Tracing consequences both seen and unseen.
Justin M. StoddardMore Bailouts for the Rich
Posted at 7:45 pm on October 20, 2011, by Justin M. Stoddard

The rich on Wall Street are demanding more bailouts:

The Demands Working Group of Occupy Wall Street unanimously endorsed and is circulating for discussion the following demand, which will be submitted to the General Assembly of OWS:

Jobs for ALL – A Massive Public Works and Public Service Program

We demand a massive public works and public service program with direct government employment at prevailing (union) wages, paid for by taxing the rich and corporations, by immediately ending all of America’s wars, and by ending all aid to authoritarian regimes to create 25 million new jobs to:

-Expand education: cut class sizes and provide free university for all;
-Expand healthcare and provide free healthcare for all (single payer system);
-Build housing, guarantee decent housing for all;
-Expand mass transit, provided for free;
-Rebuild the infrastructure—bridges, flood control, roads;
-Research and implement clean energy alternatives; and
-Clean up the environment.

Wait, you didn’t think I was talking about corporate bailouts, did you?

No, I’m talking about the rich people who make up the Working Group of Occupy Wall Street.

There is a very inconvenient and awkward question that is not being answered by the OWS crowd, as it pertains to wealth. Even making the assumption that the majority of those protesting are lower-middle class (a very liberal assumption, by anecdotal evidence), that would still mean that they are richer than 80 to 90 percent of the world’s population.

In fact, the poorest 5 percent of the United States is still richer than 68 percent of the world’s population. When compared to the poorest in India, China, or Afghanistan, the inequality is breathtakingly staggering. That college kid who is 60 grand in debt may as well be Bill Gates to a girl born in parts of rural China or Afghanistan.

Whenever this is brought up, you will inevitably hear this as a riposte:

“The problem is that attitude can be very easily used as an excuse for dismissing the complaints of literally anyone who is not the most oppressed, marginalised, and miserable people in the world.”

In other words, you cannot ignore what is bad here because things are worse elsewhere.

Well, that statement may well have merit, were it argued in another context. In this context, it is meaningless. Here’s why.

The above “demands” have everything to do with trying to bring the classes to a parity rather than fixing the economy. We are constantly barraged with the 99 percent vs. the 1 percent rhetoric. This, in itself is a lie. At worst, the people protesting on Wall Street are the 32 percent. More likely, they are the 20 percent and up.

If there were one shred of intellectual honesty in this movement, the above demands would be much, much different. They would be calling for taxing everyone in America at a much higher rate and redistributing that money to the poor in China and India. As the holders of 20 percent of the world’s wealth, they surely can afford it. After all, there are millions upon millions of people living in soul-crushing, abject poverty at this very moment. A vast number of them can never hope to make more than $1 per day, if that.

Instead, we get demands for free education and free housing for all (well, for all the rich people living in the United States, anyway — everyone else can go get stuffed). This is nothing more than the rich seeking taxpayer money for bailouts through the use of force.

Sound familiar?

I’m not being flippant, here. When it comes to entitlements, tariffs, trade barriers, immigration or where I purchase my goods, I’ve not yet heard a convincing argument for why I should regard a middle-class or working poor American in any higher regard than the absolute poor of other countries.

When I’m told that I should buy American in order to save American jobs, I wonder why a South Korean’s job is of any less importance. When I’m told that I must pay my fair share to help the deserving and undeserving (relatively) poor of this country, I wonder why the absolute poor from other countries shouldn’t get that money first.

But this is what it’s come to, now.

Rich college-age kids asking for taxpayer funded bailouts in order to relieve them of a debt (paid by the taxpayers) that they voluntarily took on with full knowledge that they would have to pay it back. Not only that, the vast majority of them have the means to pay off said debt through hard word and dedication.

Now, tell me again why I should care that a rich kid got a liberal arts degree that didn’t pan out, when tens of millions are living in absolute poverty around the world. Tell me again why rich kids with liberal arts degrees aren’t sacrificing their income, well-being, and happiness to redistribute their wealth to those more in need.

It’s time that we stopped focusing on this murderous idea of “inequality” when we should be thinking instead of relative standards of living over time.

Maybe then we can focus on what’s wrong with our economy rather than just fight about which rich group of people get which bailouts.

[Cross-posted at Shrubbloggers.]


Filed under: Economic Theory, Government Spending, Labor, Politics, Taxes, Trade
Comments: 3 Comments
 

3 Comments »

  1. […] at The Lesson Applied.] — Justin M. StoddardComments […]

    Pingback by The Shrubbloggers » More Bailouts for the Rich — October 26, 2011 @ 4:10 pm

  2. […] percent of people who control wealth.  That’s simply an argument they dare not broach.  I’ve addressed this briefly here, but I’ll expound on it just a […]

    Pingback by The Lesson Applied » Steve Jobs: A Man of Good Works. Part I — November 6, 2011 @ 10:30 am

  3. […] 1 percent of people who control wealth. That’s simply an argument they dare not broach. I’ve addressed this briefly here, but I’ll expound on it just a […]

    Pingback by The Shrubbloggers » Steve Jobs: A Man of Good Works — Part I — November 6, 2011 @ 1:30 pm

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Henry Hazlitt"[T]he whole of economics can be reduced to a single lesson, and that lesson can be reduced to a single sentence. The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups."
Henry Hazlitt, Economics in One Lesson
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