wealth concentration

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m1ldslide1

Platinum Member
Feb 20, 2006
2,321
0
0
Originally posted by: blackangst1
Originally posted by: m1ldslide1
Originally posted by: blackangst1
Originally posted by: bamacre
My question to those who think they have a solution to the problem of a shrinking middle class is, why exactly is the middle class shrinking?

A number of reasons. More people are falling into the poverty class and more people are falling into the "rich" class. Although it isnt really defined, I think most can presume middle class to be somewhere around $24k-$75k/yr.


I couldn't disagree more. $75k/year per family is going to be lower class in most urban areas of the country; $75k per working parent will allow you to purchase a shitty home in a shitty neighborhood in most urban areas. If you consider this to be upper class then you are insane, if you consider it to be upper middle class then you are delusional.

Have you ever driven through Boston or New York or San Francisco? Do you have any idea how much one of those modest homes costs? Do you think that if you can drop $2 million on a 1000 square foot place in Manhattan that it makes you upper class? Think again. The bar is steadily rising, and always has been. If you think for a minute that the bar is lowering to include more people, or that a greater percentage of people are simply rising above a static marker due to their capitalistic ingenuity then you are mistaken.

I couldnt agree more. to add to your example, $75k in Jenks, OK is rich. Get it? Its subjective. I never claimed it was universal. :)

Yes but the discussion is about concentration of wealth within the United States, so the location of the family isn't relevant, Get it? It is of course relevant to them and the standard of living they'll enjoy, but it isn't relevant to a discussion about economic disparity within a national economy.
 

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
102,404
8,575
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Originally posted by: Craig234

You wouldn't destroy your credibility so utterly if you did not lie in your posts about others' positions.

:laugh:
 

Train

Lifer
Jun 22, 2000
13,591
87
91
www.bing.com
Originally posted by: BoberFett
Originally posted by: bamacre
Originally posted by: Craig234
In short, because the system is doing what wealthy groups want and not making a priority of the middle class in too many ways.

To add to my reply above, you've pretty much hit the nail on the head here, but in a manner which you may not see.

What you have stated here, Craig, is that the wealthy have used government to get their way, at the expense of the little guy, and I don't think there is any disagreement here.

In fact, IMO, that is inevitable. The wealthy will always try to have more influence in government. And in more ways than less, they will succeed.

But what I think you fail to see is that it takes two to tango. Just that it is inevitable that the wealthy try to proposition government, government will accept said propositions.

But then as you increase the size and power of the federal government, you increase the size and scope of the playground for the wealthy. If government is owned by the wealthy, and government gets more powerful, so do the wealthy. On the other hand, if the government is smaller, and weaker, so are the wealthy.

IMO, you shot yourself in the foot.

You're talking to a wall. I've tried explaining numerous times that the rich get richer because of government, not in spite of it.
This is true. if you think about it, progressive tax and spend actually FAVORS the rich. And its doubly ironic (if such a thing is possible) when you consider one of the desired outcomes is to eliminate income/wealth disparities, which if successful (never was nor will be) it would drastically reduce govt income, thus requring further tax increases. One of the reasons I call socialism a downward spiral.

 

blackangst1

Lifer
Feb 23, 2005
22,902
2,359
126
Originally posted by: m1ldslide1
Originally posted by: blackangst1
Originally posted by: m1ldslide1
Originally posted by: blackangst1
Originally posted by: bamacre
My question to those who think they have a solution to the problem of a shrinking middle class is, why exactly is the middle class shrinking?

A number of reasons. More people are falling into the poverty class and more people are falling into the "rich" class. Although it isnt really defined, I think most can presume middle class to be somewhere around $24k-$75k/yr.


I couldn't disagree more. $75k/year per family is going to be lower class in most urban areas of the country; $75k per working parent will allow you to purchase a shitty home in a shitty neighborhood in most urban areas. If you consider this to be upper class then you are insane, if you consider it to be upper middle class then you are delusional.

Have you ever driven through Boston or New York or San Francisco? Do you have any idea how much one of those modest homes costs? Do you think that if you can drop $2 million on a 1000 square foot place in Manhattan that it makes you upper class? Think again. The bar is steadily rising, and always has been. If you think for a minute that the bar is lowering to include more people, or that a greater percentage of people are simply rising above a static marker due to their capitalistic ingenuity then you are mistaken.

I couldnt agree more. to add to your example, $75k in Jenks, OK is rich. Get it? Its subjective. I never claimed it was universal. :)

Yes but the discussion is about concentration of wealth within the United States, so the location of the family isn't relevant, Get it? It is of course relevant to them and the standard of living they'll enjoy, but it isn't relevant to a discussion about economic disparity within a national economy.

And to that I agree :confused: YOU brought up the location argument, not me.

 

Jhhnn

IN MEMORIAM
Nov 11, 1999
62,365
14,686
136
Originally posted by: BoberFett
Originally posted by: bamacre
Originally posted by: Craig234
In short, because the system is doing what wealthy groups want and not making a priority of the middle class in too many ways.

To add to my reply above, you've pretty much hit the nail on the head here, but in a manner which you may not see.

What you have stated here, Craig, is that the wealthy have used government to get their way, at the expense of the little guy, and I don't think there is any disagreement here.

In fact, IMO, that is inevitable. The wealthy will always try to have more influence in government. And in more ways than less, they will succeed.

But what I think you fail to see is that it takes two to tango. Just that it is inevitable that the wealthy try to proposition government, government will accept said propositions.

But then as you increase the size and power of the federal government, you increase the size and scope of the playground for the wealthy. If government is owned by the wealthy, and government gets more powerful, so do the wealthy. On the other hand, if the government is smaller, and weaker, so are the wealthy.

IMO, you shot yourself in the foot.

You're talking to a wall. I've tried explaining numerous times that the rich get richer because of government, not in spite of it.

I don't see that as entirely accurate. I do agree that in the modern era certain philosophies have bent the govt to their will, beginning under RR. Prior to that, in the Post-WW2 period, the power of wealth was largely contained by tax structures, regulations, unions, and other facets of our society, implemented with the New Deal. The power of govt, and of democracy, was also exercised earlier in the progressive period with the trust-busters and the other progressive ideas of that era.

Big business demands big govt as a control- which, of course, doesn't happen when they get in bed together, which is what Reagan et al promised they'd do- or didn't you hear them correctly? I mean, uhh, Ronnie luvved business and business luvved Ronnie, and GWB even more- WTF did you think would happen?

It's not about the size of govt, it's about the purpose of govt...
 

bamacre

Lifer
Jul 1, 2004
21,029
2
81
Originally posted by: Jhhnn
It's not about the size of govt, it's about the purpose of govt...

But as Craig pointed out, the purpose of government is largely decided upon by the wealthy, who are much more capable of propositioning government compared to those less wealthy.
 

Craig234

Lifer
May 1, 2006
38,548
350
126
Originally posted by: CADsortaGUY
"our"? Not here in reality land. UHC is not an "American Dream" no matter how much you'd like to claim it is. It may be a liberal's wet dream however...

Now as to the OP - Wealth concentration can be "bad" but it's not something new - it's been since the beginning of time. Some will always have more than others and some will never be able to acquire meaningful wealth. Yes, we will always be able to single out the most notable of the "rich" and say they live in excess...yada yada yada... but that doesn't mean that concentration is "bad". Rather, it means that some can and will "abuse" their wealth in the eyes of those who may not be as wealthy. There really isn't much you can or should do about concentration as any attempt at social engineering will likely not have the desired effect(see most all gov't social engineering attempts).

You obviously have no clue about things like Chinese slave labor with little chance for better. Your failure to understand the progressive pollicies that have evolved our society to greater opportunies leads you to advocate terrible, harmful policies that have just that effect of defending things like the Chinese system (which does indeed produce some 'millionares').
 

Jhhnn

IN MEMORIAM
Nov 11, 1999
62,365
14,686
136
Originally posted by: bamacre
Originally posted by: Jhhnn
It's not about the size of govt, it's about the purpose of govt...

But as Craig pointed out, the purpose of government is largely decided upon by the wealthy, who are much more capable of propositioning government compared to those less wealthy.

Except during periods of deep economic and social unrest, like the progressive era, the depression era, and maybe today, too...

We still live in a Republic, based on democratic principles, and no matter how much money you have, you still have only one vote...

And when the electorate wakes from their slumber to find out they're being screwed by the people and institutions they trusted, change will occur.
 

bamacre

Lifer
Jul 1, 2004
21,029
2
81
Originally posted by: Jhhnn
Originally posted by: bamacre
Originally posted by: Jhhnn
It's not about the size of govt, it's about the purpose of govt...

But as Craig pointed out, the purpose of government is largely decided upon by the wealthy, who are much more capable of propositioning government compared to those less wealthy.

Except during periods of deep economic and social unrest, like the progressive era, the depression era, and maybe today, too...

We still live in a Republic, based on democratic principles, and no matter how much money you have, you still have only one vote...

And when the electorate wakes from their slumber to find out they're being screwed by the people and institutions they trusted, change will occur.

Now you're just being naive. :D
 

CADsortaGUY

Lifer
Oct 19, 2001
25,162
1
76
www.ShawCAD.com
Originally posted by: Craig234
Originally posted by: CADsortaGUY
"our"? Not here in reality land. UHC is not an "American Dream" no matter how much you'd like to claim it is. It may be a liberal's wet dream however...

Now as to the OP - Wealth concentration can be "bad" but it's not something new - it's been since the beginning of time. Some will always have more than others and some will never be able to acquire meaningful wealth. Yes, we will always be able to single out the most notable of the "rich" and say they live in excess...yada yada yada... but that doesn't mean that concentration is "bad". Rather, it means that some can and will "abuse" their wealth in the eyes of those who may not be as wealthy. There really isn't much you can or should do about concentration as any attempt at social engineering will likely not have the desired effect(see most all gov't social engineering attempts).

You obviously have no clue about things like Chinese slave labor with little chance for better. Your failure to understand the progressive pollicies that have evolved our society to greater opportunies leads you to advocate terrible, harmful policies that have just that effect of defending things like the Chinese system (which does indeed produce some 'millionares').

I thought you weren't going to reply to my posts? ;)

Your reply to mine doesn't make any sense based on what I posted. Chinese slave labor? PUhleese. My reply to you was about your BS version of the American dream. My other comments were about wealth concentration, which in a FREE society is exactly as I noted it. Do you want to chase around it's effect in each society or did you just post the chinese slave thing as another one of your duhversions since you obviously can't back up your liberal wet dream BS.
 

Craig234

Lifer
May 1, 2006
38,548
350
126
Originally posted by: Train
Originally posted by: BoberFett
Originally posted by: bamacre
Originally posted by: Craig234
In short, because the system is doing what wealthy groups want and not making a priority of the middle class in too many ways.

To add to my reply above, you've pretty much hit the nail on the head here, but in a manner which you may not see.

What you have stated here, Craig, is that the wealthy have used government to get their way, at the expense of the little guy, and I don't think there is any disagreement here.

In fact, IMO, that is inevitable. The wealthy will always try to have more influence in government. And in more ways than less, they will succeed.

But what I think you fail to see is that it takes two to tango. Just that it is inevitable that the wealthy try to proposition government, government will accept said propositions.

But then as you increase the size and power of the federal government, you increase the size and scope of the playground for the wealthy. If government is owned by the wealthy, and government gets more powerful, so do the wealthy. On the other hand, if the government is smaller, and weaker, so are the wealthy.

IMO, you shot yourself in the foot.

You're talking to a wall. I've tried explaining numerous times that the rich get richer because of government, not in spite of it.
This is true. if you think about it, progressive tax and spend actually FAVORS the rich. And its doubly ironic (if such a thing is possible) when you consider one of the desired outcomes is to eliminate income/wealth disparities, which if successful (never was nor will be) it would drastically reduce govt income, thus requring further tax increases. One of the reasons I call socialism a downward spiral.

The right is simply misguided in its view that abuse of power by the wealth can only happen through government. Government actually makes it harded for them.

The basic flaw seems to be that the right has a fear of 'the powerful', but they view that only through lenses seeing the government; wealthy people are rather benevolent.

I'm not going to justice to the issue in the attempt, but I'm going to put out an idea that I tthink sadly won't probably help as I'd like.

Think for a minute about human history: think about the palaces for the few, and the hungry, sick, miserable masses who had no escape from poverty.

How do you fix that situation? Historically, the only answer was the people organizing into armed resistance - but that's utterly not practical in today's advanced societies (or good anyway, for reasons ranging from the vast harm of the resulting violence to the lack of guarantee how the new regime will work out - consider from the government of Cromwell to the overthrow of the czar in Russia). To reinforce my point, societies have had this model of extreme concentratin of wealth and poverty for most globally for millenia.

Not because people liked it, because it's next to impossible to do anything about it when it exists.

Almost the only exception to the above in human history is a rare combination of factors - a cultural 'progressive' set of political writers concerned with human rights and improving things for the masses, a society in which there was no elite that was extremely wealthy because there was an overseas group who had that role and took the wealth (the wealthiest persion in the entire society had a modest home and farm), allowing this society to make new rules NOT driven by the greed of the elite, and the security situation one in which the vast distance of an ocean, and the rulers facing another world power, allowed this society *barely* to be successful in armed revolution; and finally, the fact that the leaders of the revolution had a society not all that interested in war, and they had to give the public a lot of power in order to win its support for the war. This rare combination of events, of course, was the American revolution - one which instantly inspired the people of the world to a new order where the powerful were under the rule of law as well.

The key to all this was the vote. It did not create new power; power has always and will always exist in a society from the days when a group of cavemen had a leader, to the ancient civilizations such as Hammurabi, when the basic of their being power over people and extraction of wealth were already in place. Rather, it gave the people a say in who would rule them, focring the leaders to serve the people's interests enough to get elected, in contrast to rulers who had only to control the population, a la Machiavelli's "The Prince".

Read Kevin Phillips' opus "Wealth and Democracy" for a fascinating history of wealth in the US from those early egalitarian days to the slow buildup of concentrated wealth. From the earliest days, the relatively wealthy were already pursuing policies in their own interest against the public interest, splitting the nation from the first presidency as a central issue in the bitter opposition between Jefferson and Adams (the latter also not understanding why a democray guaranteeing free speech should not imprison critics of the president).

It continued as President Jackson vetoed Congress' renewal of the charter of the central bank - and was impeached and came within a vote of being removed. And that's still in the agrarian society of the 1830's. It was the explosion of wealth in the industrial revolution which began to really show the situation. Before that, corporations had been very minor organizations in American society, relatively small with very narrow, highly regulated charters that they serve the public interest. But see what Lincoln said when it started:

?The money power preys upon the nation in time of peace and conspires against it in times of adversity. It is more despotic than monarchy, more insolent than autocracy, more selfish than bureaucracy. I see in the near future a crisis approaching that unnerves me, and causes me to tremble for the safety of our country. Corporations have been enthroned, an era of corruption will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people, until the wealth is aggregated in a few hands, and the republic is destroyed.?

The text I bolded was to highlight that not only are there the cautions people expect, but that in a democracy, propaganda to manipulate public opinion is an essential activity.

Every time you see an issue about how the top 0.1% are outrageously getting terrible policies responded to by an average citizen ranting about 'hard work', you see the effect.

The early effects of the increase in wealth were clear - the 'robber baron' class was created, and it owned the government - the Supreme Court became an absurdly pro-wealthy, pro-corporatocracy institution that is an embarrassment to the American legal culture to this day; the Congress and the President served their needs as well with 'laissez-faire' capitalism that had - surprise- some disastrous consequences on the economy and the huddled masses in the 1880's-1890's period, leading to the 'progressive era' backlash.

This was not new; in other societies, the wealthy have had the same sort of privilege and abusive power, but without the public able to do anything about it. It's a testament to the advantages of wealth that in our democracy the wealthy were so able to get their interests represented, through financing, propaganda, corruption, the simple ignorance of the people unable to organize any meaningful opposition (they work hard all day, and are not too able to form national political organizations), and other measures.

In fact, when the progressive era came, it was not through its direct candidate, who barely lost running on a campaign of a 'cross of iron', but through the assassination of the president creating the accidental wild card presidency of the egomaniacal self promoter Theodore Roosevelt, who also just happened to not be quite as directly indebted to the monied interests for his election and in a position to fight for the American people.

For the first century of our nation's history, workers organizing and striking were illegal. In the 1880's, a major steel strike had many people killed, and 160 of the strikers were arrested and charged with treason. Juries refused to convict them; the businesses blacklisted them from work. This is the environment Teddy Roosevelt was in.

Roosevelt railed against any laziness and demanded hard work; but he also pushed for a compromise in a coal worker strike, and higher taxes on the 'malefactors of great wealth'.

It is only through the combination of our democracy and in this case the unintended rise of Roosevelt that such speed bumps for the agenda of the wealthy happen.

Of course, Roosevelt was unique; his successor was right back to the support of the wealthy, leading Roosevelt to unsuccessfully challenge him by creating a progressive party that did not last past Roosevelt, and we were right back to 'laissez-faire' economics until they led to - surprise - the crash of the economy and the Great Depression.

This was another of those rare chances for th combination of democracy and luck to get the public interest represented - and it led to a large change for the better.

You talk about the power of government simply serving the wealthy, but that's not the case. Power is like a knife that can be used for good or evil, and the same is true in terms of power in government. The wealthy were not executed under FDR, as in the French Revolution; they did just fine, though the massive concentrations of wealth they'd built were reduced by government policy, and the people prospered as a result. The economy grew, more people were better off, the middle class was massively expanded.

This is the key point: there are three main situations, not two; two bad, one good:

- When the government is 'corrupted' to serve the wealthy, it becomes an instrument of oppressive power. Whether Monarchy, Right-wing Dictator, or Bush. (Bad).

- When the government power is reduced, the *means of the people to get the situation improved are greatly diminished*. Power is power, and it always finds ways for there to be people who concentrate and abuse it, in the absence of any democatic system. Whether it's one native civilization wiping out the one next to it, or the European powers colonizing other societies, or robber barons hiring people for slave wages forced to live and pay rent in company-owned housing (see modern Chinese labor), 'reducing government' does not 'reduce tyranny'. Tyranny exists without government; or when there is a larger government it attempts to co-opt the government.

*There is no libertarian fantasy land where the concentration of power in some form leading to tyranny, if not blocked by a democratic system, does not happen*.

- What democracy allows is for the public interest to - imperfectly - receive more power, to influence the policies of the government more. This can make the government the 'enemy of the wealthy', at least the wealthy think so; indeed, whether they are organizing a coup against Chavez in Venezuela, or successfully overthrowing Allende in Chile to replace him with a dictator Pinochet who will let the pro-wealthy Milton Friedman economists implement their policies, or the conspiracy to overthrow FDR in this nation by the powerful (not that well known, good General Smedly Butler who was invited to participate and instead exposed the plot), the wealthy don't like when the government inhibits their obscene levels of concentration of wealth, but it can happen.

And that's our best bet. For a Kennedy who understands wealth and tries to lead the nation to do better by its average people - even if he barely wins against a Nixon who is the man who did take orders from corporations to get rid of democracy in Chile in the incident I mentioned above.

When things come together - often with luck involved, but with democratic power for the public, some level of education of the public to get past the pro-wealthy propaganda - things can work better, and you get things like the remarkable event in human history of the United States' middle class expansion, and similar in some other nations who similarly had democracy and more 'liberal' cultures and leaders.

That's what it comes down to - whether society serves the interests of the many or the few. And as I said there are three combinations: a weak democratic government where the power will always be in the hands of the wealthy and abused; a democracy which for whatever reasons is corrupted and influenced by the wealthy; and a government which actually has an agenda of the public good. And guess what - the first two will always say that they are for the public good, too, because it helps pacify the people.

Jhhnn said it well in his statement that it's not the size of government to worry about - many big expansions in government from social security to medicare have had great benefits making them a good idea - but the purpose of government that matters. When the big increases in government are for the wealthy to get access to pay themselves taxpayer money, that's bad. That's what we've seen since Reagan - even tapping into the Social Security monty to pay it out to the wealthy and have the public 'owe itself' trillions.

That's not a problem with 'big' government; if the government weren't big, the people would suffer as much or more from the unelected powerful.

The rephrasing I'd do for his statement though is to say it's simply whether the people's interests are represented or not. And under Republicans since Nixon, they're not.

Indeed, it would be the greatest victory for the wealthy to turn the public against its own democracy - to replace the temporary failings of bad choices to a permanent systemic los of the very power of democracy, to cripple the ability of the people's government to stand up to the wealthy. This is the direction they're headed.

For example, should a nation have the right for its elected leaders, representing the people, to say they think another nation's products are not safe, and to regulate or ban them? Should the government have the right to create environental standards to protect the people?

In the 'free trade agreements' already passed, there is language that allows any corporation who loses sales to any government act - including foreign governments who sign the agreement - to appeal the issue to a secret, private group appointed by the business leaders, who have the authority - given to them by the free trade agreement - to fine the government for all lost income to the corporation, with no appeal to any court of democratically appointed group.

This cripples democracy. Governments cannot afford the liability of billions for every act they take for reasons of serving the public, if a purely business-run group is allowed to second guess them and apply the standard whether *they* think the regulation or policy is justified. That's how you get democracy not to exist, to become more ceremonial while the real policies are run by private wealth, the people unable to stop them.

The obvious position would be for the public to want those treaties modified - but that's very difficult. The wealthy will do all they can to prevent that; and look today, many years after such language was put in, at how little the public is aware of it, how little opposition there is to it, even while it quitely can change policies away frokm the public interest, to force governments to not represent the public, but to 'race to the bottom' on allowing pollution and other dangers to foreign corporations.

So again to summarize:

It's not the size that's so important - look at liberal JFK's small government and how it's the Republicans who have expanded the size so much, for that matter, while when the liberals have expanded it, it's been for the public good generally. It's the knife - to use it for good and not for corruption against the people.

The answer is not to cripple the democratically elected government's ability to stand up to the wealthy and guarantee tyranny as power becomen unelected, when the government is tyrannical as the agent of the wealthy; it is to protect democracy and fight for the public to elect better leaders.
 

Craig234

Lifer
May 1, 2006
38,548
350
126
Originally posted by: CADsortaGUY
Originally posted by: Craig234
Originally posted by: CADsortaGUY
"our"? Not here in reality land. UHC is not an "American Dream" no matter how much you'd like to claim it is. It may be a liberal's wet dream however...

Now as to the OP - Wealth concentration can be "bad" but it's not something new - it's been since the beginning of time. Some will always have more than others and some will never be able to acquire meaningful wealth. Yes, we will always be able to single out the most notable of the "rich" and say they live in excess...yada yada yada... but that doesn't mean that concentration is "bad". Rather, it means that some can and will "abuse" their wealth in the eyes of those who may not be as wealthy. There really isn't much you can or should do about concentration as any attempt at social engineering will likely not have the desired effect(see most all gov't social engineering attempts).

You obviously have no clue about things like Chinese slave labor with little chance for better. Your failure to understand the progressive pollicies that have evolved our society to greater opportunies leads you to advocate terrible, harmful policies that have just that effect of defending things like the Chinese system (which does indeed produce some 'millionares').

I thought you weren't going to reply to my posts? ;)

Your reply to mine doesn't make any sense based on what I posted. Chinese slave labor? PUhleese. My reply to you was about your BS version of the American dream. My other comments were about wealth concentration, which in a FREE society is exactly as I noted it. Do you want to chase around it's effect in each society or did you just post the chinese slave thing as another one of your duhversions since you obviously can't back up your liberal wet dream BS.

Uh, the agreement was that you said you would not reply to mine if I did not reply to yours.

You replied to mine, first. I replied to your reply. I'd love for you to keep your word.

Edit: the above inaccurate post is being left for historical preservation, but I made a mistake; I mixed up CAD with another member.

In CAD's case, I sent him a PM that because of his crossing a line, I'd ask him not to repond to my posts. He continued the rudeness, refused, I never said I wouldn't reply to his. If he'd asked me not to reply to his and agreed not to rpely to mine, I'd say yes, as I always have, but he didn't. He's lying above when he said that I said I wouldn't reply to his posts.

Having said that, we're way into 'getting into the mud with the pigs' territory and I see no reason to respond to him further.
 

shira

Diamond Member
Jan 12, 2005
9,500
6
81
Originally posted by: XMan
Originally posted by: shira
Originally posted by: bdw300the pie will continue to grow so long as we have an economic climate that is favorable to entrepreneurs and innovators...
The flaw in your reasoning is that although the pie (the total wealth of the U.S.) has grown, the piece of that pie owned by the average member of the middle and lower classes has gotten smaller. Thus, our current system is leaving more and more people LESS well off, even as the "haves" are doing better and better.

In a nutshell, you're arguing that the following is a good thing:

Before:
Total real wealth = $100.
Distribution: A has $60; B, C, D, and E each have $10.

After:
Total real wealth = $200.
Distribution: A has $180; B, C, D, and E each have $5.

The only problem with your assumptions is that things do progress over time. Back in feudal days the royalty owned essentially everything and the peasants fought over table scraps.

Today, familes in, say, the bottom 10% of America have access to luxuries like microwaves, air conditioning, computers, Internet, television, etc., etc. Fifty years ago that would be almost unthinkable. I'd much rather be in the lower 10% today than 50 or 100 years ago. The same will be true 50 or 100 years from now.

I'd argue with your distribution model, as well as the assumption that wealth is growing more concentrated in the hands of a few people. If that were the case, the number of millionaires and billionaires would be going down, not up.

http://money.cnn.com/2005/05/25/pf/record_millionaires/

http://marketplace.publicradio...ionaires_growing_fast/

To take your argument to its logical extreme, there should be exactly one person who owns 100% of everything, and everyone else is poor. Your forgetting that a long, slow process is underway.

The standard of living of the poor and middle classes is definitely up compared with feudal times or even 1960. But the question is, what has been happening the last few decades? There's evidence that the standard of living peaked for a majority of Americans in the 1970s:

Wikipedia on SOL in U.S.

Since 1975, practically all the gains in household income have gone to the top 20% of households... The rise in GDP in 2004 and 2005 was undergirded by substantial gains in labor productivity... Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups. -CIA factbook on the US economy, 2005.

The United States has one of the widest rich-poor gaps of any high-income nation today, and that gap continues to grow. In recent times, some prominent economists including Alan Greenspan have warned that the widening rich-poor gap in the U.S. population is a problem that could undermine and destabilize the country's economy and standard of living stating that "The income gap between the rich and the rest of the US population has become so wide, and is growing so fast, that it might eventually threaten the stability of democratic capitalism itself".

Median Wages have been on the decline in the United States since 1974. In 2004, the median income for a man in his 30s was $35,010. Adjusted for inflation, that's 12 percent less than what men the same age were making in 1974.

There were about 105 million households in the U.S. in 2004, so approximately 7.1% of households are millionaires, up dramatically from decades earlier. But what you're losing sight of is that being a millionaire today is not really "rich" anymore, despite the adjectives being thrown around. Even with the housing decline, a big chunk of the first $ million is tied up in a house. Frankly, I think of $1 or $2 million as merely upper-middle class. $20 million is today what $1 million was a few years ago.

If only a small percentage of people just can't get ahead, you can blame them for their own shortcomings. But when the real wages of 80% of the U.S. have NOT increased over the past 30 years, something is very, very wrong. You cannot blame 80% of the population for something that apparently has become highly structural.
 

Craig234

Lifer
May 1, 2006
38,548
350
126
Originally posted by: Jhhnn
Originally posted by: bamacre
Originally posted by: Jhhnn
It's not about the size of govt, it's about the purpose of govt...

But as Craig pointed out, the purpose of government is largely decided upon by the wealthy, who are much more capable of propositioning government compared to those less wealthy.

Except during periods of deep economic and social unrest, like the progressive era, the depression era, and maybe today, too...

We still live in a Republic, based on democratic principles, and no matter how much money you have, you still have only one vote...

And when the electorate wakes from their slumber to find out they're being screwed by the people and institutions they trusted, change will occur.

There was a period when the mafia in parts of our country owned politicians and police.

It was a terrible tyranny - to whom could you turn? No one.

The solution was not to get rid of politicians and police - which woudl only have led to even more power for the mafia who stepped into the vacuum. It was to get rid of corruption.

That took lives and money and years of effort, but it has largely happened.

The solution to the influence of the wealthy being too high over our government - and let's recognize it will always be higher than the average citizen - is not to attack our democratically elected government and weaken it and create a vaccum of power than the unelected wealthy will fill and be impossible to remove - it's to fix the corruption. To tolerate the corruption to protect the democratic system, and work to fix the problem, so we can get from a Bush to a Kenney, from a Reagan to an FDR.

Just as we needed and got systemic changes to things like slavery and unions being illegal, we need systemic improvements to the corruption from the wealthy.

Not to throw out the only chance for the public's opinion to matter, by weakening our democracy itself that is sometimes in the wrong hands.

Jhhnn, I disagree with the language to describe the problem as the 'slumbering' of the public; I think that doesn't well illustrate the problem, which involves such basics as the fact that the average citizens don't have any time or means for organizing power the way the people who can hire organizations to do so by the hundreds of millions can. I think it lacks a clear message on the solution needed. The public isn't so much slumbering as facing a large problem and needing to find a way to organize better.

When as Warren Buffet said there's a class war and his side is winning it, and the other side not only doesn't know it's happening but attacks anyone who says it is, that's not just 'slumbering', tempting as the phrase may be, it's the result of a massive problem with the cultural ideology, in part furthered by the 'noise machine' from the think tanks to the media reinforcing the wrong things to where people have no idea.

It takes big accidents usually for things to change; the current situation may be one of those accidents. Obama is still a wild card; he *could* be a new FDR - or not.

But at least he has the freedom from owing the wealthy for his election. Let's just hope his desire to reach out doesn't go as poorly as it did for Chamberlein in his pursuit of peace.
 

Jhhnn

IN MEMORIAM
Nov 11, 1999
62,365
14,686
136
Originally posted by: bamacre
Originally posted by: Jhhnn
Originally posted by: bamacre
Originally posted by: Jhhnn
It's not about the size of govt, it's about the purpose of govt...

But as Craig pointed out, the purpose of government is largely decided upon by the wealthy, who are much more capable of propositioning government compared to those less wealthy.

Except during periods of deep economic and social unrest, like the progressive era, the depression era, and maybe today, too...

We still live in a Republic, based on democratic principles, and no matter how much money you have, you still have only one vote...

And when the electorate wakes from their slumber to find out they're being screwed by the people and institutions they trusted, change will occur.

Now you're just being naive. :D

And you're trying to deny history.
 

CADsortaGUY

Lifer
Oct 19, 2001
25,162
1
76
www.ShawCAD.com
Originally posted by: Craig234
Originally posted by: CADsortaGUY
Originally posted by: Craig234
Originally posted by: CADsortaGUY
"our"? Not here in reality land. UHC is not an "American Dream" no matter how much you'd like to claim it is. It may be a liberal's wet dream however...

Now as to the OP - Wealth concentration can be "bad" but it's not something new - it's been since the beginning of time. Some will always have more than others and some will never be able to acquire meaningful wealth. Yes, we will always be able to single out the most notable of the "rich" and say they live in excess...yada yada yada... but that doesn't mean that concentration is "bad". Rather, it means that some can and will "abuse" their wealth in the eyes of those who may not be as wealthy. There really isn't much you can or should do about concentration as any attempt at social engineering will likely not have the desired effect(see most all gov't social engineering attempts).

You obviously have no clue about things like Chinese slave labor with little chance for better. Your failure to understand the progressive pollicies that have evolved our society to greater opportunies leads you to advocate terrible, harmful policies that have just that effect of defending things like the Chinese system (which does indeed produce some 'millionares').

I thought you weren't going to reply to my posts? ;)

Your reply to mine doesn't make any sense based on what I posted. Chinese slave labor? PUhleese. My reply to you was about your BS version of the American dream. My other comments were about wealth concentration, which in a FREE society is exactly as I noted it. Do you want to chase around it's effect in each society or did you just post the chinese slave thing as another one of your duhversions since you obviously can't back up your liberal wet dream BS.

Uh, the agreement was that you said you would not reply to mine if I did not reply to yours.

You replied to mine, first. I replied to your reply. I'd love for you to keep your word.



No, there was no "agreement" - just your twisted panties PM. You "told" me to not do something - there was no agreement or "IF". Maybe I was wrong originally when I said I thought you were normally intelligent... ;)
 

BoberFett

Lifer
Oct 9, 1999
37,562
9
81
Originally posted by: Jhhnn
Originally posted by: BoberFett
Originally posted by: bamacre
Originally posted by: Craig234
In short, because the system is doing what wealthy groups want and not making a priority of the middle class in too many ways.

To add to my reply above, you've pretty much hit the nail on the head here, but in a manner which you may not see.

What you have stated here, Craig, is that the wealthy have used government to get their way, at the expense of the little guy, and I don't think there is any disagreement here.

In fact, IMO, that is inevitable. The wealthy will always try to have more influence in government. And in more ways than less, they will succeed.

But what I think you fail to see is that it takes two to tango. Just that it is inevitable that the wealthy try to proposition government, government will accept said propositions.

But then as you increase the size and power of the federal government, you increase the size and scope of the playground for the wealthy. If government is owned by the wealthy, and government gets more powerful, so do the wealthy. On the other hand, if the government is smaller, and weaker, so are the wealthy.

IMO, you shot yourself in the foot.

You're talking to a wall. I've tried explaining numerous times that the rich get richer because of government, not in spite of it.

I don't see that as entirely accurate. I do agree that in the modern era certain philosophies have bent the govt to their will, beginning under RR. Prior to that, in the Post-WW2 period, the power of wealth was largely contained by tax structures, regulations, unions, and other facets of our society, implemented with the New Deal. The power of govt, and of democracy, was also exercised earlier in the progressive period with the trust-busters and the other progressive ideas of that era.

Big business demands big govt as a control- which, of course, doesn't happen when they get in bed together, which is what Reagan et al promised they'd do- or didn't you hear them correctly? I mean, uhh, Ronnie luvved business and business luvved Ronnie, and GWB even more- WTF did you think would happen?

It's not about the size of govt, it's about the purpose of govt...

I don't care who's in charge, over time wealth will accumulate. It's what it does. Tax the wealthy at 99%, redistribute it to the "poor" and elect Democrats for 50 years. You'll still end up with all of the wealth accumulated at the top.
 

Jaskalas

Lifer
Jun 23, 2004
36,030
10,357
136
Originally posted by: Jhhnn
It's not about the size of govt, it's about the purpose of govt...

This is akin to telling us the only thing wrong with a Monarchy is the Monarch.
 

blackangst1

Lifer
Feb 23, 2005
22,902
2,359
126
Originally posted by: Jhhnn
Originally posted by: bamacre
Originally posted by: Jhhnn
It's not about the size of govt, it's about the purpose of govt...

But as Craig pointed out, the purpose of government is largely decided upon by the wealthy, who are much more capable of propositioning government compared to those less wealthy.

Except during periods of deep economic and social unrest, like the progressive era, the depression era, and maybe today, too...

We still live in a Republic, based on democratic principles, and no matter how much money you have, you still have only one vote...

And when the electorate wakes from their slumber to find out they're being screwed by the people and institutions they trusted, change will occur.

Agree.
 

Steeplerot

Lifer
Mar 29, 2004
13,051
6
81
Originally posted by: Jaskalas
Originally posted by: Jhhnn
It's not about the size of govt, it's about the purpose of govt...

This is akin to telling us the only thing wrong with a Monarchy is the Monarch.

Takes big tools to deal with big problems.

We are not some shit backwater 13 colonies anymore.

Which is why "Conservatism" will always be a fail in the modern era.

But...but...GW Bush/Reagan/etc etc was not a REAL fiscal conservative.

That's right, because the whole concept is smoke blown up your ass by guys trying to make a buck kissing ass to the system on hate radio/selling books. And you are their useful idiots as Stalin liked to say.

Edit: This was not directed at you personally, but at all the Conservatives/Capitalist-Libertarians on here who STILL don't get why time and time again they are let down by Conservative politics and keep listening to these numbskulls on the radio sell their discredited, destructive and divisive drivel regardless of how far down the shitter we go everytime we give it a try again. (Yes, I am sick of this since Reagan)

I hate to say it but I am very much looking forward to a Democrat in power even though I cannot stand Clinton or his DLC cronies.
At least they know how to not run us into massive debt.
1 more week and Conservatism is pretty much a toothless regional minority party ftw.
 

blackangst1

Lifer
Feb 23, 2005
22,902
2,359
126
Originally posted by: TheRedUnderURBed
Originally posted by: Jaskalas
Originally posted by: Jhhnn
It's not about the size of govt, it's about the purpose of govt...

This is akin to telling us the only thing wrong with a Monarchy is the Monarch.

Takes big tools to deal with big problems.

We are not some shit backwater 13 colonies anymore.

Which is why "Conservatism" will always be a fail in the modern era.

But...but...GW Bush/Reagan/etc etc was not a REAL fiscal conservative.

That's right, because the whole concept is smoke blown up your ass by guys trying to make a buck kissing ass to the system on hate radio/selling books. And you are their useful idiots as Stalin liked to say.

Edit: This was not directed at you personally, but at all the Conservatives/Capitalist-Libertarians on here who STILL don't get why time and time again they are let down by Conservative politics and keep listening to these numbskulls on the radio sell their discredited, destructive and divisive drivel regardless of how far down the shitter we go everytime we give it a try again. (Yes, I am sick of this since Reagan)

I hate to say it but I am very much looking forward to a Democrat in power even though I cannot stand Clinton or his DLC cronies.
At least they know how to not run us into massive debt.
1 more week and Conservatism is pretty much a toothless regional minority party ftw.

bwahahahaha (breath) hahahahahahah

Good one!
 

Genx87

Lifer
Apr 8, 2002
41,091
513
126
Originally posted by: blackangst1
Originally posted by: TheRedUnderURBed
Originally posted by: Jaskalas
Originally posted by: Jhhnn
It's not about the size of govt, it's about the purpose of govt...

This is akin to telling us the only thing wrong with a Monarchy is the Monarch.

Takes big tools to deal with big problems.

We are not some shit backwater 13 colonies anymore.

Which is why "Conservatism" will always be a fail in the modern era.

But...but...GW Bush/Reagan/etc etc was not a REAL fiscal conservative.

That's right, because the whole concept is smoke blown up your ass by guys trying to make a buck kissing ass to the system on hate radio/selling books. And you are their useful idiots as Stalin liked to say.

Edit: This was not directed at you personally, but at all the Conservatives/Capitalist-Libertarians on here who STILL don't get why time and time again they are let down by Conservative politics and keep listening to these numbskulls on the radio sell their discredited, destructive and divisive drivel regardless of how far down the shitter we go everytime we give it a try again. (Yes, I am sick of this since Reagan)

I hate to say it but I am very much looking forward to a Democrat in power even though I cannot stand Clinton or his DLC cronies.
At least they know how to not run us into massive debt.
1 more week and Conservatism is pretty much a toothless regional minority party ftw.

bwahahahaha (breath) hahahahahahah

Good one!


As we stare at a 1 trillion\year deficit from a democrat congress and president for a min of two years. Bu bu bu but that is Bush's fault!
 

blackangst1

Lifer
Feb 23, 2005
22,902
2,359
126
Originally posted by: Genx87
Originally posted by: blackangst1
Originally posted by: TheRedUnderURBed
Originally posted by: Jaskalas
Originally posted by: Jhhnn
It's not about the size of govt, it's about the purpose of govt...

This is akin to telling us the only thing wrong with a Monarchy is the Monarch.

Takes big tools to deal with big problems.

We are not some shit backwater 13 colonies anymore.

Which is why "Conservatism" will always be a fail in the modern era.

But...but...GW Bush/Reagan/etc etc was not a REAL fiscal conservative.

That's right, because the whole concept is smoke blown up your ass by guys trying to make a buck kissing ass to the system on hate radio/selling books. And you are their useful idiots as Stalin liked to say.

Edit: This was not directed at you personally, but at all the Conservatives/Capitalist-Libertarians on here who STILL don't get why time and time again they are let down by Conservative politics and keep listening to these numbskulls on the radio sell their discredited, destructive and divisive drivel regardless of how far down the shitter we go everytime we give it a try again. (Yes, I am sick of this since Reagan)

I hate to say it but I am very much looking forward to a Democrat in power even though I cannot stand Clinton or his DLC cronies.
At least they know how to not run us into massive debt.
1 more week and Conservatism is pretty much a toothless regional minority party ftw.

bwahahahaha (breath) hahahahahahah

Good one!


As we stare at a 1 trillion\year deficit from a democrat congress and president for a min of two years. Bu bu bu but that is Bush's fault!

Our next 4 years of increased deficit are in no way shape or form the responsibility of of the administration who creates it!
 

ebaycj

Diamond Member
Mar 9, 2002
5,418
0
0
Originally posted by: blackangst1
Originally posted by: m1ldslide1
Originally posted by: blackangst1
Originally posted by: bamacre
My question to those who think they have a solution to the problem of a shrinking middle class is, why exactly is the middle class shrinking?

A number of reasons. More people are falling into the poverty class and more people are falling into the "rich" class. Although it isnt really defined, I think most can presume middle class to be somewhere around $24k-$75k/yr.


I couldn't disagree more. $75k/year per family is going to be lower class in most urban areas of the country; $75k per working parent will allow you to purchase a shitty home in a shitty neighborhood in most urban areas. If you consider this to be upper class then you are insane, if you consider it to be upper middle class then you are delusional.

Have you ever driven through Boston or New York or San Francisco? Do you have any idea how much one of those modest homes costs? Do you think that if you can drop $2 million on a 1000 square foot place in Manhattan that it makes you upper class? Think again. The bar is steadily rising, and always has been. If you think for a minute that the bar is lowering to include more people, or that a greater percentage of people are simply rising above a static marker due to their capitalistic ingenuity then you are mistaken.

I couldnt agree more. to add to your example, $75k in Jenks, OK is rich. Get it? Its subjective. I never claimed it was universal. :)

Ahh.. You're from OK.
That explains SO MUCH.
 

MovingTarget

Diamond Member
Jun 22, 2003
9,002
115
106
Originally posted by: Genx87
Originally posted by: blackangst1
Originally posted by: TheRedUnderURBed
Originally posted by: Jaskalas
Originally posted by: Jhhnn
It's not about the size of govt, it's about the purpose of govt...

This is akin to telling us the only thing wrong with a Monarchy is the Monarch.

Takes big tools to deal with big problems.

We are not some shit backwater 13 colonies anymore.

Which is why "Conservatism" will always be a fail in the modern era.

But...but...GW Bush/Reagan/etc etc was not a REAL fiscal conservative.

That's right, because the whole concept is smoke blown up your ass by guys trying to make a buck kissing ass to the system on hate radio/selling books. And you are their useful idiots as Stalin liked to say.

Edit: This was not directed at you personally, but at all the Conservatives/Capitalist-Libertarians on here who STILL don't get why time and time again they are let down by Conservative politics and keep listening to these numbskulls on the radio sell their discredited, destructive and divisive drivel regardless of how far down the shitter we go everytime we give it a try again. (Yes, I am sick of this since Reagan)

I hate to say it but I am very much looking forward to a Democrat in power even though I cannot stand Clinton or his DLC cronies.
At least they know how to not run us into massive debt.
1 more week and Conservatism is pretty much a toothless regional minority party ftw.

bwahahahaha (breath) hahahahahahah

Good one!


As we stare at a 1 trillion\year deficit from a democrat congress and president for a min of two years. Bu bu bu but that is Bush's fault!

The buck stops where?

...