What happens when the middle class loses ground?
Pundits whine. Politicians rant and rave. Bashing the rich becomes more popular. Resentment rises. Envy increases. And so do tax rates.
The rich cease being objects of admiration. They become "filthy." Roger Cohen, writing in the International Herald Tribune, bemoans the fact that while the "filthy" rich get even richer, "fabulous wealth creation has been unmatched by improved education. Teaching that will get you recognised in a global world is denied minority kids in failing schools."
We don't know what that means...maybe he means that people who teach minority students are dumbbells. And maybe they are. And maybe he thinks paying them more money will make them smarter.
Poor Mr Cohen. He has so much faith in the rich! He thinks they can do anything. Hedge fund managers expertly exploited this go-go credit bubble market; now they can do something about public education!
"Hedge fundocrats...should consider ways to pile money into ending this national failure." What faith he has...in people with money...and in money itself. Pile it on. Push it in. Stack it up. Is there any problem more money can't solve? Money has been pouring into "education" for the last four decades - while educational achievement levels fell. Still, Cohen thinks more money is the cure...not the problem.
Then, of course, he goes on to want to take money away from the people who have more of it. The rich get much of their money from capital gains, he complains, which are only taxes at a 15% rate, rather than the 35% top tax rate.
Expect more of this, dear reader. Brace yourselves.
Bill Bonner
The Daily Reckoning Australia
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About the Author
Best-selling investment author Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter companies. Owner of both Fleet Street Publications and MoneyWeek magazine in the UK, he is also author of the free daily e-mail The Daily Reckoning.
Comment by novosonic on 12 December 2007:
yes and no.....
'capitalism' is a euphamism for corporat welfare statism. it is far removed from it's "free trade" origions, also, people are tired of state socialism !!!
the poor vote their own way. it involves drugs and prostitution.
the elders are worried about their progenies future and our money based society is essentially dead in the water.... go team USA.
the future is now. but what will people be thinking in 2 years time, when essentially the sins of humanity against the planet ushers in the NEW AGE and the earth begins to shift radically.
it may make surviving the 'war to make the world safe for democracy' and the 'battle of the buldge' mild for the survivors who live thru it.
GO'D is the ultimate law. but he is neither judge or jury. he loves all of creation and has 10,000 lifetimes ahead for any and all to teach us love and compassion...
don't blow your future for a quick fix. the meek shall inherit the earth, and remember to teach your children to count their change :>)