Today's topic is a touchy one. Money is a huge source of discussion and tension in our country right now, especially the growing gap between the middle class and the rich. I understand the argument, that rich people and corporations have grown their income in huge proportions during the recession while the middle class just seems to lose more and more. At least that's how Occupy Wall Street puts it. And you know what, they're right! But you can't blame the rich for their prosperity and heres why.
I'm going to break this into two categories for everyone, starting with rich individuals. Don't be lead to believe that rich people are rich because of dumb luck. Rich people are rich because they've learned how to manage their money. A large majority of americans believe that you can only be rich if you make a big salary, win the lottery, or invest your money, but people who do those things can still be poor. Being rich is mindset. Just because you win the lottery doesn't make you rich. It just makes you a poor person with lots of money and it will disappear quickly, unless you change your mindset. Just because you make a big salary doesn't mean your rich. It means your a poor person with lots of money and it will disappear quickly, unless you change your mindset.
Do you see the pattern here? Being rich has nothing to do with how much money you have but how you manage the money you have. If money is managed well and you live within your means, any amount of money can grow into lots of wealth, therefor making you rich. To be rich, do rich people things. Also, what is this fascination with getting rich people to pay "their fare share" of taxes? One, the rich pay millions more than the middle does and second, I don't see the middle class trying to get their own tax rate lowered. Maybe instead of trying to get taxes raised on one group of people why don't we try a get all taxes lowered on everybody so everybody can win. I'll bet that if taxes were lowered on everybody and our government didn't take so much of our money then not so many people would be upset about "the gap".
Now lets talk about corporations. I really only have three simple things to say about this. First, corporations have lots of money because you buy their stuff. Duh....... If you don't want corporations to be so rich then don't buy their stuff. It's very simple. For instance, the other day I was driving in the downtown area of my state capital and I went by the Occupy protesters. To my surprise, as I drove by I happen to notice one of the protesters sitting by his tent eating McDonalds. HELLO?!?!? I think that explains itself. Second, raising taxes on corporations is a very stupid idea. Why you ask? Do you really think in your right mind that a business is going to take that out of their profits? Do you honestly think that they're just going to absorb the cost of taxes being higher? Hell no they aren't! They are going to pass that lovely tax increase onto you through higher prices:) So in essence, taxing corporations more simply taxes you more. And one last thing. Private business is what grew this country into what it is today and is the backbone on our economy. It's what allows us to be the most prosperous country in the world, but our government has made it so hard and expensive to employ people in America that the businesses go to other countries.
My solution to the economy is simple: Lower taxes on every american citizen to give them more of their own money, lower taxes on businesses to give them the ability to employ people here in the states, and to empower new businesses to start up. Production fuels job and economic growth, not government bailouts.
God Bless America
Makes sense to me, Brenden. Well said. One fact that was left out though, is most people do not know that the gap between rich and poor has not grown larger. In 2010, the middle class actually had some growth. This means that some poor moved into the middle class ranks, and some rich moved down into the middle class ranks. The President of these United States while campaigning will not tell you this. He would like to take the attention from himself and what his campaign promises did not fulfill, blame the economy on anybody but himself, so that he can be re-elected.
ReplyDeleteCongratulations on your blog and this well written entry.
ReplyDeleteA comment from me is that corporations could be further broken down into those who make "stuff" that we buy, and those who does not. The latter being "wall street" who as a group has made huge sums both directly from average Americans and through bail outs. That money has gone into the pockets of the few super rich while home owners suffer. In my humble opinion.
Peter
Well said B. Its also worthy to note that corporations also protect the "little man" who is setting up his new business. Setting up a C-corp or S-Corp, or LLC, allow us to separate our business from our personal assets, which allows us as Americans, to take a risk and start up our own businesses without the risk of people coming after our personal assets if we fail. The occupy movement is just a copout in my opinion. Just an excuse to be a victim instead of going out and working hard to get ahead.Digging your blog, Dude!
ReplyDelete