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An interesting article about the poor and the rich. Here is the first part. The rest can be read at
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An interesting article about the poor and the rich. Here is the first part. The rest can be read at
Ripping off the poorAugust 13, 2004
As I was wrapping up last week’s column I couldn’t help but think about the wealth-gap, and the fact that it’s increasing.
From the most recent US Census data I found that the median household net worth in America is $55,000, most of which is home-equity. Without home-equity, the median household net worth is only $13,473. The average household net worth, on the other hand, is over $180,000 (including home-equity).
It indicates that most of the wealth is concentrated in the hands of a few, and that those few are extremely wealthy compared to the majority. But we already knew that from last week, since only one percent of taxpayers pay roughly one third of all the taxes.
Why do the rich get richer and the poor poorer?
I can think of two reasons: inflation and deficit spending.
Deficit spending is a politician’s favorite ways to buy votes. They promise this, and they promise that, and they have no way to pay for it other than raising taxes or issuing debt (borrowing).
It makes sense to raise taxes to buy votes. If only one percent of taxpayers pay roughly a third of the tax, and only five percent pay more than half of the tax, then you can make ninety-five percent of the population happy by raising taxes on the five percent. And if you can promise ninety-five percent of the population something they want, but don’t have, you might just get elected. Who cares about the five percent “rich” anyway? After all, they must have ripped off the less fortunate, the poor, and the working class to get rich in the first place -- so it only makes sense to tax them, and make them give some back......................
As I was wrapping up last week’s column I couldn’t help but think about the wealth-gap, and the fact that it’s increasing.
From the most recent US Census data I found that the median household net worth in America is $55,000, most of which is home-equity. Without home-equity, the median household net worth is only $13,473. The average household net worth, on the other hand, is over $180,000 (including home-equity).
It indicates that most of the wealth is concentrated in the hands of a few, and that those few are extremely wealthy compared to the majority. But we already knew that from last week, since only one percent of taxpayers pay roughly one third of all the taxes.
Why do the rich get richer and the poor poorer?
I can think of two reasons: inflation and deficit spending.
Deficit spending is a politician’s favorite ways to buy votes. They promise this, and they promise that, and they have no way to pay for it other than raising taxes or issuing debt (borrowing).
It makes sense to raise taxes to buy votes. If only one percent of taxpayers pay roughly a third of the tax, and only five percent pay more than half of the tax, then you can make ninety-five percent of the population happy by raising taxes on the five percent. And if you can promise ninety-five percent of the population something they want, but don’t have, you might just get elected. Who cares about the five percent “rich” anyway? After all, they must have ripped off the less fortunate, the poor, and the working class to get rich in the first place -- so it only makes sense to tax them, and make them give some back......................
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