The real reason why the rich see America’s problems differently

[Joanne98]

Are the rich just like us? In one sense they are – they eat, sleep and defecate just like everyone else. They love, cry and die – just like everyone else. But when you’re dealing with policy – no, they aren’t just like everyone else. It’s fashionable (one of those evergreen fashions) to argue that the policies that benefit the rich, benefit everyone. There are certainly policies that benefit everyone, but there are few policies which primarily benefit the rich which are to everyone’s interest. Let’s run through this in a bit more detail.

Rich
Most rich people get most of their money from investments – also known as unearned income. So when investment income is taxed at a lower rate than earned income (what you get on your paycheck), which it is – then those who rely primarily on earned income are being taxed at a higher effective rate. This is a deliberate policy choice.

When jobs are outsourced, the profits still flow back into the hands of US investors. While many people own stock and bonds (especially through pension funds) this disproportionately benefits the rich because the rich (as noted above) disproportionately receive their money from unearned income.

When the domestic economy does badly, but corporate and general investment profits are up – the rich do fine because the cost of things they want (like servants) goes down as supply goes up. Those few people they do deign to employ cost less.

When tax changes are made that are less progressive (moving to fees or flat taxes, for example, and away from income tax) it benefits the rich – because they earn more money and regressive taxes benefit those with more.

When asset appreciation is only taxed at death it benefits the rich, because much of their net wealth is only taxed when they die.

When estate taxes are gotten rid of – it benefits the rich (or rather their children).

When public schools are defunded it benefits the rich. Their kids aren’t going to them anyway, and now they don’t have to pay for your kids to go there.

When capital flow laws are relaxed it benefits the rich. Do you need to move a million dollars out of China in a few minutes to get an extra .1% overnight return? No?

When the spread between inflation rates and the interest rate is high it benefits the rich, because most of them are creditors. It hurts the middle class and the poor – because they are debtors.

When bankruptcy laws are tightened it hurts the poor and the middle class and helps the rich.

The Middle Class...Continued>>>
http://firedoglake.com/2008/02/23/the-real-reason-why-the-rich-see-americas-problems-differently-than-you-and-i/

[hobbit709]

1. This Non-Sequitur today sums it up

[annabanana]

4. On point for sure.. . . . k&r. . . . .n/t

[Joanne98]

6. Good one!

[Jackpine Radical]

2. Why does everyone hate the rich? The poor owe their very existence to the rich!

That is to say, if there were no very rich people, there would be no very poor people.

[lostnotforgotten]

3. If The Poor Are Taxed Too Little And The Rich Are Taxed Too Much

Why then are the rich getting richer?

[Jackpine Radical]

5. That is the natural process by which

more poor are created.

[Doctor_J]

7. And let it be said - the poor serve an invaluable function

without the underclass, who would we revile, scapegoat, and blame all of our problems on? Who would do filthy, barely-human jobs that don't come close to paying their bills? If not for poor people, what would hate radio talk about all day?

[Jackpine Radical]

8. I'm glad SOMEBODY around here is awake this morning.

Although it is sometimes amusing to see how far I can get my one-liners to sail before somebody catches them.

[Wizard777]

13. Yeah the purpose of the poor is to scare the hell out of the middle class.

It keeps them showing up for work and competing with the Jones' when they get home.

[lonestarnot]

11. Because the top 1% really need to own 60% of the nations wealth or appearances just wouldn't look

RIGHT! Bourgeois/poletariat you know. The poletariat doesn't need to dress in haute courte for dumpster diving old food.

[raccoon]

14. And what's wrong with that? nt

[The Backlash Cometh]

9. Very nice list. I would add one more.

They have networks that circumvent the system or laws that we all have to abide by. Therefore, they can sit up on their high perches and tell the rest of us to suck it up, when the reality is, that they have access to the people that can make their lives more comfortable.

[lumberjack_jeff]

10. I did my taxes on Friday.

Strangely we had exactly the same total income in 2006 as 2007 - to the dollar. The only difference between this year and last is how the income was composed.

Although my wife had essentially the same income both years (give or take a couple hundred dollars), last year my income, about 1/4 of the total, was entirely capital gains. This year it was self-employment.

The difference in tax was dramatic. I paid $3000 more in tax because I worked. Working is for suckas.

[badgerpup]

12. I'm thinking about biology, and about how the wealthiest are like parasites.

After a while, the parasite kills its host...which (to my way of thinking at least) is counterproductive.

Parasites also tend to lose the ability to fend for themselves once separated from their host...
this often includes being able to even move themselves from one place to another.

They become totally dependent upon their host for EVERYTHING...and then the ungrateful bastards go and kill it.

Just thinking and wandering off on a tangent. I do that, you know. :shrug:

[EstimatedProphet]

15. Not exactly

I did my doctorate in Parasitology. Most of the successful parasites never kill their host, and a lot of them hardly even weaken them. the ones that do kill their host are either a)trying to move to another host for a different part of thier life cycle, or b) really bad at being parasites. I'd say the rich fall into the second group...

[Jackpine Radical]

16. Not enough evolutionary history to get it right.

The poor may have always been with us, but the3 rich have not. I think class structures came in more-or-less with agriculture. Hunter-gatherers didn't tend to get into that nonsense.

[badgerpup]

17. Thank you, I stand corrected.

Just knew enough to know they sure as hell aren't symbiotes...

A symbiotic relationship involves both critters benefiting from the interaction.