The Redistribution of Wealth in Obamacare

Posted by PITHOCRATES - December 30th, 2013

Economics 101

“Wait a tic.  Blimey, this redistribution of wealth is trickier than I thought.”

Monty Python is a British comedy troupe.  Starting off with a television show in 1969.  And ending their run together with a movie in 1983.  With some other stuff along the way.  They became about the biggest stars ever in comedy.  They redefined comedy.  And have influenced some of the biggest names that followed them.  Part of the reason why Monty Python is so funny is that they are so serious when being silly.  And they are very well educated.   With some members having degrees from Oxford and Cambridge.   Which helps make their humor different.  Such as their take on Robin Hood with a character they called Dennis Moore.

Dennis Moore, Dennis Moore
Galloping through the sward
Dennis Moore, Dennis Moore
And his horse Concorde
He steals from the rich
And gives to the poor
Mr. Moore, Mr. Moore, Mr. Moore

This is the opening verse of a song in the sketch Dennis Moore.  The character steals from the rich who have more than they need.  And gives it to the poor who don’t have enough.  A classic example of redistribution of wealth.  Something the American left is all about.  Being Dennis Moore.  Or Robin Hood.  But in the sketch Dennis Moore takes it to the extreme.  Stealing so much from those who were originally rich that they have nothing left but their underclothes.  While those who were originally poor have everything the rich had.  And the formerly poor (now rich) get ever more demanding of Mr. Moore for better stuff.  As he rides off to please these formerly poor (now rich) we hear the following verse.

Dennis Moore, Dennis Moore
Riding through the land
Dennis Moore, Dennis Moore
Without a merry band
He steals from the poor
And gives to the rich
Stupid bitch

Dennis Moore halts his horse.  And asks the chorus to repeat themselves.  To make sure he heard what he thought he heard.  They do.  Mr. Moore then says, “Wait a tic.  Blimey, this redistribution of wealth is trickier than I thought.”  As he discovers some of the inherent flaws in the redistribution of wealth concept.  Excessive redistribution can take large sums of money away from some.  Which doesn’t help them.  It only punishes them.  And if you’re okay with punishing the rich to help the poor note what happens to the poor when they get the rich’s money.  They become exactly like them.

Buying Votes to Win Elections works as long as you Tax the Few to Spend on the Many

This sketch is funny.  Because it’s true.  You’ve heard the expression “beggars can’t be choosey?”  Well, when it comes to the redistribution of wealth, they can.  And are.  Choosey.  They can become very demanding.  And the more they get the more they want.  And the more like the people they hate and envy—the wealthy—they get.  Mr. Moore learned that.  Where the poor he was trying to help with a hand-up didn’t use it for a hand-up.  They just used the rich’s wealth to enjoy the good life without working and earning it over time.

People may look down on those born into money but that’s only because they weren’t.  This is why poor people buy lottery tickets.  To get rich quick.  Because they don’t want to wait to have money.  They’d like to have it when they’re young.  And not wait until they’re old.  After working 20 years or so.  Which is why selling the idea of wealth redistribution is so easy.  And helps politicians win elections.  Because there are more poor people than rich people.

President Obama said those who could afford it should pay a little more.  Taxes.  To balance the playing field.  To offer a ‘hand-up’ to the poor.  This is the message of the Democrats.  Tax and spend.  Tax the rich.  And give it to the poor.  And the young.  Such as free birth control, tuition assistance, Obamacare subsidies, etc.  Things they tax the rich for.  To get the poor to vote Democrat.  It’s a working formula.  Buying votes.  As long as you tax the few to spend on the many.  Because you need the many to win elections.

Obamacare won’t Work because the Welfare flows in the Wrong Direction

The welfare state taxes the few/rich/old to spend on the many/poor/young.  Which is why it worked.  You angered a smaller group of people than you pleased.  And if you can keep doing that you can keep winning elections.  As long as you keep playing Dennis Moore.  Without being a stupid bitch.  Which the Democrats did well.  Until Obamacare.  The Affordable Care Act.

Obamacare will fail because unlike other welfare programs Obamacare is unique.  For it does not tax the few/rich/old.  It actually taxes the many/poor/young.  To pay for the health care of those who have more money than they do.  The old and sick.  Leaving the young and healthy with less money to start their families.  As they help the old and sick who already had their families.  And something just isn’t right with this picture.  The old and sick are fine with it.  While the young and healthy are calling someone ‘stupid bitch’.  Figuratively, of course.

Young people don’t have a problem with tax and spend.  As long as they are the recipients of those welfare transfers.  So they vote Democrat.  And they also vote Democrat because they are the opposite of their parents.  Who never tell them they can’t do this or that.  But, instead, tell them they should do whatever they feel like doing.  Which they like.  A lot.  But the Affordable Care Act is a whole different animal.  Where Democrats are being like parents.  Telling the young Democrat voters that they can’t do everything they want to do.  Because they’re forcing them to buy something they don’t want.  Which isn’t their parents’ welfare program.  From the few/rich/old to the many/poor/young.  But more of a welfare program for their parents.  Making it more difficult for the young Democrat voters to embrace Obamacare.  Which is why they aren’t.  And why the math won’t work for Obamacare.  Because the welfare flows in the wrong direction.

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Cash Piñatas and Obamacare

Posted by PITHOCRATES - October 28th, 2013

Economics 101

Health Insurance provides Financial Protection from Risk unlike Obamacare

A lot of people are talking about Obamacare.  The poor website launch.  People losing the insurance policies and doctors they liked and wanted to keep.  Higher insurance premiums.  And higher deductibles.  All of which conflicts with what President Obama had promised.

So there are problems.  And people are becoming less enamored with Obamacare now that it is personally touching their lives.  But there is a bigger problem.  Obamacare isn’t insurance.  And that’s what a lot of people don’t even understand.  Even some insurance agents.  Who may only see those higher premium prices and think Obamacare is a one-way ticket to easy street.  But if you understand insurance, economics and history you’ll see it’s not.  So what is insurance?  Here’s a definition from Investopedia:  

A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured.

The key word in this definition is ‘risk’.  Insurance provides financial protection from risk.  Obamacare doesn’t do that.  It forces people to pay for things they have no risk exposure to.  For example, an older couple with adult children still needs pediatric coverage on their policy.  Which just increases the cost of their insurance.  While providing no financial protection from this particular risk.  Sick children.

Premiums and Deductibles are Soaring to herd the Young and Healthy into the Government Exchanges

So why is Obamacare raising health insurance premiums?  To pay for people who don’t pay into the insurance pool.  The poor.  And the very sick who can’t afford health care let alone health insurance.  The higher premiums people are paying go to them.  This is a cost transfer.  From a higher income group to a lower income group.  Or in other words, a redistribution of wealth.  From those according to ability to those according to need.

So the president wasn’t exactly telling the truth about keeping your insurance and doctor if you wanted to.  This can’t happen under Obamacare.  Because to redistribute wealth you need to take it away from someone.  And guess who that someone must be to make Obamacare work?  The young and healthy who are buying health insurance.  Those people who pay into the insurance pool for financial protection from risk.  But who are generally healthy and receive no benefits from the insurance pool.  Who President Obama and the Democrats look at as cash piñatas.  Which they can’t whack open if they have private insurance policies.

This is why these people must lose the policies and doctors they like.  And why premiums and deductibles are soaring.  To herd these cash piñatas into the government exchanges.  Where the government can collect their insurance premiums.  And redistribute it.  While those high deductibles keep those premiums going out as benefits to the cash piñatas to a minimum.

The Young and Healthy choosing Medicaid over Obamacare

Of course, there is a flaw in this grand strategy.  Arrogance.  The government believing that young and healthy people will just stand there while the government whacks them open to get their cash.  Which they aren’t.  And it’s just not because the Obamacare website is a disaster.  It’s because a lot of these people are choosing Medicaid.  The health care program for the poor.

Medicaid enrollments are far outpacing Obamacare enrollments.  By a huge number.  Which is a big problem.  Because Medicaid enrollees don’t pay insurance premiums.  And they are not subject to deductibles.  Because they are poor and can’t afford to pay anything out of pocket.  So instead of adding to the insurance pool these cash piñatas will take from the pool.  And that won’t change when they fix the broken website.  Which is why it is a fatal flaw.

Compounding this problem is the President’s economic policies that have given us the worst economic recovery since that following the Great Depression.  Since President Obama assumed office his policies have forced approximately 10 million people from the labor force.  Unemployed, it is unlikely that they will be able to afford health insurance.  And probably will enroll in Medicaid, too.  If they haven’t already.  So Obamacare isn’t going to work as-is.  The question is, what will they do next?  Other than blame the greedy insurance companies?  Whose cooperation in this redistribution of wealth scheme will lead to their own demise.  For as more and more people can’t afford those expensive insurance policies they’ll either turn to Medicaid.  Or demand national health care.  Which people don’t need insurance companies to have.

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Obama wants a Millionaire Tax to Pay for his Political Stimulus Bill and Shrink his Deficit

Posted by PITHOCRATES - September 17th, 2011

Going Green is Just Another Excuse to Raise Taxes, Grow Government and Transfer more Wealth from the Private to the Public Sector

Big government has big ideas.  And big taxes to pay for them (see Crippling energy bills are YOUR fault, says Huhne as he claims families could treat themselves to a mini-break if they shopped around by Glen Owen and Jonathan Petre posted 9/17/2011 on the Daily Mail).

Utility price rises have pushed the average household energy bill to almost £1,300 a year, partly driven – as critics pointed out yesterday – by ‘green’ taxes imposed by Mr Huhne’s [Energy Secretary] department.

The stealth levies, introduced to fund Britain’s investment in wind and solar power, are costing families an average of £200 a year…

This represents an increase of between 15 and 20 per cent on the average domestic power bill. The money is being used to help fund the building of 10,000 wind turbines and the proposed installation of £7 billion worth of smart meters in homes.

To make your tomorrow better we will make your today worse.  You’re welcome.

Green energy may be good for the planet.  To combat ‘global warming’.  But it’s not good for your wallet.  Or purse.  And the kicker is this.  What kind of science is global warming based on?  Fraudulent science.  And if this doesn’t tell you why governments are pushing for green energy nothing will.

It’s about the money.  It always is.  And always was.  It’s another excuse to raise taxes.  To grow government.  And transfer more wealth from the private to the public sector.  So politicians can play god.  Which is something narcissists are wont to do.

Higher Tax Rates Discourage Growth, Deter Investment, Kill Jobs and Prolong Recessions

That was in the UK.  Over in the USA their government is going green, too.  Because there’s big money in going green.  They recently invested a half billion dollars in Solyndra.  President Obama visited the plant.  Vice President Joe Biden made a video clip praising those 1,000 new jobs.  That were permanent jobs.  And they were.  Right up to that mass layoff.  As the company went belly up this month.

But it was good while it lasted.  Throwing around such massive amounts of money.  Having the power to pick winners and losers.  It really strokes a narcissist’s ego.  Even if their winners turn out to be losers.  I mean, it’s not like they have to repay that half billion dollars.  They’ll just turn to the taxpayers for more taxes.  And blame the rich for not paying their fair share (see Obama Tax Plan Would Ask More of Millionaires by Jackie Calmes posted 9/17/2011 on The New York Times).

President Obama on Monday will call for a new minimum tax rate for individuals making more than $1 million a year to ensure that they pay at least the same percentage of their earnings as middle-income taxpayers, according to administration officials…

Mr. Obama, in a bit of political salesmanship, will call his proposal the “Buffett Rule,” in a reference to Warren E. Buffett, the billionaire investor who has complained repeatedly that the richest Americans generally pay a smaller share of their income in federal taxes than do middle-income workers, because investment gains are taxed at a lower rate than wages.

We should note, though, that it’s not the size of the rate that matters.  But the pile of money that it taxes.  Someone earning $60,000 a year with a top marginal tax rate of 25% may pay a puny $11,000 in taxes.  But someone with a 15% tax rate on an investment return of $40 million will pay an obscene $6 million in taxes.

Now, in case you’re not good with math.  Or you are a liberal Democrat.  Let me help.  $6 million is more than $11 thousand.  A lot more.  About 54,000% more.  The rich person may pay a lower tax rate.  But he or she pays more tax dollars.  Way more.

The rich pay more.  The less-rich pay less.  The rich pay for benefits.  The less-rich consume benefits.  We take money from the rich.  And give to the less-rich.  Sounds like redistribution of wealth, doesn’t it?  So you can see this is less about paying your fair share of taxes then it is about redistributing wealth.  To garner more votes come election time.

The Obama proposal has little chance of becoming law unless Republican lawmakers bend. But by focusing on the wealthiest Americans, the president is sharpening the contrast between Republicans and Democrats with a theme he can carry into his bid for re-election in 2012…

Mr. Obama’s proposed Buffett Rule puts a new spin on that pitch, as he tries to put Republicans in Congress and in the presidential race on the defensive for their rigid stand against higher taxes.

Using class warfare for the 2012 election.  Why?  Because he sure can’t run on his record.  For his record sucks.  His economic policies have been a disaster.  And are on track to put us back into recession.

So he will employ this ploy.  To make the Republicans look like heartless bastards.  Protecting their rich patrons.  While the rest of the nation suffers the ravishes of the Obama recession.  A recession Obama blames, of course, on George W. Bush.  That rich Texan oilman.  Despite that Recovery Summer in 2010.  When he, Barack Obama, ended the Bush recession.

Mr. Obama has been citing Mr. Buffett as he promotes his $447 billion job-creation plan. He proposes to offset the cost of that plan and reduce future budget deficits through higher taxes on the wealthy and on corporations after 2013, when the economy will presumably be healthier.

Ah, yes, his political stimulus bill.  That thing he calls the American Jobs Act.  Which no Congress person has yet to introduce into the House of Representatives.  Including no Democrat.  Which is telling.  Next year is an election year.  And the way this bill reeks of politics they want nothing to do with it.

Rich people invest their wealth.  They may buy corporate bonds.  Which will allow a business to grow.  Create jobs.  And you know nothing helps that process more than higher taxes.  You know, if you’re living in insanity land.

Higher tax rates don’t make economies healthier.  They make them sicker.  They discourage growth.  They deter investment.  They kill jobs.  And prolong recessions.  The economy will not be healthier in 2013.  Not with higher tax rates on the very people that can make it healthier.

Even Mr. Buffett probably paid a higher effective rate than he claimed, Mr. Mankiw [an economics professor at Harvard] added, because much of his income came from corporate income that had been taxed before it was paid out to individuals.

That’s right.  The money Mr. Buffet earns on his investment?  Uncle Sam already taxed it.  At the corporate income tax rate.  His tax is the second tax paid on those earnings.  Which begs the question how much is enough?  How much of our money is enough for the government?  And the answer is no matter what we pay it will never be enough.

The Danger of Raising Taxes on the Rich is that it doesn’t Address the Problem of Excessive Spending

We pay enough in taxes.  In fact, we pay too much.  The government is just spending too much.

The problem is baseline budgeting.  And tax and spend liberalism.  Not only are they spending a lot today but they will be spending even more tomorrow.  More programs.  More benefits.  Guaranteed.  At least they’re guaranteed as long as we continue to use baseline budgeting.  Where this year’s budget is last year’s budget plus more.  Automatically.

And this is the danger of raising taxes on the rich.  It doesn’t address the problem.  This excessive spending.  In fact it facilitates it.  Like an addiction.  Which means they will make this argument forever.  As they have forever.  The problem is this.  There will never be enough taxes.  Not to sustain continuous increases in spending.  Which we will always have.  As long as we continue to use baseline budgeting.  And continue to elect liberal Democrats.

If the current system favors the rich then here’s a novel idea.  Tax the less-rich at the rich tax rates.  Then everyone pays their ‘fair’ share.  But what about government you may ask.  How will they get by on less?  Well, that’s easy.  They can ask any one of us.  Because we’ve been doing it for years.

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FUNDAMENTAL TRUTH #62: “The government’s great dilemma is that the middle class has both the money and the votes.” -Old Pithy

Posted by PITHOCRATES - April 19th, 2011

Figures don’t Lie but Liars Figure

Mark Twain said figures don’t lie but liars figure.  And there’s been a lot of that going around.  Lying.  Especially about taxes.  Where the rich just can’t catch a break.  They pay far more tax dollars than the poor/middle class.  Yet you wouldn’t know that based on the political rhetoric coming from the Left.  And the incessant drive to raise the top marginal tax rates.  To make the rich pay their ‘fair’ share.  Or punish them.  For being rich.  So we can lower the tax burden on the little guy.  The working class people struggling to put food on the table for their families.

Of course, anyone taking the time to crunch the numbers, or read a history book, will see something completely different.  And that the Left can only advance their agenda by lying.  Because people with a job want to keep their job.  And they see the Left’s agenda as anti-business.  And job killing.  Anytime you hear government talk about being ‘fair’ look out.  Chances are you are about to be screwed.  For their idea of fairness and equality is truly Orwellian.  The Left’s idea of equality is when they are more equal than everyone else.

So they champion the poor/middle class.  Say they are looking out for their interests.  But they’re not.  They just want their money.  And their votes.  So they’ll say whatever they think they want to hear.  Anything to maintain their positions in government.  The ruling elite.  And one of their most effective tools is class warfare.  At the heart of which is tax policy.

Taxing the Rich Transfers Tax Burden to the Middle Class

There is a fundamental misunderstanding about tax policy in America.  Everywhere, really.  You see, they’ve beaten it into our heads that the way to get the rich to pay their fair share is to increase their tax rates.  You do that and you transfer the tax burden from the poor/middle class to the rich.  The funny thing is, though, when you raise the tax rates on the rich the exact opposite happens.  You transfer the tax burden from the rich to the poor/middle class.  How can this be, you ask?  Well, let me explain.

Consider two income examples.  Someone who makes $50,000 per year.  And someone who makes $1,000,000 per year.  Based on the 2008 tax tables (with a top marginal rate of 35%), the federal income tax each pays is approximately $16,980 and $454,000, respectfully.  Now, what do you notice about these numbers?  That’s right.  The $454,000 is a lot bigger than the $16,980.  It’s over 26 times the amount of taxes the person earning $50,000 pays.  Now think about that.  If only one more person becomes a millionaire (let’s say an entrepreneur quits his day job and creates the next great invention), the government will collect the same amount in taxes it would take from 26 new $50,000/year jobs added to the economy.  Let’s say 2 venture capitalists strike it rich and both become millionaires.  They would add the same tax revenue it would take 52 new $50,000/jobs to generate.  Three new millionaires = 78 new $50,000 jobs worth of taxes.  See a pattern?  The more millionaires there are paying taxes the less the poor/middle class have to pay in taxes.  Or, conversely, the fewer millionaires are paying taxes the more the poor/middle class have to pay.  So the more millionaires there are paying taxes, the more the tax burden transfers from the poor/middle class to the rich.

Well, based on that, the best thing we can do for the poor and middle class is to make as many millionaires as possible.  And how do you do that?  It’s pretty easy.  Sort of like a dog having puppies.  They already know how to do it.  They don’t need any special help.  All they need is for us to get out of their way.  And give them a business-friendly environment.  Where a small business owner will risk his or her life savings on that business to get rich.  Or a venture capitalist will risk his or her money on an untried entrepreneur with a really good idea to get rich.  And how do you get people to take risks and invest large sums of money?  By giving them a chance to get rich in the process.  And you don’t do that with high tax rates.  Because high tax rates increase the ‘cost’ of these investments.  And when the cost gets too high, they look for other things to do with their money.  If the return on investment is taxed to the point that they can make the same return without any risk, they won’t take any risk.  And just leave their money in the bank.

The more Millionaires we have the Less Taxes the Middle Class Pays

Of course this all makes good sense.  But bad politics.  Especially on the Left.  For they are all about fairness and redistribution of wealth on the Left.  And you can’t be fair and redistribute wealth unless you demonize the rich.  Because you have to take wealth from someone before you can redistribute it.  And who has wealth?  Why, the wealthy, of course.  Who are greedy.  Who don’t pay their fair share of taxes.  And profit by exploiting the poor/middle class.  Or so goes the liberal mantra.  So to show how much they care for the poor/middle class, they try to raise taxes on the rich.  By constantly trying to raise the top marginal rates.  Of course, as noted above, doing this actually hurts the poor/middle class.  By making them pay a much larger share of the total tax burden than the rich pays.  Let’s look at some numbers.

We keep hearing about this evil 1% who has the majority of the wealth in this country.  So let’s look at this by the numbers.  One percent is one in one hundred.  So let’s assume we have 100 taxpayers.  One millionaire who earns $1,000,000 per year.  Twenty ‘poor’ people earning $15,000 per year.  And 79 ‘middle class’ people earning $50,000 per year.  Based on the 2008 tax tables, the annual income tax each owes (going from poor to rich) is approximately $4,500, $17,000 and $454,000.  Their total tax contributions (in the same order) are approximately $91,000, $1,342,000 and $454,000.  Or, as a percent of the total, 4.8%, 71% and 24%.  Please note that it’s the middle class that pays the bulk of the tax burden (71%).  Even though they each pay only a fraction of what the millionaire pays.  Because one millionaire can pay only so much.  But the ‘fraction’ 79 middle class people pay adds up.  The sum total of their taxes equals approximately three times what that millionaire pays.  Which proves the point that the fewer millionaires there are the more the poor/middle class has to pay in taxes.

Now let’s say nine people prospered very well and moved from the middle class to the rich.  There are still 20 ‘poor’ people.  But with the 10 people that now earn $1,000,000 per year, there are now only 70 middle class people earning $50,000 per year.  This changes the total tax contributions (going from poor to rich) to approximately $91,000, $1,187,000 and $4,538,000.  Or, as a percent of the total, 1.6%, 20.4% and 78%.  Now the rich are paying the vast majority of all taxes (78%).  Which proves the point that the more millionaires there are the less the poor/middle class have to pay in taxes.

Figures don’t Lie but Liberals will Figure

Well, sure, you can use all your facts and figures to show things that make sense.  But making sense doesn’t necessarily apply in politics.  Because tax policy is a lot more than just funding the government.  It’s about winning elections.  And the one great dilemma in all of politics is this.  The people with the most money to tax are in the middle class.  Because of their numbers.  They may pay less per person than the rich but their numbers add up.  And they are the largest voting bloc.  Because of their numbers.  Which presents quite the problem.  Politicians want their money.  But if they take too much of it they may lose their votes.  So what to do?  You take their money.  While making it look like you’re punishing the rich.

The more government spends the greater this problem gets.  Deficits grow larger.  Which adds to the national debt.  Interest payments on that debt take up an ever larger part of the federal budget.  Add that to out of control growth of entitlement spending and what do you get?  A big problem.  And greater deficits.  Which are getting harder and harder to finance.  Soon you’re borrowing money to pay your borrowing costs.  You need cash.  Or you need to cut spending.  And you know you’re not going to do that.  Because cutting spending doesn’t help win elections.  So you look for more cash.  And you can’t go the easy route and just create more millionaires.  Not after demonizing them so much.  Doing that would be tantamount to saying you were wrong and/or lying all these years.  Besides, the anti-business environment currently in place doesn’t encourage any risk taking by the rich.  So they’re sitting on their money.  Which leaves the middle class.  So we start hearing code words.  Fair share sacrifice.  Tax the rich.  It’s not fair to give millionaires and billionaires tax breaks paid by the poor and middle class.  This means the poor/middle class is about to get screwed.  Either by higher taxes (or reduced tax breaks and credits).  Or they’re going to raise the top marginal tax rates which will transfer more of the tax burden from the rich to the poor/middle class.

Of course, screwing the poor/middle class is what it’s all about.  The Left uses them.  All of the time.  Through lies and deceit.  For our lives would be better if we had a lot more millionaires.  And less progressive tax rates.  That encouraged more economic activity.  And created more jobs.  But the liberal left could care less about that.  Based on the evidence.  And history.  When they run for office they run as moderates.  Because they know they can’t win elections running as liberals.  Barack Obama was the most liberal senator in the Senate.  Yet when he ran some were comparing him to Ronald Reagan.  And you only lie like that for one reason.  To hide who you really are.  Tax and spend liberals.  Who have made the middle class the bank for their tax and spend policies.

So while figures don’t lie, liberals will figure.

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FUNDAMENTAL TRUTH #44: “Liberal Democrats have to lie because there are more taxpayers than tax consumers.” -Old Pithy

Posted by PITHOCRATES - December 14th, 2010

Tax and Spend and Do as I Say

Liberal Democrats like to tax and spend.  And they are also so full of themselves that they like to tell other people how to live their lives.  Because they think they are smarter than us.  And know what’s best for us.

Funny thing.  A lot of these liberal Democrats are rich.  Like Nancy Pelosi and her San Francisco constituents (you need to be rich to live in her neighborhood).  Though they’re rich they prefer to spend other people’s money.  And spend a lot of it.  They take the concept of ‘redistribution of wealth’ to new heights.  As long it’s other people’s wealth, that is.

Not many agree with them.  Liberal Democrats make up about 20% of the electorate.  So theirs is a minority opinion.  Which can be a problem when you want to tax and spend.  Because that other 80% tend to have real jobs.  Which means they pay the taxes that liberals like to spend.  And they’re none too keen on giving up their hard-earned money so a bunch of rich liberals can assuage their guilt for being rich.

Democracy Ruined the Good Old Days for the Privileged Classes

Being a 20% minority has its problems.  Especially when you want to tell how the other 80% should live.  They lament that we live in a democracy.  Where people have the right to vote.  Unlike in the good old days.  Where your blood determined rank and privilege.  There were no questions asked.  You did what you want.  Because you could.  And there was no voting.  No silly inconvenience of elections.  No, back then the rich and privileged classes knew how to live.  And the suffering masses knew their place.

But, alas, the miserable Founding Fathers had to go and muck all of that up.  Liberty.  The biggest pain in the ass the entitled classes ever had to deal with.  Nowadays, the privileged just can’t do what they want.   You need to win elections.  They need to get others to vote their way.  They need others to agree that their living the good life is in the best interest of the country.  And how do they do that?  They lie, of course.  And make as many people as possible dependent on their generosity.  Their generosity with other people’s money, that is.

Of course, it wasn’t always other people’s money.  It used to be their food.  In the 1790s, things were getting pretty bad in France.  For the suffering masses, that is.  The ‘Third Estate’.  Things were going pretty darn well for Estates 1 & 2.  The rich nobles.  And the rich clergy.  And we know how all that ended up.  Bad.  For Estates 1 & 2.  The Third Estate (i.e., the poor suffering masses) grew tired of going hungry and suffering famine.  So they stormed the Bastille and kicked off the bloody French Revolution.  Because they were hungry.  And the rich and privileged were not.  But I digress.

Using Class Warfare to Demonize their Political Opponents

Sadly, for the rich and privileged, the American and French Revolutions changed things.  The ruling minority could no longer rule as they pleased.  They had to consider the majority.  There would now be taxation with representation.  Like in Great Britain.  People paying the taxes would have a say in how the politicians spent those taxes.

Merde.  Pardon my French.  Or so said the rich and privileged classes.  Who now had a problem.  If the rich and privileged were no longer entitled to a better life, how could they then live a better life?  I mean, let’s face it, these people aren’t exactly busting with ability.  Most couldn’t find their way out of a wet paper bag.  So what does one do with no ability?  Scheme deviously.

And one of the most devious and effective tools?  Class warfare.  You attack the people with ability who have earned their wealth.  Something that few liberal Democrats can do.  Because they have no ability.  So they demonize those that do.  Business owners.  Corporate America.  And you tell the poor masses that the only reason that they’re poor is because the rich business class is exploiting them.  And that they, the liberal Democrats, will rectify that situation.

Lying to Independents and Moderates

So they give them stuff.  They tax the rich.  And give stuff to the poor.  Which makes the poor grateful.  And dependent on the government.  Grateful and dependent, of course, equals votes.  This giving of other people’s money isn’t limited to the poor, though.  They make the not-so-poor special interests even less poor with this same generosity.  This generosity of other people’s money.

It’s a full-proof deviousness.  When the rich and privileged classes shower the poor and special interests with other people’s money, they get their votes.  And it’s a lot more than 20% of the electorate.  But it’s not quite a majority, though.  So they have to lie to another group of people to push them into the majority.  And who are these people?  Moderates and independents.

These people, though, are a problem.  They have honest jobs.  They don’t stand to prosper by voting liberal Democrat.  And they’re not likely to respond well to a campaign slogan that says we want to raise your taxes so others can live better without working as hard as you do.  People just don’t choose to pay more.  So others can have more.  While they go with less.  It’s why some people will drive 5 miles to save 2 cents per gallon of gas.  People choose to pay as little as possible.

Liberals Hate Ronald Reagan.  But they Campaign like him to Win.

So how do you get people who won’t benefit by voting for you to vote for you?  By demonizing your opponent.  The Left destroyed Newt Gingrich because he wanted senior citizens to ‘wither on the vine’.  Or so they said.  He never said that (he said Medicare would wither on the vine after enough people took proposed government subsidies to move into private insurance policies).  But all moderates and independents heard was that he wanted to kill senior citizens.  And that was enough.  His approval ratings plummeted.  To save his party, he resigned.

This is the only way liberal Democrats can win elections.  By lying.  They never run openly.  They never say they want to raise your taxes.  Far from it.  Because people don’t want to pay more taxes.  Few can even afford to.  No, when they campaign, they try to sound like the great conservative, Ronald Reagan.  Why?  Because the majority of Americans approved of his policies.  So they hide their true selves during the elections.  And hope and pray (figuratively, of course) that the moderates and Independents have short memories.

They have to do this because of one very inconvenient fact.  There are more taxpayers than tax consumers.  Which is a double-edged sword for liberal Democrats.  On one hand, more taxpayers mean more tax money.  But, on the other hand, because of Democracy, it also means more people they have to successfully lie to.  Merde.

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