Redistribution of Wealth and the Tier V Unemployment Extension

[Joanne98]

It seems that, with every mention of the Tier 5 unemployment extension in blogs or on TV, someone from the right comes in and makes some sweeping generalization about Tier V being a ‘handout’ or a ‘redistribution of wealth’. It’s time someone takes a hard look at the basic economic facts of this great country.

First, redistribution of money is not the same thing as redistribution of wealth — there is no mechanism in the entire country that gives wealth to the poor. Second, the entire economy is built on a massive set of reverse-Robin Hood precepts that continuously takes from the poor and gives to the rich — and Tier 5 won’t even start to offset the systemic issues in play in America.

Redistribution of Wealth

Wealth is not the same thing as money. Wealth, by any economist’s definition, is essentially the ability to create money. If you have investments, stocks, bonds, real estate, tax lien certificates, or any other financial instrument that pays you for having spent money in the past, you have wealth. Every day that goes by makes you richer.

If, like 90% of Americans, you have car payments, house payments (or rent), credit card bills, or any other amount of debt that has an attached interest rate, you have liability. Every day that goes by makes you poorer — and it makes the banks, credit card companies, and other firms richer.

There is absolutely nothing happening anywhere in America to bring wealth to people that don’t already have money. The Tier 5 unemployment extension isn’t going to make anyone in America wealthy — but it’s also not going to make anyone in America any less wealthy, either. Tier V doesn’t transfer wealth — it transfers money. Money that, right now, the wealthy simply aren’t spending to improve the economy — but we poor folk will.

http://all247news.com/redistribution-of-wealth-and-the-tier-v-unemployment-extension-2/3925/