INCOME REDISTRIBUTION? FIRST END INCOME MONOPOLY

INCOME REDISTRIBUTION? FIRST END INCOME MONOPOLY

The wealthy in America are jumping behind their latest mascot, Joe the Plumber (as if his interest is at their heart), crying foul that Democrats are seeking to tax their hard “accumulated” money and give it to the working class, the source of their profit. This Robin Hood defense skims over the fact pointed out by Robert Reich, former Secretary of Commerce, that since 1980, they have gone from possessing 8% of the total wealth to 20%, while the working class has had their salaries stagnate due to the global competition and threats of outsourcing.

In actuality the working class is questioning how the wealthy got their earnings. O’Reilly bemoans taking “his money” but little is mentioned about working people losing health coverage or the victimization of minimum wage earners working for below poverty wages. We are disturbed with unchecked CEO pay to the ignorance of stockholders. Such is the case with Richard Fuld, CEO of Lehman Brothers, who was on the very same compensation committee that did his hiring and created his contract. Collusion by like kinds?

The wealthy scoff at the notion that paying taxes, or making an additional sacrifice to this country by paying slightly more, as Patriotic. It seems military service and risking one’s life and blood is the only form of sacrifice, but their ilk isn’t doing that either. It’s a win-win; enjoy your money while others do the fighting for you. Their sacrifice is limited to flag lapels and rhetoric, or the canard of capital infusion which that have a personal gain, while McCain talks of “walking the walk.”

The nature of capitalism dictates money makes money, and the “haves” possess the upper hand. Capitalism is like a crap game, where wealthy players risk more, bit have more exposure to winning on every role, while the budget conscience can only contribute a little to risk, and have smaller returns. It is the “rich get richer, poor get poorer” theorem where the wealthy watch their nest eggs grow multiple times faster than those scrimping to save.

The working class is losing defined pension plans while contributing more towards health premiums as employers continue to divest of these previously paid obligations. Our economy is now based on wealth not work, as the working class relies on old money to survive, many times at the expense of their children. We have not only rich versus poor, but generations pitted against one another.

While being the best form of economics, Capitalism is not perfect and needs to be regulated. We eliminated monopolies which inhibited competition and marketplace rules, to the behest of business which approves of unfairness when it benefits them.

The irony is ignorance of working class plight will lead to a boycott by default due to loss of disposable income and consumer confidence, which will eventually discomfort the wealthy. This is the reason for stimulus packages as trivial as their effect. Not keeping enough money in the hands of those who need to spend will have a boomerang effect. Only when Mr. O’Reilly can no longer sell his product will he realize whose money he does have.

If we restored Clinton era taxes I doubt the wealthy will go into austerity mode. Our budget was balanced, the economy was humming and our dollar was worth a dollar. Like the luxury tax during Bush Sr.’s tenure, no wealthy person is going to start brown bagging lunch, or accept “no” as an outcome because there is a 10% surcharge on purchases. Donald Trump will not say no to the purchase of a new Yacht because the adjusted sales price is 10% higher.

And what is McCain suggesting for us “Joe the Plumber types?” An extension of the Bush tax cuts that have widened the divide in classes, more tax cuts for Big Business and further divestiture of employer paid benefits like health care and pensions which create an additional cost for us average Joe’s. Let’s not forget that had our Social Security been backed by the stock market, something supported by McCain, we average folk would be experiencing a Depression now.

Here’s an alternative theory perhaps the wealthy could understand – it’s the working class’ turn, of which the unlicensed “Joe the Plumber” is still one, and would stay that way under McCain.

David DiBello