I have nothing against the super rich. I've broken bread with multiple men worth more than 100 million and one billionaire who made more than 11 billion in a single deal. They earned their money and I applaud them. But there is a terrible trend that is happening. We have developed a class of the super rich at the expense of the middle class. The idea that it trickles down is a fallacy and it can be shown through data. The truth is that much of this money is used to create more super rich people widening the gap between the haves and have nots.
The landscape for the middle class began to change during Regan. In 1980, the first year of Regan, the top tax rate was 70%. By the time he left it was down to 38.5%. If you go back to 1963 you'll see that the top tax rate was 91%.Source
Did this tax rate prevent people from becoming wealthy? Rhetorical of course. That trend continued until Bush who got the rate down to 28%. Did that make the middle class wealthy? No. As a country we have less money in the bank than many other first world countries. We are #28
in personal savings compared to countries with higher tax rates. So lowering tax rates haven't given us more money in our pockets.
What did lowering the tax rates do for personal income for the average? Chart
Here is what I take away from this chart. Between 1950 and 1970, personal income in 2004 dollars rose by 47%. Between 1980 and 2000 that number rose by a paltry 12%. and it dropped between 2000 and 2004. What changed? Union Membership declined
from 24% to 13% during that same time. Union Busting was one thing Regan was known for. You can see what the results are from the stats in this paragraph.
So what's wrong with being super wealthy? Aren't they good for society? They create the private plane industry, yachts, estate managers, etc. These are precisely the problems. There is a finite amount of money. If there is a group taking and hording the pile, there is less to spread out for education, income for the middle class. If you can simply invest it worldwide, the money isn't spent manufacturing products here, it goes to companies that are cutting our financial throats outsourcing jobs in manufacturing and service to the lowest bidder. Picture the Waltons with a net wealth of approximately 80 billion dollars. What do they produce? How many jobs do they provide that you can raise a family on? How many 30 million dollar jets do they have where that money could be put to use creating jobs. Estates? Art? Cars? Yachts? etc etc. and the rate of the transfer can't be ignored either.
The super rich see a 16% growth and pay us .6% less. That's Laissez Faire at it's best.
It doesn't take a rocket scientist to see where this is going. There are many uninformed people out there ignoring the sign posts. There is even a guy here that speaks of morality with a straight face and how we need less government. How long will the Tea Party march with signs and then go back to their two jobs to make just enough? How long will they be the pawns of the super rich like Murdoch? Only a fool wouldn't see what is happening. If you are a tea partier or a Fox News supporter buying the rhetoric, what would it take for you to see the big picture? You are a group with foot on the floor driving toward the cliff chanting about how great you are. Reminds me of the O'Doyles
and you don't want to end up like them do you?