayer, spending his free time in the gym, and saving his money to pay for bodybuilding competitions. And we've all heard many other rags-to-riches stories. Anyone can choose to become rich, if they're willing to put in the effort.

What USAToday admitted, perhaps by mistake for their own sake, is that if we didn't have such high taxes, and so many restrictive regulations, then working class Americans would be able to rise up out of the trenches and become business owners themselves. That is, the small guy American would find it easier to become self-reliant and easier to turn an idea into a business.

As long it remains difficult to become wealthy, liberals will have plenty of working-class Americans to champion. That's why liberals complain that tax cuts are unfair; it's unfair to them, not necessarily to Americans.

It's the old "Jesse Jackson" syndrome. Jackson champions the poor African Americans, but when those people are empowered to become self-sufficient, or even wealthy, they no longer need him. Hence, he opposes tax cuts. Anything that helps Americans become wealthy is a weapon threatening to make liberals extinct.

1 Comments:

  • It is entertaining to me that what is always lost in this analysis is who are these captains of industry and major shareholders who are benefiting from the increase in stock prices? The answer is, largely, such wealthy groups as the California public employee pension fund. Any person who has any money in a 401K or other pension fund should be elated with the run up in value of stocks.

    But who else benefits from these corporate fat cats' success? I guess the group that first comes to mind is the unemployed! Generally jobs lag behind the corporate profits. The reason for this is simple, you hire people when you have the money to pay them. Also, you hire people so you can make more money as your business opportunities grow. So the next piece in the puzzle is likely a nice pickup in jobs.

    But all this presupposes that the jobs picture has been bad. Since well before the Presidential election, we have heard reports of new jobs that were less than, equal to, or well in excess of economists' expectations. One month is down. The next is up. The next month both numbers for previous months are revised. The first month wasn't quite as bad. The second month wasn't quite as good. But the sum total of all the movement is that we are nearly back to where we stood on Setember 11, 2001 when we lost a million jobs in one month. That is remarkable.

    By Blogger Dave, at 7:03 AM, December 18, 2004  


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