Wealth Redistribution & Economic Warfare: Let’s get real.
I am appalled by the level of stupidity coming from both Washington and Main Street rationalizing that if the top 1% of income generating people out there had less, then the remaining 99% would be better off….How far this is from the truth.
Frankly, I believe making the 1% suddenly poorer does not make the 99% suddenly richer. In fact, it just creates an environment that will make the 99% poorer.
This isn’t ancient times where the obscenely rich lord keeps a cellar full of gold while his vassals starve. The wealth of today’s rich is constantly working in the economy.
If they put it in a bank, that provides capital that the bank can use to provide mortgage, car, and student loans to the 99% and hence improves their lot.
If they invest it in the stock market, that provides capital that the company can use to expand its operations and hire more of the 99% and improves the value of the stocks that fund the retirements of anyone with a job pension, 401K, or IRA.
If they spend it on purchasing items, that provides capital to the retailers, distributors, and manufacturers that provide the 99% with their jobs.
It is a fact that the increased productivity of the 1% due to changes in technology and other factors has by and large not come at the expense of the 99%. Had technology not changed, the 1% would have earned less but the 99% would not have earned more.
If the 1% simply had less, the 99% would be significantly worse off. Destroying the wealth, so there would be less capital to go around and invest in business is lunacy at its best. Less capital translates to less cash flow, less employment, less business, and less competition.
If the 1% had less, the 99% would be exactly where they are today. If one cannot afford a car today, and Buffett loses all his money, one still won’t be able to afford a car tomorrow.
Redistribution of wealth may help people afford a car tomorrow, but how? Raising minimum wages from A to B? What happens to those who were already making B?
I just don’t see how taking from the 1% would make things better. To take it one step further, I believe the radical egalitarian quest can never be achieved.
Please share your thoughts.
