There is Great Income Inequality on the Set of the Big Bang Theory

Posted by PITHOCRATES - September 21st, 2013

Week in Review

It is hard to explain economic fundamentals to the public.  To explain how free market capitalism made this country great.  And how supply and demand set prices.  How unskilled workers are in less demand than highly skilled workers.  So highly skilled people earn more money than unskilled workers.  Which is why doctors earn more money than those working in fast-food.  Because there always seems to be a shortage of doctors.  While there is no shortage of minimum wage jobs.  So doctors are worth more because they are in greater demand.

Those on the left want a living wage for everyone.  Regardless of their skill level.  Unions are trying to unionize fast-food workers and Wal-Mart employees.  So they can force these businesses to pay them more than the market price for their labor.  As determined by the laws of supply and demand.  Like they do everywhere else.  Computer programmers were in high demand during the dot-com bubble.  Raising the salary of computer programmers.  And people went to college to learn how to be computer programmers to get those high salaries.

But try to explain this to the layperson when the left demonizes Republicans.  Calls them greedy.  Saying they want to take food away from children and the poor.  And throw Grandma off the cliff.  That they’re in the pockets of the big, evil corporations.  And that unfettered capitalism is corrupt, unfair and just plain mean.  What makes it especially difficult to explain these economic fundamentals is that the left controls the public schools and our universities and colleges.  And the entertainment industry.  So they’re teaching our children to hate free market capitalism.  And Republicans.  While the entertainment industry mocks and ridicules anyone who tries to advance sound economic policies instead of expanding the welfare state.  Instead they preach egalitarianism.  Where everyone should get a living wage regardless of their skill level.  And where we treat people fairly and with dignity.  Transferring and distributing wealth fairly.  From those according to ability to those according to need.

It sounds nice.  Caring.  And kind.  Despite every country that has ever tried that became a horrible place to live.  For that’s what they did in the former Soviet Union.  The People’s Republic of China.  The former East Germany.  North Korea.  Cuba.  Nations that had to use a brutally oppressive police state to prevent their people from escaping the kind of egalitarianism the left is constantly trying to bring to the United States.

Perhaps the most frustrating thing in trying to teach economic fundamentals to lay people is that their heroes in the entertainment industry are always campaigning for the left.  They attend fundraisers for the left.  Help them win elections.  And they constantly mock and ridicule those on the right.  Despite indulging in some of the most unfettered free market capitalism themselves (see ‘Big Bang Theory’ Stars Seeking Hefty Pay Raises by Lesley Goldberg, The Hollywood Reporter, posted 9/17/2013 on Yahoo! TV).

Sources tell THR that Emmy winner Parsons (Sheldon), Galecki (Leonard) and Cuoco (Penny) will negotiate together — as they did in 2010 — and are looking for a considerable bump in pay from their current deal. According to a TV Guide Magazine report, the trio currently earns $325,000 per episode and may seek up to $1 million an episode…

The new deals for Bialik and Rauch, who joined the series midway through its run and were promoted from recurring to regulars, will see their salary jump from $20,000-$30,000/episode to the $60,000 ballpark, with increases each year taking them to $100,000 per episode by the end of their new contracts.

One million an episode versus $100,000 an episode?  Wow.  Talk about your income disparity.  There is no egalitarianism on the set of the Big Bang Theory.  There’s no fairness.  And just think how much food this could have bought for the children.  And the poor.  If these people were corporate officers they would be hated and despised for their greed.  Especially when the median household income (the income that supports an entire family) has been languishing around $53,000.  And here are actors making more than that each episode they film.  Is that fair?  When others have so little?

Yes, it is unfair.  But is it wrong?  No.  This is free market capitalism.  This is the top-rated comedy on television.  It has great writing.  And great characters.  Which the writers created.  But if you watch an early episode and then a later one you will see how these actors have evolved these characters.  In the first episodes Penny was the pretty neighbor Leonard was smitten with.  But watch her now.  And all the things she doesn’t say.  Her body language and facial expressions.  The little nuances that have transformed Penny into a real life person we look forward to seeing every week.  Kaley Cuoco has made Penny into what she is today.  As Jim Parsons has made Sheldon into what he is.  And Johnny Galecki has made Leonard into what he is.  The rest of the cast is probably the best ever fielded on a sitcom.  But it is the interactions they have with these three that make this show the number one comedy on television.

So, no, we don’t begrudge them from getting these unfair contracts.  More power to them to get as much as they can get.  Sure, it’s unfair to the actors that came before them.  When things were very egalitarian.  Where the actors made far less than they do today.  Even if that show went on forever in syndication.  Like Gilligan’s Island.  Making a lot of money for the owners of that show.  But not the actors.  No, they didn’t get a dime from that syndication.  Worse, none of them made close to a million dollars an episode.  They didn’t get paid a lot.  But everyone made closer to what everyone else made.  Because back then actors were more equal.  Unlike today.  Where there is great income inequality between actors.

So there is nothing wrong with Parsons, Galecki and Cuoco making these huge sums of money.  Or anyone else in the entertainment community.  It would be nice, though, if this community wasn’t publically against the very thing that they benefit so handsomely from.  Free market capitalism.  Which has been very good to them.  As it is very good to everyone.  But yet the entertainment community generally endorses the left.  And attacks the right.  Which helps the left raise taxes and burden business with more costly regulations.  Things that hurt the economy.  And keeps the median household income from rising.  Harming the middle class.  But making no impact on these superrich.  This is the problem we have with the entertainment community.  They’re hogging all the free market capitalism for themselves.  While forcing us to live in the miserable social democracy they helped to create with their endorsement of the left.

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North Korea turning to Free Markets to End Famine and Abject Poverty

Posted by PITHOCRATES - June 2nd, 2013

Week in Review

Our public schools are teaching our children that capitalism is evil and unfair.  That government is needed to prevent business owners from making too much profit at the people’s expense.  Our public schools teach our kids this because the left controls our public schools.  And the left hates capitalism.  They would love to replace capitalism with socialism.  An egalitarian system that puts people before profits.  Because putting people before profits is the only way to truly increase the quality of life.  Unless you actually live in a place where they put people before profits (see NKorean farmers planting rice with profits in mind by AP posted 5/31/2013 on Yahoo! News).

Farmers say they have begun working under the new policies, which are designed to boost production by giving managers and workers financial incentives. Foreign analysts say the moves to spur North Korea’s moribund economy suggest Pyongyang is taking cues from Beijing on how to incorporate free market ideas within its rigid socialist system…

Impoverished North Korea suffers chronic food and power shortages and has not released economic data for decades. South Korea’s central bank estimates the North’s gross national income, an indicator of the average standard of living, was $1,250 per person in 2011 compared with $23,400 in South Korea.

In the past, the North Korean state set workers’ salaries. Under new measures announced April 1, the managers of farms, factories and other enterprises have been given leeway to set salaries and offer raises to workers who help drive up production…

Beijing dismantled its centrally planned economy slowly. In the 1970s, it began allowing farmers to keep more of their harvests, giving them an incentive to grow more to sell on newly permitted free markets. Food production soared.

In the mid-’80s, the government gave state enterprises the authority to link bonuses and salaries to better performance. Those changes were mostly aimed at managers, but they cracked a communist-era preference for egalitarianism.

New rules in the early 1990s gave state enterprises full flexibility to set wages, widening the use of performance incentives. In that decade, China truly broke away from its centralized “iron rice bowl” system of guaranteed employment and state-set incomes…

At the Tongbong farm in the eastern city of Hamhung, farmers are in the midst of a busy rice planting season after a long, cold winter.

A long, cold winter?  Guess there’s no global warming in North Korea.

North Korea’s “rigid socialist system” has impoverished and starved her people.  As well as left them in the dark as they don’t have the energy to light up the night.  This is egalitarianism.  Everyone’s life is equally miserable.  This is what socialism gets you.  Countries like North Korea, Cuba, the former Soviet Union and China under Mao.  Countries notable for their abject poverty.  And occasional famine.  This is what the left wants America to be.  Egalitarian.  Where we put people before profits.  Where no one has any incentive to do anything.  Because working harder than the next guy doesn’t improve your lot in life.  So you don’t work harder.  You do the minimum.  Because why work harder when the outcome is always the same?  Misery.

No doubt the American left disapproves of North Korea’s introduction of market forces.  And the profit incentive.  For it puts profits before people.  They’d rather see another layer of bureaucracy.  And another 5-year plan.  Where brilliant government elites think brilliantly to solve the nation’s problems.  Instead of leaving it to the chaos of the free markets.  For what did the chaos of the free markets ever do for the people?  Other than give them an obesity problem while socialism gives her people famine.  Free markets give her people smartphones and the Internet.  While Socialism can’t even light up the night.  And free markets give her people peace and happiness.  While socialism gives her people fear and intimidation.

Of course, the American left doesn’t have a problem giving fear and intimidation to some people.  As the IRS persecution of conservatives shows.  Which is perhaps why the American left admires socialism so much.  Why they insist that we put people before profits.  Because when we do we move closer to a police state like they have in North Korea.  Something the American left no doubt would like.  For it would make it easier for them to persecute their political enemies.

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FT149: “Poor people don’t hate rich people; they envy them and buy lotto tickets to become one of them.” —Old Pithy

Posted by PITHOCRATES - December 21st, 2012

Fundamental Truth

People don’t hate the Lifestyles of the Rich they just hate the Rich because they’re Living it Instead of Them

Overweight and less beautiful women hate beautiful women with toned, firm bodies.  Overweight and less handsome men hate more handsome and muscular men who get all the beautiful women with toned, firm bodies.  They may hate those who are more physically attractive than they are.  Until they start dieting and going to the gym to become one of them.  Once they are one of the beautiful people they no longer hate the people they once did.  In fact, they now enjoy being part of their world.  A world where their physical appearance gets them the attention they didn’t know when they were less attractive.  But for some dieting and working out is hard work.  Especially if they have to work harder than others who can eat and drink anything they want without putting on a pound.  So if they falter from their new healthy lifestyle and put that weight back on those old feelings of hatred will return.

People fear cancer.  They hate cancer.  And may adopt a healthier life style to avoid cancer.  By eating healthier.  And exercising.  They may quit smoking and cut buck on drinking.  And they may add certain foods to their diet they understand will help prevent cancer.  Even if some of these foods aren’t delicious.  After adopting a healthier lifestyle they don’t change their position on cancer.  They still hate it.  But staying on a healthy diet and making time to exercise is hard.  Because the delicious, less healthy foods are hard to give up.  And going to the movies is a lot more enjoyable than going to the gym.  Once their healthier lifestyle lapses their position on cancer does not change.  They still hate it.  As they always hated it.

There is a difference between hate and envy.  You may hate people you envy.  Because they are, or have, everything you want.  And you covet what they have.  But what you hate is that they are living the good life instead of you.  They don’t hate the good life.  Whereas you don’t envy what you truly hate.  No one has ever complained that someone else got cancer instead of them.  No one has ever complained about the unfairness of cancer that way.  Usually the complaint is more along the lines of ‘why me and not someone else’.  For the hate of cancer is a pure hate.  It is not relative.  It is absolute.  Whereas someone’s hate of the rich is relative.  It will disappear the moment a person comes into money.

People in the Public Sector exploit the Taxpayers to pay for their very Generous Pay and Benefit Packages

Kids may go on to college and take courses in the social sciences.  Where they learn about the unfairness of capitalism.  The evil of corporations.  How businesses exploit their employees.  How they put profits before people.  By the time they leave college the word ‘profit’ is a four-letter word to them.  And they believe we should shun anyone pursuing profits like those exploitive business owners.  Raising taxes on them is a good thing.  For by doing so we can help redistribute the wealth from those hoarding it to those who don’t have enough.  To produce a fair and egalitarian society.

They also learned how socialism is better.  That the Soviet Union only failed because of the Americans undermining a superior economic system.  They believe so strongly that they vote Democrat to try and do something about making America a fairer place to live.  They go on to get jobs in the public sector to do their part in making America fairer.  By redistributing wealth.  To help those who have little.  And they exploit the taxpayers.  Forcing them to pay for their very generous pay and benefit packages.  While those same taxpayers never live a life as fair or as equal as the public sector workers they support.

These public sector workers envy the life of the rich.  They don’t hate that life.  They just hate the people who are smarter and more talented than they are who were able to achieve that life.  It’s not fair that these people had talent.  And worked hard for success.  So it’s only fair to take their money away from them to make society fair.  And so they can enjoy a lifestyle that neither their talent nor their ability could ever provide.

Poor People voted overwhelmingly for President Obama to Punish the Rich for Winning Life’s Lottery

President Obama won reelection with a campaign of class war.  Getting the people to believe that the rich weren’t paying their fair share in federal income taxes.  Despite the top 10% of income earners paying 70% of all federal income taxes.  Early on Occupy Wall Street agitated the people against the 1%.  Which grew into a bitter character assassination of Mitt Romney.  Because he was rich.  People hated him for that.  Not for having money per se.  For the people wanted everything he had.  They just hated him because he had the talent to earn what they couldn’t.  For they lacked the talent to achieve the success of Mitt Romney.

President Obama enjoyed the support of rich Hollywood stars and musicians.  And the president enjoyed hobnobbing with them.  Even the suffering masses enjoyed seeing the president hobnob with their idols.  Even though they had wealth just like Mitt Romney.  But for some reason their inequality was okay.  And these superstars, incidentally, all went into their chosen field to become rich.  To live in mansions.  And to have more money than they could ever spend.  While the people castigated Mitt Romney for having money the people looked on in awe and reverence at the lifestyle of the rich and famous they so admired.  And all the rich and famous had to do to get this pass on having obscene wealth is to attack other people with wealth.  And publically support Democrats.  You do that and they will leave you alone.  No matter how much money you shelter in the Cayman Islands.

No one hates rich people.  They just envy their lifestyles.  And covet what they have.  They hate the fact that they weren’t born with the passion, drive, ability or talent to become rich.  And hate these people for being able to do what they cannot.  Become rich.  Though it doesn’t stop them from trying.  Especially poor people.  Who voted overwhelmingly for President Obama.  To punish the rich for winning life’s lottery.  While they themselves spend every last dollar they can buying lotto tickets.  For they may have voted for President Obama to punish the rich.   But that’s only because they envy the rich.  And want to become one of them.  Should they win the lotto their position on hating the rich will quickly change.  Perhaps going so far as to start voting Republican.  To save as much of their winnings from the taxman as possible.

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China has Severe Inequality and the Worst Public Toilets in all of Asia

Posted by PITHOCRATES - September 8th, 2012

Week in Review

The Left believes the government can make capitalism better.  And fairer.  In the Eighties they liked to point to Japan.  And the incredible economic growth they had thanks to government partnering with business.  Before their deflationary spiral and their Lost Decade.  Thanks to all that government partnering with business.  But that was yesterday’s news.  Today they like to point at the economic juggernaut that is China.  And say, “See?  That’s what strong government can do.”  For they believe China can get things done because they don’t have to deal with that pesky democracy.  All of those elections.   And being answerable to the people.  In China the government rules.  And the people quake in their boots.  Which lets China get things done.  And make a better society for all Chinese (see The forbidden public toilets of Beijing by Justin Rowlatt posted 9/8/2012 on BBC News Magazine).

Jeff Sun is the scion of one of China’s new rich and the founder of the “China Super Car Club”. He has got so many he cannot even remember them all…

We met Jeff while reporting on the yawning chasms of inequality that have opened up in Chinese society.

We filmed in some of the poorest communities I have ever visited – Chinese villages where no-one has ever owned a car and where they still till their fields using a single donkey, shared between dozens of farmers.

A better society for all Chinese?  Granted there are those on the Left who would love to see a world where no one owned a car.  But one donkey shared between dozens of farmers?  That doesn’t sound like a fairer society.  Not when there are rich people elsewhere who have so many cars that they can’t remember them all.  So apparently this state-capitalism (or as they say in China, communism) isn’t as egalitarian as the Left would like to believe.  For in America there is more capitalism than communism.  And yet American farmers don’t share donkeys.  No.  In America farmers own their own tractors.  Which seems to be a bit more egalitarian than communist China.  But it gets worse.

The journalists’ rule of thumb is that you cannot report the so-called three Ts – Tiananmen, Taiwan or Tibet.

We inadvertently discovered a fourth T.

In an article in the country’s English language newspaper, China Daily, I came across an editorial featuring stinging criticism of China from the WTO. Not the World Trade Organisation, this was the less well-known World Toilet Organisation.

This WTO had ranked China as having the worst public toilets in all Asia. The paper explained how, in response, Beijing had introduced rigorous new hygiene standards – now no more than two flies are now allowed in any public toilet.

The paper was in no doubt about the importance of the issue. “Clean public toilets are the symbol of a civilized society,” it thundered. The controversy made me chuckle and I mentioned to our government minder that I wanted to cover this storm in a toilet bowl.

It was Mr Chen’s job to ensure we did not break any reporting rules. He had been a cheerful, relaxed companion throughout our three-week journey, but now his face darkened.

“I do not think that would be a good idea,” he said gravely…

Mr Chen vanished for a few moments. When he returned his manner was forbidding.

“I am sorry Justin but I have to tell you cannot report this story at all.”

The human rights issue of Tiananmen, Taiwan or Tibet may be a sore spot for China as well as the liberals who so admire their way of governing.  But the worst public toilets in all Asia?  That affects everyone.  At least those who have to drop trou in their busy day away from home.  Not to mention the tourists.  The Chinese government may not know a good, quality public toilet but people traveling to their country no doubt do.  Oh the shame.  Oh the humanity.  Oh the inequality.  No wonder the sensors will allow journalists to report about the severe inequality in Chinese society.  For what is a village of farmers having to share one donkey compared to embarrassing public toilets?  For we all know every country judges another by the quality of their public toilets.  For few things are so sacred, so personal, as copping a squat when out on the town.

And this is the governing style the Left would have the US follow.  For it is more egalitarian.  Even though the masses must use the worse public toilets in all of Asia while the new Chinese rich no doubt enjoy a squat on the finest porcelain known to mankind.  And probably follow that up with a refreshing bidet cleansing.  No.  This isn’t equality.  This is a toilet aristocracy.  Which simply doesn’t exist under laissez faire capitalism.  Where going to the toilet in public isn’t a privilege.  It’s just so expected in capitalist societies that it is taken for granted.

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The US assures the UN that they Still Plan on Ruining their Economy to Fight Global Warming

Posted by PITHOCRATES - August 11th, 2012

Week in Review

The UN is still trying to impose a carbon trading scheme on the world.  To fight global warming.  Perhaps by 2015.  To make people pay them (or their governments that fund the UN) for burning carbon.  To create an egalitarian world.  With them sitting at the top.  More equal than others (see U.S. affirms support for U.N. climate goal after criticism by Alister Doyle posted 8/8/2012 on Reuters).

Almost 200 nations, including the United States, have agreed to limit rising temperatures to below 2 degrees Celsius (3.6 F) above pre-industrial times to avoid dangerous changes such as floods, droughts and rising sea levels.

The EU Commission, small island states and environmental activists urged the world to stick to the target on Tuesday, fearing that Washington was withdrawing support. Temperatures have already risen by about 0.8 degree C…

Many scientists say the 2 degrees target is getting out of reach because of rising emissions, mainly from burning fossil fuels.

Emissions of carbon dioxide, the main greenhouse gas, rose 3.1 percent in 2011 to a record high. The decade ending in 2010 was the warmest since records began in the mid-19th century, U.N. data show.

Anyone else see the fatal flaw in this plan?  It assumes man alone controls global temperatures.  Which we don’t.  We had the Little Ice Age following the Medieval Warm Period.  It wasn’t glaciers reaching halfway down North America but cool, wet growing seasons reduced harvests.  And caused some famine.  And this was before we burned gasoline in our cars.  And coal in our steam engines during the Industrial Revolution.  Man didn’t cause these global changes.  Man just suffered through them.

And speaking of the Ice Ages, what about the Ice Ages?  Just what made the glaciers advance then recede?  These even preceded man’s use of fire.  So it clearly was something else cooling and warming the planet.  Unless we were a far gassier people back then.  (If so lucky for them there were no open flames.)

The planet warms and cools.  It did so before man burned fossil fuels with a vengeance.  And after man burned fossil fuels with a vengeance.  If the temperature moves a degree in one direction or the other there is absolutely no way to know if that was just a natural change (like through 99.9% of the planet’s existence – including those ice ages) or if it was caused by man (whose been around approximately 0.1% of the planet’s existence).

This isn’t science.  This is politics.  A way for the anti-Capitalists to turn back the hands of time.  And make life truly unpleasant for the masses.  As they produce an egalitarian world.  Where everyone suffers equally.  Except those sitting at the top ensuring the world is fair and just.  As they determine what fair and just to be.  The UN.  The world’s overlords.  Once they control the world’s economies, that is.

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FT112: “You can have liberty or equality but you can’t have both.” -Old Pithy

Posted by PITHOCRATES - April 6th, 2012

Fundamental Truth

Higher Taxes were Okay when it was Someone Else’s Money but they’re Just Plain Unfair when it’s your Money

People throw around the word ‘equality’ a lot.  Especially politicians.  To make life fair.  More egalitarian.  Where they make the rich pay their fair share.  For they won’t just voluntarily pay their fair share, will they?  Sounds fair, yes?  And just.  For no one should be ‘too rich’ when others have ‘so little’.  Of course the only people who agree with this are the ones who have ‘so little’.  Those who are ‘too rich’ are not all that supportive of using their wealth to help others be more equal.  Especially when the scale that measures what is ‘too rich’ is a sliding scale.  For someone believes a person is ‘too rich’ when they have more than he or she does.  And that holds true even if they win the lotto.

It’s open season on rich people.  Everyone attacks them.  For they are easy prey.  There are few of them.  So angering them won’t have a huge impact at the polls.  Which is why politicians whip up a fury of hate against them.  Which the people who have ‘so little’ are eager to join them in that hate.  Because they hate rich people.  They hate them a lot.  And there just isn’t anything good they can say about them.  They hate them so much that they buy lotto tickets in hopes of becoming rich people themselves.  Because that’s the only thing that can assuage their hate of rich people.  Becoming rich people.

People who have ‘so little’ will define anyone as having ‘too much’ if they have more than they do.  But if they win the lotto it’s a different story.  For rich people like them don’t have ‘too much’ then.  In fact they become downright greedy.  And become everything they once hated.  They don’t want to share their winnings.  (Even some in lotto groups who bought a winning ticket will try to keep that ticket for themselves, saying they bought THAT ticket with his or her own money and not the group’s money and therefore they don’t have to share THOSE winnings.)  And they sure don’t want to pay half of their winnings in taxes.  Higher taxes were okay when it was someone else’s money.  But they’re just plain unfair when it’s your money.  It’s just a fact of life.  People are greedy.  Even those with ‘so little’.

If there is No Incentive to Choose the Hard Jobs then Someone will have to Coerce People to ‘Choose’ Them

Consider this.  How hard would you work if you had to deposit your entire paycheck into a general fund?  Let’s call the fund the Equality Fund.  All workers everywhere on payday take their checks to the bank and deposit them into the Equality Fund.  And then they get their ‘equal share’ from that fund to live on.  So doctors and janitors earn different incomes.  But their distributions from the Equality Fund are the same.  NFL franchise players and workers in fast food earn different incomes.  But their distributions from the Equality Fund are the same.  Ditto for movie stars, rock stars, pop stars and lotto winners.  They all deposit their income into the General Fund.  And live on the same money as do hair stylists, Wal-Mart greeters, busboys and gardeners.  Even the people who don’t work.  Who love the Equality Fund.  Because with equality they don’t have to work.  Pretty sweet.  Don’t work.  And get paid the same as those who do work.  So they have no incentive ever to go to work.  And some of those who do work start asking themselves, “Why am I still working?” 

If there was an Equality Fund how hard would you work at your job?  Would you even work?  Would you choose a difficult career field that took a lot of costly education?  Would you work that hard to earn more money only to deposit those high earnings into the Equality Fund?  Instead of using those high earnings to buy a nice house?  In a nice neighborhood?  With nice schools for your kids?  Probably not.  Let’s say everyone is paid $50,000 from the Equality Fund.  Regardless of what you paid into it.  Either nothing.  Or millions of dollars.  Everyone lives on $50,000 per year.  Not too shabby.  Especially for low-income people or the unemployed.  They’re going to love the Equality Fund.  But those paying in millions will not be living in million dollar mansions.  Buying expensive cars.  Big boats.  Fly in their private jets.  Or even fly first-class.  No one will wear a Rolex watch.  Or other expensive jewelry.  Or high fashion.  No one will have these things.  Not when you’re raising a family on $50,000 per year.  Even if your work skills bring in the kind of high earnings that could afford them.  Because all of your pay will go into the Equality Fund.  Is that fair?  It’s equality.  But is it fair?

Let’s take this a little further.  Say everyone wises up and quits working.  Because they get the same amount to live on whether they work or not.  So why work?  Those who would like to tell the boss off and quit working are no doubt saying, “Sounds good to me.”  But this would cause a problem.  For what would you buy with your $50,000 annual allotment if no one worked?  For you need people to work if you want to buy a house.  A car.  A boat.  Fly.  Wear a watch.  Jewelry.  Clothing.  Sure, some will say we can just buy old homes.  And buy imported cars, boats, planes, watches, jewelry and clothing.   Sure, you could.  But you can’t import everything.  You can’t import road maintenance.  You can’t import port facilities and railroad infrastructure.  Or the people to operate them.  You can’t import restaurants complete with chefs, servers and busboys.  You can’t import emergency trauma care.  Maternity care.  Cardiac care.  A college education.  You just can’t import everything.  Someone has to work these jobs.  Even though they won’t get paid any more for working than they would for sitting at home collecting their allotment from the Equality Fund.  And when no one chooses to work at the jobs we can’t replace with imports someone will have to ‘help’ them change their mind.  To make them choose to work.  Even if it’s against their will. 

This is the problem with equality.  If we pay everyone equally no one will choose the hard jobs.  They’ll choose the easy jobs.  Worse, if we pay them equally whether they work or not they’ll simply choose not to work.  And if there is no incentive to choose the hard jobs then someone will have to coerce people to ‘choose’ them.

You can have Liberty or Equality but You can’t have Both

To choose your career you need liberty.  To choose to go to school to learn a high-paying skill you need liberty.  To work in a high-paying job you need liberty.  To keep your high-pay earnings you need liberty.  To work hard and to advance yourself to reach your personal goals you need liberty.  To play in the NFL you need liberty.  To be a movie star or rock star or pop star you need liberty.  To play the lotto and keep your winnings you need liberty.  To do all of these things you need liberty.  And one other thing that makes all of these things possible.  Inequality.

People working in fast food can’t earn the same as neurosurgeons.  Because if they paid their workers that much the cost of fast food would be prohibitive.  And no one would be neurosurgeons because it’s a lot less stressful working in fast food.  It doesn’t take years of training.  Or expensive malpractice insurance.  You don’t have to live with accidents that permanently disable or kill people.  Or deal with their aggrieved family members.  So that’s why we pay neurosurgeons so much.  It’s a very difficult profession that few choose.  Because so few choose this profession those that do are very valuable resources.  Demanding high pay.  And because they demand such high salaries it attracts the few who are willing to deal with all the things that come with being a neurosurgeon.  The high pay helps people choose this valued career despite the high personal costs.  So inequality is a good thing.  It provides incentive to choose the hard jobs.  Which is a good thing.  For who wants a low-paid person forced to be a neurosurgeon operating on his or her brain?

Everyone who has ever bought a lotto ticket agrees that inequality is a good thing.  They wouldn’t buy a ticket otherwise.  Because they buy those tickets to become rich.  To have more than other people.  That is, to be unequal.  Because everyone is greedy.  Just like football players, movie stars, rock stars, pop stars and, of course, lotto winners.  And not a one of them is going to work hard to develop their unique earning potential just to put the fruits of their labor into the Equality Fund.  They may talk the talk.  Support Democrats.  But they do that just so the people who have ‘so little’ leave them alone.  For they all still live in their million dollar mansions.  Because they like being unequal.  The more unequal the better.  They adore their pampered lives.  And when it comes to choosing liberty or equality they choose liberty.  As their comfortable lives clearly show.  For you can have liberty.  Or you can have equality.  But you can’t have both.  And that’s okay with them.

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FUNDAMENTAL TRUTH #34: “Sure, until you win the lotto you’re all for sticking it to the rich.” -Old Pithy

Posted by PITHOCRATES - October 5th, 2010

Money Envy

Class warfare is a different kind of warfare.  During the English Civil War, the Protestants and the Catholics were trying to kill each other.  They didn’t want to have anything to do with each other.  Protestants didn’t want to be Catholic.  Catholics didn’t want to be Protestant.  But in class warfare, it’s a little different.  The poor want to be rich.

The poor hate the rich because they have it so much better than the poor.  But they don’t hate the idea of being rich per se.  Just who gets to be rich.  Because, given half the chance, they’d choose to be rich if they could.  Why?  Because the rich typically don’t go wanting for food, shelter or clothes.  They also get to have all the neat toys to play with.  And they wear some nice bling.

So the poor don’t really hate the rich.  It’s just money envy.  After a child grows up he or she may notice that they like money.  They see they have no money of their own.  So they want their mother’s or father’s money.  Because there are limits, and sometimes outright rejection, they seek money elsewhere.  As they grow up, they may get a job.  Sell drugs.  Prostitute themselves to conventioneers.  Marry into it.  Steal it.  Become a ward of the state.  Or play the lotto.

Whose Money is it Anyway?

During this phase in their life, politicians, college professors and the media bombard them with messages of income redistribution.  Fair share sacrifice.  Taxes on the rich.   And all around fairness.  It all sounds good.  And right.  Those damn rich people.  How dare they?  Why them?  Why not me? 

Well, some inherited their money.  Like the Kennedys.  Some married into it.  Like John Kerry.  They live like rich royalty from days of old.  When there was a true aristocratic class that could actually own people.  But they are there, fighting for you.  Liberals.  Taking away other people’s money and giving it to the more deserving.  And the poor are all for that.

A luxury tax?  Yeah, stick it to them.  An inheritance tax?  Sounds good to me.  How about taxing their assets?  Their net wealth?  Because some of those rich bastards don’t even work.  They invest their money.  Sure, they pay a confiscatory capital gains tax on their earnings, but their earnings pale in comparison to their overall wealth.  We need to go after that pile of wealth.  Redistribute it.  Along egalitarian principles.  Level the playing field.  Close the gap between the rich and the poor.  The way the liberals look at it, it’s the government’s money anyway.  So the government can spread it around as they damn well please.

Poor/Rich – It’s All Relative

Most of these rich bastards are not Kennedys or John Kerrys, though.  Most are self-made.  Through hard work.  And personal sacrifice.  Most are small business owners.  They borrowed everything they could.  They mortgaged their homes.  They risked their children’s college funds.  And they made something.  A small business.  Created jobs.  They hired people.  Something the Kennedys and the John Kerrys of the world don’t do.

Most of these small business owners are ‘S’ corporations.  They aren’t big corporations with corporate officers.  No finance or a legal department.  They’re just people who work 80+ hours a week.  They may never see a million in annual revenue.  But they’ll probably make more than $250,000.  And, being an ‘S’ corporation, that makes them rich.  Even if they leave the money in their business to grow it.  But the IRS still taxes them like they’re rich fat cats lighting their cigars with $20 bills. 

Yes, they’re small business owners.  But they’re still pretty much middle class people.  Do the poor hate them, too?  Sort of.  Simply because they have more than they do.  And the politicians, college professors and the media point out how wrong that is.

Congratulations.  And Thank You

And then one day you buy a lotto ticket and, overnight, you become rich.  Congratulations.  It’s nice to have another rich person to tax.

Yes, you won the lotto and now you’re rich.  How does that feel?  Are you looking forward to redistributing your winnings?  For egalitarian principles?  Help close that gap between rich and poor?  Or have you become a greedy rich bastard?  Like all those others you used to hate until you became one of them?

Whether you do or not doesn’t matter.  For the IRS will be coming after you.  With their hand out.  For their share, a sizeable chunk of your winnings.  Your windfall will push you into the highest tax brackets.  And, guess what?  If you don’t pay your ‘fair share of taxes’ willingly, they’ll come after you.  Or seize your wealth.  And as sad as that may be, few will pity you.  Just as you did not pity those before you were rich.

Be Careful What You Vote For

Class warfare is good for politics.  Because there are always more poor people than rich.  And poor people are useful to someone running for public office.

But they don’t like you.  They don’t really care about you.  They care about only one thing.  To keep you poor.  For should you win the lotto, the chances of you voting for high taxes and income redistribution are slim to none.  Your egalitarian principles will fly out the window.  Which won’t help them.  So should you become rich, they will vilify you.  Come after you with a vengeance.  To take your wealth.  And return it to the rightful owners.  Themselves.  The government.  So they can use it as they please.  To buy votes.

And how will you feel then?  You might want to think about this ‘what if’.  Because you could win the lotto one day.  Inherit wealth.  Marry into it.  Or even earn it.  I mean, be careful what you vote for while in college.  One day you might make something of that education.  You may very well become rich one day.

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