Class Warfare Blog

April 23, 2014

Inequality BS

The GOP’s take on income and wealth inequality is that it is basically a “good thing” which tells you everything you need to know about who is paying the GOP’s bills.

Their basic argument is that the wealthy are the “job creators” and so having the wealth in their hands means that jobs are created and people get to work, pay their bills, and everybody is happy. Now, they are not arguing that the wealthy are all creating jobs directly, many of the wealthy these days turn out to be corporate executives and they are not going to use their own money so their companies can hire more employees. Instead they invest that money in, for example, the stock market so other people can use that capital to hire folks and build things.

It is a nice story, but how is it actually playing out.

Let’s see: businesses are sitting on almost two trillion dollars worth of cash they aren’t using to build stuff and hire people.

Why is that?

Apparently there is not enough demand.

The wealthy are not good at spending money.”

Why is that?

Well people are in debt up to their necks and many don’t have jobs and those who do haven’t seen much if any growth in their income in decades while their expenses have gone up and up and up.

Why is that?

Basically it is because of the wealthy. You see they are very good at making and hoarding money but not so good at spending it. Do they spend their money by buying stocks in companies that are hiring and building? Not so much. Instead they invest in “securities” (such irony) trying to make as much money as possible and those “securities” are tied to activities that are more speculative than constructive, that is nothing real is created. And the return on investment in the form of tax breaks secured by bribing, uh, donating to the campaign funds, of politicians is undeniable.

The wealthy are not good at spending money. The poor and middle class are: they have no choice but to spend all they make. So, as wealth has been transferred from the poor and middle class to the wealthy, it has had the effect of increasing “savings” and decreasing “spending” which has created the lack of demand that created a stalled economy.

Why is that?

The wealthy think that their wealth makes them “special.” They don’t realize that they are “special” only in the sense of the Church Lady (look it up). They are using their wealth to rig the game to enable them to increase their own wealth because to them that is prestige. The fact that the other 99% of us think of them as just rich assholes is irrelevant. The only thing that counts is their ability to increase their own wealth and therefore their own prestige among their peers. And if they have to fuck over all of the rest of us to do that, well, so be it.

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