Filed under: Bureaucracy, Capitalism, Democrat Corruption, Domestic Policy, Economy, Election 2016, Free Markets, Freedom, Media Bias, Politics, Progressives, Regulation, Socialism, Statism, Unemployment | Tags: Bernie Sanders, Hillary Clinton, Income Inequality
A constant theme for the Democratic presidential race has been income inequality. Democrats always want to increase envy in the minds of their loyalists, and what better way than to insist that America’s affluent got rich, unjustly, at the expense of the poor and the middle class. Envy and resentment stoke the fires of class warfare, and the Obama Administration’s lackluster economy and slow growth make people feel helpless and more inclined to blame others for their circumstances.
Liberals want to address income inequality by redistributing wealth from the well-to-do and giving it to the poor. It’s comforting to believe that the misfortunes of your life can be blamed on someone else. But natural demographic changes and lifetime income cycles distort the estimates of income inequality.
Young people just beginning a career not only don’t earn very much, but they want to get married and buy cars and houses and have babies. And they go into debt to do so. Their parents have been saving all of their lives, educating their children, and gradually building up some wealth. U.S Census data show a clear relationship between age and median net-worth in every quintile, Moreover, the death rate has fallen sharply — people are living longer, and there are more of them. Young people have less retirement savings, and the old folks have a far higher homeownership rate. Older workers have more skills built up over a lifetime, and are worth more to employers because they are more productive.
Only by focusing on the income brackets, instead of the actual people moving between those brackets, have the intelligentsia been able to verbally create a “problem” for which a “solution” is necessary. They have created a powerful vision of “classes” with “disparities” and “inequities” in income, caused by “barriers” created by “society.” But the routine rise of millions of people out of the lowest quintile over time makes a mockery of the “barriers” assumed by many, if not most, of the intelligentsia.
The Left believes in government, not in the free market, which they don’t understand at all. The only way that government can create jobs is to hire more people — which they do regularly by creating more regulations and more agencies — all of which is paid for by the taxpayers, thereby reducing the wealth of the people and the economy. This is what they call progress.
Bernie Sanders’ and Hillary Clinton’s campaigns are based on finding ever more ways to redistribute wealth, taking more money from more productive people and giving it to the less productive.
Raising the minimum wage is one way. “No one can raise a family on the minimum wage” they say. No one is supposed to. Minimum wage jobs are meant to be jobs for first-time workers. How many people do you suppose are qualified to wipe off tables, sweep the floor and punch labeled keys on the cash register at a fast food restaurant? Conversely, how many people do you suppose are qualified to manage 20,000 employees in 20 separate divisions of a giant corporation in fierce competition with other giant corporations in the same business?
“But it isn’t fair!” is the cry. Your mother probably told you that life is not fair. She was right. The young person who graduates from college and graduate school with excellent grades and an advanced degree is going to have a different life than the young person who dropped out of high school without graduating, and has had trouble finding a steady job. That isn’t about fairness.
In actuality, the middle class is just fine, and still driving the economy. What is happening is more a result of how the researchers divide up the quintiles into which they separate Americans. You have the poor, the lower middle class, the middle class, the upper middle class and the rich. Pew Research, for example, takes the median income in a given year, with half richer and half poorer. And how you define “middle income” can create all sorts of mischief and all sorts of interesting headlines. Pew’s definition of “middle income” isn’t anchored to any fixed standard of living, but in fact represents a rising standard of living over time. And surprisingly, everybody is substantially better off than they were 45 years ago.
Poverty has decreased across the world, and in 2015, food prices are down by 19 percent in just the last year. Food is more abundant, probably due to slight increases in carbon dioxide in the atmosphere, a natural fertilizer for plants which is greening the world.
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