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Here comes the war on income inequality!
The 2014 midterms are coming up. The Dems have twice as many US Senate seats up for election in 2014 (the Senate class of 2008 is up for re-election). With the economy still sluggish, Obamacare being a disaster, and Obama's approval ratings in #^^^^& Cheney territory, the Dems need something to rally around, something that makes the other side look monstrous.
Say hello to income inequality. How dumb does one have to be, to buy into this. No one likes the fact that there are poor people out there who struggle. But here is what most liberals cannot seem to grasp...one person's wealth does not cause another person's poverty. Wealth is not finite, it's not like a pizza. If Oprah Winfrey earns another million today, that does not mean there's a million less for the rest of us to scrounge for. The solution to income inequality isn't to drag wealthy people down. The solution is giving poor people the tools they need to climb the ladder. Our country declared 'war on poverty' 50 years ago. Since then, we have spent trillions fighting poverty, and the percentage of people living in poverty hasn't changed much. Why? Because for most poor people, their poverty isn't caused by a lack of money (the lack of money is the outcome, not the cause). Their poverty is caused by their own behavior, abilities, and priorities. You do not solve that by taking from those who have wealth. i really don't like the way this argument is framed by the left...namely, that conservatives care less about the poor than liberals. There are studies that show that conservatives donate more time and money to charity than liberals do, and when you consider how each side views religion, that makes intuitive sense. Finally, when the left talks about how unfair income inequality is, the boogeyman is ALWAYS a corporate CEO. The left never seems to care about actors or singers who are jillionaires. That tells me that wealth is OK, as long as it comes from a source that is left-leaning? It's absurd. Yet somehow, it works. |
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If Oprah makes more money because the government lowers taxes there's less revenue to provide services for the dependent. If corporations keep wages stagnant and funnel value to shareholders there's less wealth to go around for the majority to scrounge for. This is precisely the macro situation we've been experiencing a to a large degree why wealth continues to consolidate at the very top. Quote:
I think if you do some research on public opinion there will be overwhelming support for economic factors over personal ones. Quote:
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-spence |
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Not suprising. My logic is that wealth is not finite. So one oerson's wealth does not cause another person's poverty. The solution to poverty does not involve the confiscation of exorbitant assets from th wealthy. The solution to poverty is to help poor people acquire more wealth for themselves. "If Oprah makes more money because the government lowers taxes there's less revenue to provide services for the dependent" You're talking about tax revenues collected, which is not what I was referring to (which was wealth). But OK. What if she makes more money NOT because of a tax cut, but because she launches another successful business, like a TV show. In that case, has she 'stolen' that additional wealth from anyone? If anything, the tax revenue is maximized if she makes another million, compared to a million poor people each making an additional $1, because her tax rate is so high. SO if you want to maximize tax revenue, which is what you are saying, you should be happy when the uber rich get richer, as their tax rates are higher than ours. Try making that wrong! "Before the Bush 43 years the poverty rate was 1/2 what it was before the 1960's" Can you provide that data please? From what I am seeing, since 1970, the poverty rate has been between 10% and 15%. "If corporations keep wages stagnant and funnel value to shareholders there's less wealth to go around for the majority to scrounge for." You make it sound like only wealthy plutocrats own stock. Everyone who has a 401(k) or a pension, benefits when the market does well. How do you not know this? "This is precisely the macro situation we've been experiencing a to a large degree why wealth continues to consolidate at the very top." That's only true if the stock market runup since 2008 is caused by, and only by, the wage decreases taht have occurred under Obama. I thought the bull market was caused, in part, by all the free money floating around. If you force wages higher, corporations have less profit, and thus pay less in corporate taxes, correct? You don't create wealth by confiscating it from one person (or business) and giving it to someone else. The rich will almost always get richer at a faster pace than the rest of us. Why? Because it takes money to make money. They have more investable assets. Its simple math. It's not unfair, nor is it harmful. If the rich get richer, not only does that NOT hurt poor people, you could argue it helps everyone else. The rich poay higher tax rates, so the more wealth that gets taxed at their higher rates, the lower the tax burden on the rest of us. Furthermore, unless the rich put their money in their mattress, they either spend it, invest it, or put it in the bank. All of those things are good for the rest of us. How can you work in business and not know this? "if you do some research on public opinion there will be overwhelming support for economic factors over personal ones I would put it this way...your party has done a good job convincing a large segment of the population that accepting government freebies, does no harm to anyone else. Unfortunately, as you and I will see firsthand within 20 years, nothing is free. "Celebrities have always done pretty well, where the CEO to individual contributor pay gap has grown dramatically over the last 30 years" Sorry, celebrities didn't make $20 million a movie, 30 years ago. Until you show me that data, it's speculation on your part. Furthermore, the CEO of a publicly traded corporation does infinitely more good for the population than a celebrity. Large companies provide good jobs, and they provide wealth to shareholders. Celebrities, for the most part, do nothing of the sort. Very weak, even for you. CEO compensation, as you know, is tied to stock options. When stocks appreciate, that helps the CEO fatten his bottom line. It also helps everyone who owns a share of that stock, meaning it's good for an awful lot of people. |
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So what? If you cap CEO pay at some arbitrary number, and redistribute that money to the rest of the employees, what does that amount to? Here, your fellow world travelers at the Huffington Post looked at Walmart, where the ratio of CEO to average pay was the highest of any company they could find... http://www.huffingtonpost.com/2013/0...n_2978180.html The CEO made $23 million in 2012. Walmart has 1.5 million employees worldwide, according to this link..., http://www.ask.com/question/How-Many...-Wal-mart-Have So if your fellow Bolsheviks require the CEO to work for free, and we give every cent of his $23 million to the worker bees, each would see an increase of $15.33. How much help does that provide? How many people does that lift out of poverty? Is my math right here? I knew it would be insignificant, but not that insignificant. My point being, executive compensation isn't causing large numbers of people to live in poverty. CEO salary makes for a great liberal talking point, and it does a good job at making the rich seem evil, which is the whole point. In reality however, it's not a significant line item on the balance sheet, in most cases. You need another soapbox to holler from. The math doesn't support your cause here, not by a long shot. Somehow, that the math shows you how demonstrably wrong your point is, won't stop you from believing that point. And that's what I don't understand. |
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-spence |
Here's something to consider:
A CEO's image is driven by how the company does and is perceived by the public, specifically when the company has to do something unpleasant like layoff or salary reductions. Funny how a celebrity (Sports, music or movies) never get that same response. They still make their multi-millions a year regardless of how well they do when they work. Where do their salaries come from? Corporations are derived (usually) from stockholders and investors, who are expecting a return on their investment. Celebrities get theirs from the public, although they are paid by the team, movie company or the tour venue. Who has a more direct affect on the poverty of America? The clelebrities, because the public will spend money foolishly to see these people perform like circus animals instead of saving for their future betterment. The CEO and their company actually employ people which gives them a push in the right direction. People's poor choices should be addressed as major role in poverty, as should the lack of career advancement opportunities. |
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Clearly, the CEO's are not taking a meaningful amount of money away from the rank-and-file. So why demonize, or atempt to blame, the CEOs? Spence, you tell me, how much intellectual honesty is there, in demonizing the CEOs? Clearly, the CEO compensation is not to blame for anyone else's angst. Good luck making that wrong! If my statement is something a board member would make, as opposed to a community activist...maybe that's because the board member is rooted in the real world and driven by common sense, whereas the community activist is an ignorant, hysterical liar? If you were representing the employees, what possible response could you have? There are thousands of jobs at Wal-Mart that pay a comfortable wage. Instead of being so goddamn jealous of those people, how about learning from their example and doing what they did? Easy? Hell, no. Within reach for most of us? Hell, yes. The Occupy Wall Street crowd wants it given to them. It doesn't work that way. |
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The elite play by a different set of rules, that why they are demonized. Quote:
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-spence |
And about pie. I don't buy the infinite pie thing. The one physics class I had in college taught me there was a finite amount of energy in the universe.
Sure economic growth can lift all boats (not equally mind you) but the reality is that there's organic growth and the transfer of wealth. A lot of our economy, increasingly in fact, is based on transfer where wealth is not created as much as siphoned off. This is indeed a more finite equation, relative to the economic conditions at the moment. The point being, that if resources were unlimited you could potentially sustain organic growth and eliminate the pie construct. But in the real world there are constraints. If you don't have growth, or if the benefits from growth aren't shared you have an exploding pie. -spence |
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If wealth is material commodity with intrinsic value, and if there is absolutely a finite amount of material commodity, then wealth is not infinite. If the top 1% have an unequally high percent of income (money), do they actually have that percent of "wealth," or just that much more ability to buy "wealth"? And if they actually did buy that amount of "wealth," what would, or could, they do with it? They could not possibly consume or use it. Unless they could rent it, or sell it, it would go to waste and do them no good. If they were to rent or sell it, they would have to demand enough return, or they would lose monetary value. In order to get a "fair" or profitable return, the buyers would have to have adequate income to pay. In a market "economy" that would resolve itself to the advantage of both parties. In an "economy" that is more controlled than free, those who manipulate the levers of control can reap advantage over the disadvantage of others. For that to happen, there has to be a crony partnership between government and those in bed with it. When government usurps power by diminishing either partner in a market trade to the advantage of the other, whether toward oligarchic or egalitarian goals, it distorts the market and can do so to the point that it is destroyed. Manipulating (regulating) markets by favoring winners over losers, legislating pay scales creating "equality" or "inequality" will create failures which eventually must be "fixed." |
Why would anyone blame the CEOs. Their pay is only symptom of the problem. The problem is with corporate profits and greed, short term profits at any cost, decimating our economy in the long term. Just shoot every hole with a MBA that has no idea how to work for a dollar, but will kill others opportunity for profits in the near term.
Rant over |
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The Walmart CEO makes $15 per year for each employee. Whoop-dee-doo. Maybe they have different rules than the rest of us. That doesn't change this fact...if you work hard and work smartly, you will likely succeed. The existence of CEO's doesn't change that. "You completely misunderstand their motivation." They felt justified in occupying that which was not theirs. their motivation, like that of most of your ilk, is gimme gimme gimme. |
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That's maybe the most demonstrably false thing you have ever said. GDP changes, Spence. It's a lot higher now than it was in 1950, because the economy (i.e., aggregate wealth) increased over time. Good lord, I'd love to know in what capacity you work in business. "A lot of our economy, increasingly in fact, is based on transfer where wealth is not created as much as siphoned off." Siphoning off is what happens when the government confiscates wealth, which is what you support. Voluntary transactions almost always increase wealth. Wow... |
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Because it's easier than the truth. In most cases, if poor people want to know the problem, they need to look in the mirror. But one of the cornerstones of liberalism is that nothing is anyone's fault, it's always someone else's fault, preferably the fault of a white guy in a Brooks Brothers suit. |
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The CEO will spend his own money on more material things which increases $$ for other companies. Here's the difference between what a CEO creates and what a movie star like Alex Baldwin does. He get's his millions and spends it too,but doesn't give raises or employ more people. The only reason he gets paid is because of his looks,and acting which bring in more receipts to make more movie trash which is not a good influence on kids. No good creation here. Politicians know the jealousy in human nature and play it like a fiddle to the less fortunate making them question why someone else has more. In most of the cases it's because they worked harder to get where they are and earned it. |
Also..if you have a section of society that thinks it's ok to charge their life away just so they can "look" better than their friends, whose fault is that if they can't afford their rent or mortgage?
If anyone lives beyond their means, spending on things other than the basic neccessities, who do we blame when they fall behind on their rent, car payments, loans and everything else? I see way too many people spending money they don't have just to "appear" to be successful to their friends and family while they are rocketing to the poorhouse with no brakes!!! IS that the evil CEO's fault??? |
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-spence |
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At the most basic level, we get compensated for the value we add to something.
When a line of customers need to wait to place an order for fast food at the drive through and need to wait to pay because the order taker is preoccupied playing candy crush on a mobile device are they adding $15/hour in value? |
Apparently, "income inequality" is not such a big deal anymore. The ACA has actually made it desirable. It makes low income a means to more leisure and better health care. It allows one options and choice. It is liberating. The Founders had it all wrong. Instead of fighting for freedom from state coercion, they should have demanded an affordable care act.
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The Obozo plan
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This is the liberal agenda - give poor people enough to survive, but not what they need to get ahead and be self sufficient. Because once people become self sufficient...they are less likely to vote 'Democrat'. |
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Yup, the Democrats are worried more that female CEO's are not paid as much as their male counterparts than whether or not poor people make move up the ladder. Without poor people Dems have no base. Obama's Executive order to raise the minimum wage on government jobs isn't helping people that work at the Walmarts, McDonalds or Dunkin Donuts in this country. He doesn't give a rats ass about them. All he cares about is hooking up illegals anyway he can, and playing golf. He is an idiot. Posted from my iPhone/Mobile device |
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All of the available empirical evidence suggests that this does not work, and in the case of the extinction of the black family, you can make a very compelling case that these cash payments actually make things worse, by providing a financial incentive for self-destructive bahavior (unwed teemage moms qualify for more welfare than married teenage moms, so teenage moms elect not to get married). Do the liberals know this is the effect of their policies? Is it the intended effect? Or do they not bother to see the havoc they have wrought? It's like Social Security and Medicare...any honest person who took 5th grade arithmetic knows that those plans are not sustainable. Yet when Paul Ryan says that out loud, liberals make a commercial of him pushing an old lady off a cliff. Do the liberals really believe that Ryan actually wants to hurt old people and poor people? Do liberals really believe that entitlement programs are not headed for disaster? It's hard to know what they think, because when you bring these things up, they yell at you for being a racist, sexist, intolerant, anti-immigration, homophobic hate monger who is waginbg war on women. |
the bottom line is that the GOP has no balls...they proved that yesterday when voting
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We need to take the Senate and then we can break the stalemate. It will give us 2 years before Hillary and if we keep it 2016 it will force her to move to the center like her husband did. It gives us a chance to improve "income opportunity".
Chris Christie quote... Posted from my iPhone/Mobile device |
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Are we now to have faith that THIS time winning an election will bring about actual victory. Or has the constant erosion of principles occurred both by the progressive attack on them and by "our" relentless bargaining them away in order to win? Every new compromise takes us that much further away from principle, never a return in the other direction. The first compromise is presumably a shift to a middle ground. The next compromise is a shift from that middle ground, which is already distanced from first principle, to another middle ground toward that of your opposition. And it keeps going in that direction because the opposition itself, not yet fully having established its foundation, is also constantly moving in that direction toward its ultimate and still defining goal. If there were two equally defined and established political entities in opposition, the middle ground in every succeeding negotiation should ideologically remain statically in the "middle." But only the so-called "conservative" position was established and defined (in the founding), and the "progressive" position has been evolving and doing so continuously further and further away from founding principles and away from any previous middle compromises. Further, the progressive message has become appealing to more and more people with every compromise in that direction, and so more legislation that appeals to peoples' weaker angels is passed, making them more dependent and self-sufficiency less appealing. And the need for progressives to compromise dwindles. The Republicans become less "conservative," and the Democrats become more confidently "progressive." Notice how little the Democrats have actually compromised during Obama's tenure. And what little compromise they give is bargained away in the next round of negotiations such as was done with the sequester. So if another round of "compromise" by Republicans "wins" an election will that be the actual pyrrhic victory? A victory at the cost of even more of what supposedly defines "conservative"? If Republicans fear "sticking to their guns" and abandon that to win, what will make them pick up those guns and stick to them after victory? Or will they conclude that they must always avoid those guns in order to keep winning. This has already been happening and with greater acceleration of the transformation of the established Republican party into a quasi-progressive one. The Tea party, which rose up against the trend and picked up those guns which the "moderate" Republicans had put aside to avoid being accused of pushing grandma off the cliff, was used by a weakening GOP to ride to a substantial victory. But now the Tea Party is shunned by Repubs who drifting back into fear mode. Hoping to win by default, not by stick to your guns principle. So, is it better to be clobbered in the election by sticking to principle, or is it better to have the pyrrhic victory of gaining election but losing your soul? Or is that a false dichotomy? There is always the next election. Hone your message. Stick to your guns. Fight with vigor and principle. Show that you are a worthy opponent who will not back down or fear mealy-mouthed, pusillanimous media pundits--walk soft but carry a big stick. Articulate your principles with passion. Have a clear identity, don't weasel back and forth to win. That is not honorable. It is not appealing to people who are looking for inspiration. The notion that it's all about the economy, stupid, is a demeaning view of human nature. Either the economy will take care of itself if left the space to do it, or it can constantly be manipulated by whatever slight of hand necessary to convince us that it's "heading in the right direction." If we remain passive in the face of supposed financial doom, the ruling class can pull a dug here or there to give us milk, forgive or eliminate a debt, become powerful enough to do whatever, and by any means, is necessary to keep us complacent and happy. The laws of economics are no obstacle to those who don't abide the rule of law. You can argue like a prattling idiot about an "unsustainable debt," but it has long ago been unsustainable, going from millions to billions to trillions--what height is insurmountable for administrative magicians to climb? If We The People have been reduced to overgrown children who have lost the ability to strike out on our own and seek the fullness or our lives in spite of the difficulty and danger of the quest, then let us throw in the towel and let the ruling class give us our daily bread and comfort. We can finally shuffle off the ancient notion of humanity being a noble state, next to that of the Gods. And we can trade our souls for manna. |
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"Is the answer, then, to compromise your principles and win elections?" I don't know. Maybe winning with a John McCain is better than losing with a Ted Cruz. I'm not saying that's what I believe, I'm saying there's a case to be made for that argument. "Isn't that what has been happening for the past several decades?" Not in New England, where it's almost impossible to get elected if you are in the GOP. And the US Congress has been controlled by Democrats for far longer than it has been controlled by Republicans. I cannot disagree with anything you are saying. But today, it's very difficult for a true conservative to get elected, at least to the Executive Branch (we continue to do well in midterms, because the liberal media cannot demonize hundreds of candidates running all over the country). Detbuch, I don't htink things can be fixed at this point. Those who understand elementary school arithmetic, have been saying, for 50 years, that SS and Medicare will go bankrupt due to the Baby Boomers. For 50 years, people who say that out loud have been demonized. I don't know that we can avoid going over the cliff at this point, because the Tea Party isn't going to control Congress and the white House. My predisction is that we slog along this way for 25 more years, then we start bouncing checks to people receiving entitlements. The impact of that will be so bad, that not even Spence will be able to say that Paul Ryan was wrong. That could well be the end of liberal economics, because no one will be able to claim that the liberals were right and the conservatives were wrong. |
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Jim--I just read this article this morning. It relates to our discussion about sticking to your guns or compromising.
http://www.redstate.com/2014/02/13/t...y-and-reality/ |
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Not even the most "conservative" politicians are totally "pure." As the article points out, even Cruz and Sessions cast occasional votes that don't meet some perfect standard. But their standards are high compared to "moderate" Republicans. What needs to be pure is the message. "Getting the message out" is no good if it is muddled. What makes the conservative message pure is its foundation--its principles. If those are compromised, the message is corrupted. Then it becomes politics. Winning. And the pyrrhic victory of having to rule against those principles. Therefore losing them. If the message is only about the "economy" and what we can do for you better than the other guys, it becomes a popularity contest full of deceitful promises and hateful aspersions. An appeal to the lowest political instincts. A message which tells the people that they are weak, needy, and base in character, and that you are no better so you are more able to relate to their needs and know best how to provide, not like some pie in the sky holier than thou purist who demands more of you than you can give, and can only give you vague promises of "liberty" and stuff that doesn't feed the belly. Oh, sure, you can dress it up, like Palin's lipstick on a pig metaphor, and convince everyone to accept the far less than "pure" arrangement of society because of inherited conditions left by previous regimes. But if you must compromise principles to get elected by putting makeup on the face of your message, how do you wipe it off if you "win"? If mud gets you there, won't the mud keep you mired in order to remain and win again? I don't accept that picture of the People. I think most want to be inspired. I think most want to feel good and noble, not like pigs at the trough. And I think the true and "pure" conservative message would connect with the better angels of humanity. I think there is a message beyond the "economy" and which is inspirational to the soul (dare I say that word) of the American People. Do you? |
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http://www.redstate.com/2014/02/25/g...g-back-senate/ |
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