It has been two years since the formation of the Tea Party, a radical right group. Finally, the left have responded with their own radical group; Occupy Wall Street (OWS). Thus far, OWS has been an unorganized assembly of students, unemployed workers, and unions. The topics of attention have ranged from beheading corporate leaders to legalizing drugs. However, one underlying theme has been the onslaught of the rich. Some of ‘The 99%’ have clearly placed their cross-hairs on ’The 1%’.
However, I would argue that class warfare is not the answer. I have heard far too many politicians crying that the rich need to contribute “their fair share.” How much is their fair share? Somebody making 10 million dollars pays 35% income tax which enables the government to collect $3.5 million in revenue. Another person may make $100,000, which puts them in the 20% tax bracket. Their tax responsibility is $20,000 a year. So the millionaire contributed $3.5 million and the $100,000 worker contributed $20,000. Is the wealthier individual getting more benefits from the government? No way Jose. However, someone making 10 million is probably a business owner. Not only is he contributing more in taxes but he is also supplying people with jobs! People don’t get rich at the expensive of other people. They get rich because they provide goods or services that people want or need.
Let’s take a look at some of these one-percenters; Steve Jobs, Bill Gates, Sam Walton. Steve Jobs was the fifth wealthiest individual in the United States when he passed away last month. He has been an idol to American businessmen and a charitable individual. As CEO of Apple he received $1 a year as his salary. Jobs achieved his high net-worth via Apple’s stock, which is arguably the best stock in the last ten years. His stock-option salary is only vulnerable to the capital gains tax of 15%. According to Warren Buffett and Barack Obama he would not be contributing his “fair share.” Should we demonize Steve Jobs? Hell no, we all know that Apple has employed millions of Americans and provided many of us with high-tech gadgets ahead of their time. Same respect and thankfulness should apply to Bill Gates, Microsoft, and the Gates Foundation. And what about Sam Walton and Wal-Mart? Americans would riot if they couldn’t get their cheap Wal-Mart goodies.
So we need to redefine who we are angry at. We can’t get angry at entrepreneurs and producers who are already hurting from the recession. We need to focus our disproval on the companies that engage in ‘crony capitalism’ with the government (see figure above). I’m personally peeved at the TBTF (too-big-to-fail) banks, the Federal Reserve, and the US Government for all their hand holding. What do they really contribute to society besides phony derivatives and triple packaged “shit” (as some Goldman Sacs employees called their Credit Default Swaps)? The banks and hedge funds are the only ‘corporations’ that engage in predatory trading, where deception is a tactical skill. These organizations also have the nerve to give their management bonuses with tax-payer money that was used to save them from failure. Wall Street lobbyists have infiltrated and corrupted our government. Our economic system can no longer be called Capitalism. Capitalism has not failed us. Crony-Capitalism is what we have and it is still failing us. These financial organizations remain overleveraged and on the brink of failure because they continue to engage in risky trading. These TBTF financial companies know their losses are backstopped by the government that turns to the tax-payer. The Federal Reserve has encouraged this whole racket by keeping interest rates low—encouraging people not to save, but to invest in the stock market or buy a house/car. Nothing will change and our economy will not recover until we cut the giant debt caboose loose. How do we do this? END THE BANKING CARTEL.
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