Wednesday, September 16, 2015

Where Wealth Redistribution Lies

You hear the negative tone from the Right repudiating wealth distribution as a socialist corruption of democracy and capitalism.

Here's the question: Are they stupid, blind, or obfuscating?

Let's go with reality instead of philosophy for a second.  The real story of wealth redistribution is the shift of wealth from the lower and middle class to the wealthy over the last 50 years.  When the rich control politics which influences government (which makes the rules about taxes and their distribution, fiscal policy, minimum wage, labor law, etc.), it's just what I'd expect.  They end up getting richer and more powerful on the backs, and from the pockets. of the rest of us.  Wage inequality and the wealth redistribution in this country is out of control (to use technical systems analysis jargon).  If it keeps up, it's a positive feedback loop that will continue to weaken America (against a hypothetical potential of what it could be) until the top-heavy wealth distribution leads to increasing desperation and it tumbles.  Trickle down just didn't really work, did it.

The smartest long-term action for the currently wealthy is to change course and increase the wages of the poor and lower middle class to help more of them reach financial stability because their collective confidence in their situation creates economic stability instead of slaves that will eventually check out (happening more and more when you look at the unemployed, no longer looking for work, which turns them into bigger burdens).

What are the odds, though, of the wealthy (who hold corporate purse strings) voluntarily shrinking the wage gap between the higher and lower wages within their control?  Keep margins the same, but switch the salary scale way to the left of what it is now.  Costco versus Walmart.  Starbucks versus McDonalds.

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