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« Community Crusader Award of 2009 | Main | Prostitutes With A Choice: Jail or Rehab »


Sharing The Wealth

By Ken Poland
January 4, 2010

Remember all the negative fervor surrounding the Obama campaign over his comment about 'sharing the wealth'? The hype about redistribution of wealth was amplified to ear splitting levels.

Did it ever occur to anyone that when they sell an item at a profit they are redistributing wealth from the purchaser to themselves? The scarcity of the commodity usually results in greater redistribution. The more convincing the salesman, the more eager the customers are to share their wealth with the salesman. Monopoly control of a product results in the seller being able to dictate the amount of redistribution. The more complex the structure of a business usually results in a less than equitable distribution of income to the members in the structure. The workers on the floor have very little influence on how the income is distributed. That is fact, even in highly unionized industries; they can work for less or not work at all.

The sharing of wealth by national and international corporations with government officials, whether elected or appointed, usually means those officials get the buttered toast and the ordinary folks get the crumbs. Sad to say, party affiliation nor religious creed has much influence on how the system works.

A reasonable return on investment is what is needed to induce expansion of a business. But, a worker's reasonable return on their investment of time and skills must be equitable. As the tax rates have dropped from over 90% maximum to less than 40%, the distribution of wealth has increased exponentially toward the wealthy. This distribution goes beyond reasonable reward for contribution toward peace in the world. Are 'gated communities' and 'slum communities' an indication of a healthy community or economy? The residents of the slums have the same basic needs of food, health care, and shelter from weather or physical harm as the residents in the gated community. Any thing more than that can be labeled as luxury. We have a very small percentage of the populace living in lavish luxury and a majority living in poverty and a minority in the middle that are reasonably comfortable.

The tax reduction salesmen, representing the interests of a minute percentage of the population, have sold their philosophy to the lower income segment of our economy. What the buyers of that philosophy don't seem to understand is that this will redistribute wealth from the bottom toward the top. You ask, how so? It takes money to operate the government; it makes no difference whether it is a liberal government or a conservative government. Therefore, a determined amount of taxes must be collected, whether that be from you or your grandchildren. A five percent reduction, across the board, means the higher taxable income gets a much larger total dollar reduction than the lower taxable income. But, it takes the same dollars to pay for the government operations. The flatter the rate schedule the higher the contribution is from the masses, or majority, of the people.

We are in an economic depression comparable to the great depression of the 1930s. If not for the social welfare programs that have been instigated, we would be in an even more severe social dilemma. Should we cut those welfare programs and cut taxes at a time like this? Unless you want to live like an animal and trust that you will be near enough to the top to survive in a society that is based on survival of the fittest, you might need to question the salesmen who are promoting cutting safety programs and taxes.


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