Forum Post: To try and blame a minority for their success and other’s failures is not only a fallacy, but a disservice to the history of American exceptionalism.
Posted 12 years ago on Nov. 1, 2011, 1:08 p.m. EST by fows
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I. In September of 2011, organized groups and individuals began to stage sit-in protest at the financial district of New York City. Under the banner of “Occupy Wall Street”, these protesters have railed against what they view as the excesses of financial and lending institutions. Many of these individuals refer to themselves as “The 99%”; compared with the wealthiest 1% of Americans who possess 50% of the countries wealth and assets. However, while it may be convenient to blame the wealth in this country for the plight of low income Americans and those negatively affected by the current U.S. economic crisis; in doing so, the country risk weakening its capitalistic traditions and discouraging initiative and success.
A. Wealth distribution in the United States is primarily found in entitlement programs and government spending, both of which are supported primarily by the tax dollars of high income Americans.
II. Much of the United States government is funded by wealthy taxpayers, such as: public education, entitlement programs, the military, transportation, and infrastructure (Thornton, 2011).
A. According to IRS data from 2008: the top one percent of income earners pays 38 percent of all income taxes; the top ten percent of earners pays 70 percent; the bottom 50 percent of earners only pays three percent (Thornton, 2011).
B. Wealthier Americans take a large portion of the tax burden off of the lower incomes (Thornton, 2011).
C. High tax rates on the high income individuals create a fair and productive form of wealth distribution (Thornton, 2011).
God damn it. You die hard winner take all bloodthirsty capitalists and filthy rich pigs absolutely refuse to understand the following: First, that record high charges in health care, energy, and finance also mean record high profits and record high dividends. 40% of which are paid to the richest one percent. This causes more hardship and more concentration of wealth. At the same time, more financial aid in the form of welfare, Medicare, and Medicaid becomes necessary. Especially with those record high charges and profits. As even more wealth is concentrated, the lower majority go into debt and lose their relative buying power. This results in less demand, layoffs, and higher unemployment. This results in even more legitimate need for financial aid, a slower economy, less revenue, and higher national debt. It's a downward cycle tied directly to the relentless concentration of wealth.
I'm not making excuses for those who sit on the couch, make no attempt to find work, and sponge off the government. I'm not calling for a welfare state. But God damn it. You die hard conservatives and filthy rich pigs need to stop being such cowards, open your god damn eyes, and finally admit that there is a downside as more and more wealth becomes concentrated.
The richest one percent now own 40 percent of all United States wealth. This is true even after you account for all taxes, charity, and financial aid.
Mark my words: this equation will get worse.
THERE IS A DOWNSIDE AS YOU GET RICHER AND RICHER!
A word for my critics: I'm no expert but I'm no fool. I predicted this socio-economic crisis in writing 6 years ago. I'm aware of all the conservative and liberal talking points. Of course, I hate politicians. But I don't hate liberals or conservatives. I agree with both on some issues. For example: I agree that we need an adequate safety net for those in need. Not for those who sit on the couch and watch TV.I agree with tax cuts for small business. But not for Wall Street and not for those making $500,000 and up. A heavy concentration of wealth is what got us here. A gradual and partial redistribution of wealth is vital.
I don't want socialism, communism, or marxism. I want modest capitalism. A reasonable scale of income opportunity for all those willing and able to work. An adequate safety net for those in need.
A word for the rich: I have received quite a bit of negative feedback from you one percent club pigs. I must be doing something right. After all, you took time away from your money bath just for me. You might want to check your ass crack for soggy bills. In the meantime, let me just say this for the record:
You can't intimidate me. You can't embarrass me. You can't make me feel uneducated, unintelligent, or otherwise insignificant. You can't confuse me. You can't divert my attention. You can't exhaust me and you sure as hell can't break my will. I know I'm getting to you because you're here with another lame psychological trick. You're here in an attempt to shut me up. It won't work. I've had it with all of you.
I won't break any laws. I would never discredit the cause with a criminal act. But I'm telling you right now that I'm virtually impossible to stop. It's a big world and I have a lot to say. If you want to break my will, you're going to have to break my neck first.
If you pull a stunt like that, a lot of people will know what happened to me and why.
Now get out of my face. I have work to do.
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A. . "It's become a moral issue rather than just an economic one. The explosion of the debt bubble and the excesses of Wall Street hurt most Americans terribly," suggests Richard Reich; former Labor Secretary and economic professor (Bruder, 2011).”
B. "Rarely before in American history has the public seen so blatantly how the predations of a very rich and powerful minority at the top can hurt so many." Americans see the U.S. government bailing out financial institutions, but at the same time they see their neighbors losing both jobs and homes (Bruder, 2011). C. Clearly in the years directly before the financial crisis of 2008, many lending institutions made poor decisions; with greed being one of the factors that were at play (Bruder, 2011). VI. When the wealthiest in America are being vilified simply for being wealthiest, it creates a dangerous precedent (Bruder, 2011). A. In response to a proposed 2% income tax on the wealthy in 1894, Sen. John Sherman said, "In a republic like ours, where all men are equal, this attempt to array the rich against the poor or the poor against the rich is socialism, communism, and devilism (Bruder, 2011).” B. In both the Russian Revolution and Nazi Germany, the wealthy and successful were made scapegoats to poor economies (Bruder, 2011). C. If America is to remain a strong capitalistic society, its people must not turn against its most successful citizens (Bruder, 2011). VII. Conclusion A. As we have seen, much of the wealth that the richest 1% of this country possesses is returned society through high tax rates. This helps lower income individuals and families by: reducing the taxes they are required to pay; enabling federal and state governments to provide essential services to the public; funding entitlement programs such as, Medicaid and Social Security. America is famous for the hard work, ingenuity, and success of its citizens, but clearly not all individuals can find success at all times. Nevertheless, to try and blame a minority for their success and other’s failure is not only a fallacy, but disservice to the history of American exceptionalism.
III. Demanding that the wealthiest individuals relinquish their income through excessively higher tax rates or socialist policies; go against capitalistic philosophy and most American traditions (Miron, 2011). A. “Focusing on the super-rich also fosters a counterproductive attitude toward material success. The way to promote a hard-working, entrepreneurial and innovative society is to celebrate great wealth so long as it has been earned by legitimate means (Miron, 2011).” B. If successful individuals were required to give up larger portions of their wealth, there would be less incentive to strive for success. Unlike socialism, capitalism can reward risk and ingenuity with monetary success (Miron, 2011). IV. The wealthiest 1% of Americans is not a secret cabal, headquartered in the buildings of Wall Street, but a myriad group of individuals with various occupations (Gilson, 2011). A. The Largest group is composed of executives, managers, and supervisors in non-financial businesses (31%) (Gilson, 2011). B. Next is, medical (15.7%) and financial (13.9%) professionals and lawyers (8.4%) The remaining 39.4% of occupations include: blue collar, real estate, scientist, farmers, ranchers, celebrities and entrepreneurs (Gilson, 2011). C. These individuals have not become successful because of any combined effort. There is no conspiracy when it comes to the identity or motives of the wealthiest 1% Americans (Gilson, 2011). V. However, there are those who vehemently adhere to the belief that the wealth disparity in America is severe and specific in its blame (Bruder, 2011).
The most profitable industries in the world (energy, healthcare, finance) have been given billions in government handouts and tax breaks. Meanwhile, they keep raising charges causing hardship for millions. With all those massive handouts, tax breaks, and obscene charges, profits rise to record high levels. Millions in bonuses are paid to the executives. With record high profits, record high dividends are paid. 40% of all dividends in the United States are paid to the richest one percent. All of this causes a gradual concentration of wealth and income. This results in a net loss for the lower majority who find it more and more difficult to cover the record high cost of living, which again, is directly proportional to record high profits for the rich. As more and more people struggle to make ends meet, more and more financial aid becomes necessary. Most of which goes right back to the health care industry through Medicare, Medicaid, and a very expensive prescription drug plan. This increases government spending. This has been happening for 30 years now. During the same time, tax rates have been lowered drastically for the richest one percent. Especially those who profit from investments. These people pay only 15 percent on capital gains income. As even more wealth concentrates, the lower majority find it more difficult to sustain there share of the consumer driven economy. Demand drops as more and more people go broke. Layoffs results. Unemployment rises. This results in less revenue and more government debt.
Massive subsidies and tax breaks for Wall Street, massive tax breaks for the super rich, heavy concentration of wealth, record high charges along with record high profits and record high cost of living, more hardship for the lower majority, more government spending in the form of financial aid to compensate, more concentration of wealth, less demand, layoffs and unemployment. All of this results in slower economy and less tax revenue. At the same time more and more financial aid becomes necessary. It's a horrible downward cycle which gradually pushes the national debt higher and higher.
The other big factors are the wars in the Middle East.
This post is not intended to excuse those who sit on the couch collecting welfare, make no attempt to find work, or squease out kids they can't provide for.