The 75% who politically think they are (or could actually be part of) the 1%
Greetings:
About 20 years ago, as the current account deficits were beginning, I would note in classes that I taught on economics or marketing how my generation faced an uncertain future because as we got older and consumed the nation’s resources purchasing products made outside our borders, jobs traditionally available for those without degrees beyond high school would disappear.
Worse, I worried about members of my generation who had not adopted broad perspectives about society (highly correlated, but not completely, with those who stopped their education after high school graduation), would possibly be swayed by illogical arguments that would falsely place blame on others.
Only 25% of my generation completed degrees beyond high school. 75% of the generation did not, but many found jobs in manufacturing, good jobs with good pay. Some of the college graduates in the other group did very well. Some struggled. Some did broaden their worldview. Some did not.
In brief, a classic situation of differing worldviews and perspectives. Neither one better than the other, just different.
My fears have tended to come true. I run into so many people (HS or College educated) persuaded by the arguments that anyone can still climb to the 1%, if they just work hard enough, and government disappears. Ahhhhh…the siren call of capitalism.
I just had to respond to someone on Facebook who made the argument that 35% on income plus 15% on capital gains equaled a 50% tax. I had to show that depending on what is reinvested and what the rate of return is on the capital gains drives a weighted average between 35% and 15%. If $1,000 is the original incremental income (remember incremental?), and the investor doubles his or her capital gains money on $650 (after tax earned income), the total tax would be (about) $448/$1640, or just over 27%. (1000 x .35 + 650 x .15)
This is but an example of why I get so upset that illogical arguments persuade many in our nation, and they do not see that a cooperative society does not want to fleece people, but only to make sure the system is fair.
Too many people lull themselves into thinking becoming a member of the 1% is easy. Consider the odds to mirror those of the Powerball lottery, slim to none. Yes, someone wins, but luck, slyness, intelligence, network or some other factor usually plays the key role. Sometimes the reason is simply unethical.
Oh, I am sure that I’ll continue to receive a branding of “elitist” with this post. However, what am I to say when it is mathematically (and IRS legally) correct? Oh that is right, who cares about knowledge or facts. I’ll just believe what I want.
Best regards,
Michael
