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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The French Socialists to Advance Policies that will drive the Wealth Creators out of France

Posted by PITHOCRATES - July 1st, 2012

Week in Review

No one likes austerity.  Even the nations who agreed to it to join the Eurozone.  Back when they were joining they all said they would keep their deficits and debt within Eurozone requirements.  But after a prolonged recession few are willing to cut back on government spending.  In fact, in France, they’re going to increase government spending by beating up on the rich (see Adieu, la France posted 6/23/2012 on The Economist).

AFTER the French Socialists last came to power in 1981, under François Mitterrand, the new government went on a spree of nationalisations, taking over 36 banks and several industrial groups, before quietly abandoning the policy and even reprivatising a few firms. Small wonder that French bosses greeted François Hollande’s election as president with more than a frisson of foreboding. What would the Socialists do this time…?

Even before the parliamentary elections on June 17th, at which the Socialists won a majority of seats, rhetoric against factory closures had been mounting…

Michel Sapin, the labour minister, has promised to make it so expensive for companies to lay off workers that it will no longer be worth their while. Firms that fire people while still paying dividends may be penalised. Another planned ruse is to force companies to sell factories, presumably along with the brands manufactured there, to competitors rather than close them down…

[The Socialist] party’s most popular campaign promises was to tax incomes of more than €1m at a marginal rate of 75%. The likely consequences will be much less admired. Some big companies will leave France or move management abroad in order to shield their executives from the tax. That will lead them to invest and hire more overseas rather than at home. Already, top foreign executives no longer want to join French firms. A new extra tax on dividends has further angered the business world…

But the most important consequence of stratospheric taxes will be less visible, at least at first. Marc Simoncini is one of France’s best-known entrepreneurs—and one of the few business leaders to denounce the new measures publicly. Why, he recently asked, would anyone want to start a business, invest and succeed in the most taxed country in the world?

Tax is not the only threat to executive pay. Last week Pierre Moscovici, the finance minister, announced that pay for bosses of companies in which the French state holds the majority of shares will be capped at a flat rate of €450,000, or roughly 20 times the wage of the lowest-paid worker… In some cases it will lead to a 70% pay cut… Measures to limit pay at fully private firms are expected before long.

Most French business leaders don’t think that the government is deliberately targeting them. They reckon that its motives are purely political—and that the Socialists are simply not aware of the damage their plans will do (most ministers have hardly any experience of business).

Behold class warfare on a grand scale.  This is socialism.  This is what being ‘fair’ is.  This is egalitarianism.  Everyone is equal.  Except the rich and successful.  Who the state enslaves.  To serve the people.  By forcing these executives to continue to do what so few people can do.  Run these big corporations profitably.  But they won’t reward them for their unique talents.  No.  Instead, they’ll enslave them.  Force them to keep producing wealth.  To keep creating jobs.  But to do so for a paycheck that’s less than most sports stars, movie stars, singers, writers, reality stars, etc., get.  Because these executives don’t earn their pay like these people who contribute so much to the world’s economies.

The Socialists believe these rich executives don’t do anything worthy for their pay.  That these corporations run themselves and only create wealth because of the workers in the trenches.  These are the important people.  Of course if they don’t need these rich executives why not just fire them?  Let these corporations spontaneously produce wealth and create jobs?  Because even the Socialists know that these rich executives are the only ones who can run these corporations and produce the wealth they so want to confiscate.  And if they fired these rich executives and tried to run these corporations themselves there would be no wealth to confiscate.  Because they have no business experience.  And they would only run these companies into the ground.  Just like the Soviet state planners did in the Soviet Union.

How did they get here?  Their social democracies.  Cradle to grave state welfare.  The people like it.  They love the free stuff.  The problem is it’s free only to them.  Someone has to pay for it.  Primarily those who work for the rich executives.  And the rich executives themselves.  Via confiscatory tax rates on the wealth they create.  But as they drive out these wealth creators from the country what will they tax?  As populations age there are more people consuming government benefits than there are paying for them.  Which means they need to raise tax rates ever higher.  Going so far as to nationalizing businesses.  Eventually there comes a point where even class warfare won’t work anymore.  Because there just won’t be enough wealth left in the country to tax.

These policies are not likely to make things better in France.  It may feel good for a little while to punish the rich.  But punishing the rich won’t reduce your taxes.  Or improve the economy so you can advance into a better and higher paying job.  But it makes good politics.  Which is why these politicians can win elections.  In Europe.  And in the United States. 

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If Taxing the Rich won’t Reduce the Deficit then it’s not Tax Reform, it’s Class Warfare

Posted by PITHOCRATES - September 25th, 2011

The Rich are Paying Far More in Taxes than People like Warren Buffet’s Secretary

It’s tax reform.  It’s not tax reform.  They may not have their story straight.  But this much we know.  Obama’s Warren Buffett tax will do nothing for deficit reduction.  But it sure will fan the flames of class warfare (see WH self-contradicts, admits tax hikes arent reform by Joel Gehrke posted 9/25/2011 on The Washington Examiner).

President Obama and White House Senior Adviser David Plouffe have adopted contradictory rhetoric regarding  President Obama’s proposed tax increases, which the president has touted as “tax reform…”

Plouffe responded that “the president would like to do tax reform . . . But absent tax reform,  the president believes the right way to get our fiscal house in order is to ask the wealthy to pay their fair share.”

So according to Plouffe, raising taxes isn’t tax reform.  It’s to punish the rich.  That’s what making them ‘pay their fair share’ means.  Even though, right now, they’re paying more than their fair share.  Far more.  (More on that later.)  Obama, though, sees it differently.  And the way he sees it punishing the rich is reforming the tax code.

When two people can’t get their story street it typically means one thing.  They’re lying.  And can’t keep their stories straight.

Now, the Republicans say they’re in favor of tax reform.  Let’s go.  Let’s reform this tax code.  And let’s reform it based on a very simple principle:  Warren Buffett’s secretary should not be paying a higher tax rate than Warren Buffett. It’s a simple principle.

Why not?  Warren Buffett is still paying more tax dollars.  The rich are paying far more in taxes than people like Warren Buffet’s secretary.  So why keep saying this?  Can be for only one reason.  To punish the rich.  And to show the people that you want to vote for you that you’re punishing the rich.

Wallace pointed out to Plouffe that “the top 10 percent pay 70 percent of federal income taxes. Meanwhile, 46 percent of households pay no federal income tax at all.” Plouffe countered that “you can manipulate the statistics in any way you want,” and also said that “they are making a ton of money” while “we have inequities,” presumably in the tax code. And then Plouffe offered what would qualify as an argument for tax reform, except that Plouffe is admittedly not pushing for tax reform:

The American people are screaming out saying it’s unfair that the wealthiest, the largest corporations who can afford the best attorneys, the best accountants, take advantage of these special tax treatments that the lobbyist have, along with lawmakers, have cooked in the books here. So, the question is: how are we going to move forward as a country?

Wallace interjected, “Because 70% isn’t enough?”

For tax revenue?  Yes.  That 70% should be enough.  Perhaps too much.  But for class warfare?  No.  Because there’s a lot more money they can take from the rich.  And the more they take the more votes they gain from that 46% that doesn’t pay any federal income taxes.

It’s not that the President is Losing White Independents.  It’s just that Blacks Refuse to Give Up on Obama.

So why the class warfare?  Because it’s election time.  And when you don’t have a good record you don’t win reelections running on that record.  So you don’t.  Instead, you go class warfare.  Pit one group against the other.  Find narrow slices of the population that you can turn against your political opposition.  And, if you get enough of these slivers, you may just have a chance at reelection.  Despite your horrible record while in office (see Obama 2012 campaign’s Operation Vote focuses on ethnic minorities, core liberals by Peter Wallsten posted 9/25/2011 on The Washington Post).

President Obama’s campaign is developing an aggressive new program to expand support from ethnic minority groups and other traditional Democratic voters as his team studies an increasingly narrow path to victory in next year’s reelection effort.

The program, called “Operation Vote,” underscores how the tide has turned for Obama, whose 2008 brand was built on calls to unite “red and blue America.” Then, he presented himself as a politician who could transcend traditional partisan divisions, and many white centrists were drawn to the coalition that helped elect the country’s first black president.

The problem is that Obama is about as partisan as they come.  That’s why the tide has turned against him.  A lot of people hated George W. Bush.  And thought Obama was going to bring in the love.  Make the country as a whole link arms and sing Kumbaya.  But that hasn’t happened.

He spent more than George W. Bush.  Giving us record deficits.  And he keeps blaming his spending on the rich not paying their fair share of taxes.  The people see what’s going on, though.  They’re not blind.  It’s his spending.  Not a lack of taxes.  And all that spending hasn’t done a thing to help the economy.  The economy was, after all, far better under George W. Bush.  So they’re seeing the same old tax and spend liberal.  Not the candidate that was going to get us all to link arms and sing Kumbaya.

But not everyone is turning against this president.  The blacks haven’t turn on him.  They would have but for one reason.  He’s black.  The black community is furious with him.  But they still can’t abandon him.  As the chair of the Congressional Black Caucus, Maxine Waters, said in Detroit.  “If we go after the president too hard, you’re going after us. When you tell us it’s all right and you unleash us and you’re ready to have this conversation, we’re ready to have the conversation,” Waters said.

Today, the political realities of a sputtering economy, a more polarized Washington and fast-sinking presidential job approval ratings, particularly among white independents, are forcing the Obama campaign to adjust its tactics.

Operation Vote will function as a large, centralized department in the Chicago campaign office for reaching ethnic, religious and other voter groups. It will coordinate recruitment of an ethnic volunteer base and push out targeted messages online and through the media to groups such as blacks, Hispanics, Jews, women, seniors, young people, gays and Asian Americans.

It’s not that the president is losing white independents.  It’s just that blacks refuse to give up on Obama and join the exodus from him.

When you’ve been a poor president.  When your policies have made things worse.  There’s only one thing you can do.  You do everything to divide the American people.  Drive wedges.  Find reasons.  Why blacks should hate Republicans.  Why Hispanics should hate Republicans.  Why women should hate Republicans.  Why seniors should hate Republicans.  Why young people should hate Republicans.  Why gays should hate Republicans.  Why Asians should hate Republicans.

When you have failed you become what you said you weren’t.  Or stop pretending to be something you never were.  And you incite hatred.  Fan the fires of class warfare.  You pursue policies that further divide the American people.  Even if those policies hinder the economic recovery.

The campaign officials say they have not given up on wooing independents, and the 2012 presidential election will certainly involve a fierce fight for the college-educated whites and suburbanites who were more likely to back Obama in 2008 than the working-class whites who have always been more skeptical.

By ‘college-educated’ they mean ‘favorably-educated’.  Universities lean left.  Continuing the work of the public school teachers.  Both of who depend on government funding.  And growing tax rates.  So they need government to grow.  And will always vote for the party that will grow government.  And will ‘teach’ their young students to do the same.

Working-class people, on the other hand, have spent more time in the real world.  They’ve had a chance to get deprogrammed from their public school indoctrination.  That’s why it’s harder to fool the working-class.

When you’ve ‘Jimmy Cartered’ the Economy you can’t Run on your Record

It’s election season.  Little more than a year to go before the 2012 election.  So candidate Obama is back.  Running like he wasn’t the president for the last 3 years or so.  Somehow trying to explain to his most loyal base that he’s made things better than his predecessor.  George W. Bush.

But he hasn’t.  However you measure it.  GDP.  Unemployment rate.  Consumer confidence.  Whatever.  And the kicker is that the cause for the Subprime Mortgage Crisis that started under Bush wasn’t caused by Bush.  Putting people into houses they couldn’t afford was a liberal Democrat policy.  So housing wasn’t exclusive to only those who could afford a house.  Policies the Obama administration favors.  And policies that they want to implement again.  Despite having just suffered the Subprime Mortgage Crisis because of those policies.  Why?  Because it gets you more votes at election time.

So when you’ve ‘Jimmy Cartered‘ the economy you can’t run on your record.  The best you can hope for is to paint your political opponent as being everything the slivers of your most loyal base hate.  Attack the rich.  And promise more free stuff to that 46% that doesn’t pay any federal income taxes.

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