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Plutocrats of the People - Why are America's superrich suddenly fretting about income inequality?
Slate ^ | Jan. 19, 2007 | Daniel Gross

Posted on 01/21/2007 1:18:35 AM PST by neverdem

Why are America's superrich suddenly fretting about income inequality?

What's hot for 2007 among the very rich? A $7.3 million diamond ring. Safari in Tanzania. Oh, and income inequality.

Sure, some leftish, Democratic-leaning billionaires like George Soros have been railing against income inequality for years. But increasingly, centrist and right-wing billionaires are starting to fret about income inequality and the fate of the middle class.

In December, Mortimer Zuckerman wrote a column in U.S. News & World Report, which he owns. "Our nation's core bargain with the middle class is disintegrating," lamented the 117th-richest man in America. "Most of our economic gains have gone to people at the very top of the income ladder. Median income for a household of people of working age, by contrast, has fallen five years in a row." Channeling Barbara Ehrenreich, he noted that "Tens of millions of Americans live in fear that a major health problem can reduce them to bankruptcy." Unbound, Zuckerman concluded with a plea for universal health insurance.

Wilbur Ross Jr., No. 322 on the Forbes 400, has echoed Zuckerman's anger over the Dickensian struggles faced by middle-class Americans. "It's an outrage that any American's life expectancy..." --snip--

In other words, if middle-class Americans continue to struggle financially as the ultrawealthy grow ever wealthier, it will be increasingly difficult to maintain political support for the free flow of goods, services, and capital across borders. In addition to Lou Dobbs Democrats, we'll have more Lou Dobbs Republicans. And when the United States places obstacles in the way of foreign investors and foreign goods, it's likely to encourage reciprocal action abroad. For people who buy and sell companies, or who allocate capital to markets all around the world, that's the real nightmare.

(Excerpt) Read more at slate.com ...


TOPICS: Business/Economy; Culture/Society; Editorial; News/Current Events
KEYWORDS: classwarfare
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To: neverdem

I'm reading a fascinating book right now, "The Mystery of Capital", by Hernando De Soto. It is instructive in why people in the West have prospered, relatively speaking, as opposed to those in third world countries.

It goes a long way to explain why the US can throw billions at underdeveloped countries, and very little trickles down to the population.


41 posted on 01/21/2007 5:30:11 AM PST by Darnright
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To: lentulusgracchus

Are you suggesting I need to pay for your kids?

John Kerry, is that you?


42 posted on 01/21/2007 5:31:05 AM PST by Stallone (War and Politics: When the Enemy begins to feel pain, they change their behavior to avoid it.)
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To: Jeff Chandler
The one positive (maybe only) of socialized medicine is that is that it will remove a HUGE cost burden that is making many of our companies less competitive. For example, GM's biggest expense at the moment is employee health care. That being said, socialized healthcare would be a lot more expensive and lower quality than it is now--when the Government touches something, it usually turns to crap. And the cost would be shifted from industry to the taxpayer.

If you REALLY want to see the cost of health care fall, then outlaw health insurance and make everyone responsible for paying their own medical bills. When individuals start footing the bill, they will scrutinize and contest every line item. They will get smart fast and veto unnecessary procedures proposed by their doctors. They will doctor shop for the lowest price. That would be a TRUE revolution. Unfortunately, it won't happen until the current system totally collapses on itself.

43 posted on 01/21/2007 5:40:16 AM PST by rbg81 (1)
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To: lentulusgracchus

Joking aside, raising a family can turn the rate of economic growth negative, or for astute investors, just slow down the rate of economic growth.

And in some cases I am aware of personally, it helps to increase it.

How? A supportive spouse, and a burning desire to help protect and reward a loving family.


44 posted on 01/21/2007 5:40:41 AM PST by Stallone (War and Politics: When the Enemy begins to feel pain, they change their behavior to avoid it.)
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To: proud_yank

Oh, no. They will never give you money, just health care.


45 posted on 01/21/2007 6:55:15 AM PST by ClaireSolt (Have you have gotten mixed up in a mish-masher?)
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To: mr_hammer

Some revolutions started with the middle class, but it was not the faux middle class democrats created here. It was the middle class of the bourgeoisie merchants, artisans and traders. The labor unions created a class of overpaid workers and called them the middle class. However, they do not want their children to follow in their footsteps. The American middle class was made up of freeholders and sole proprietors. Go to Williamburg and you will see no union halls.


46 posted on 01/21/2007 7:03:52 AM PST by ClaireSolt (Have you have gotten mixed up in a mish-masher?)
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To: mr_hammer

Wow, well said! You got your flame proof suit on? Your going to need it. Wait till the pro-illegal crowd and the free-traitor's here on FR get a bead on you.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

One factor which is seldom addressed is, how do you define a standard of living? I have things today that nobody could have at any price when I was young but some things that were freely available to me as a country boy who plowed with a mule are unavailable now except at a very high price or not at all. Who gets to decide what is really important?


47 posted on 01/21/2007 7:08:40 AM PST by RipSawyer (Does anybody still believe this is a free country?)
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To: mr_hammer
They don't read Slate.
48 posted on 01/21/2007 7:11:54 AM PST by 1rudeboy
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To: mr_hammer
Very well stated, and I agree with most of what you said, but there is more that I think is relevant. 'Loyalty' must be bilateral in order to work. Unilateral loyalty doesn't work in marriages, and in my opinion it doesn't work in business either.

Please allow me to preface what I'm about to say by stating that I believe the vast majority of employees in the US have ethics, want to do a good job, and more than earn what they are paid. However, when unions keep pushing for more and more without a sincere respect for the financial realities of the company involved, that is as much a breach of loyalty as are downsizing or outsourcing.

My father worked as a blue collar worker in a factory for over 40 years. He took pride in his job, but stated that many didn't. For a variety of reasons that I think include politicians vilifying business to gain votes, a deemphasis of social responsibility in business schools, and the pervasive 'me first' and entitlement attitudes in our country, the employer-employee 'social contract' has been abrogated. I couldn't agree more that the future of our country is dependent upon fixing this.
49 posted on 01/21/2007 7:32:28 AM PST by pieceofthepuzzle
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To: neverdem

Buuuut....these multimillionaire/billionaire whiners never offer to level the playing field by choosing to live on $250K a year and giving the rest away.


50 posted on 01/21/2007 7:57:58 AM PST by silverleaf (Fasten your seat belts- it's going to be a BUMPY ride.)
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To: BurtSB

obama has a 90 % liberal voting record .
how the heck is that main anything ?




It's mainstream liberal -- but still part of the machinery. What worries me is the stuff out of left field, the real, real wacko stuff.


51 posted on 01/21/2007 7:59:58 AM PST by durasell (!)
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To: Check6
What bunk.

A couple (HS grads) in our community became wealthy by starting their own business scooping up dog poop. The hours are theirs to choose depending on how much money they want to make. Now they are looking to hire an employee. Business is "picking up"!

Some people just don't "get it"- that one of the evolutions of American freedom is the freedom to stop punching a clock and work for yourself.

Take a business class or two some day and learn about some of the entrepreneurs who started what you now deride as big corporations. And meet some of this generation's budding entrepreneurs... walking down a street and see whose business lights are the first on and last off every day. Or pull up a web page for any product or service you could desire.

This is why many (ambitious) people do NOT aspire to the types of jobs considered "middle class" some 50 years ago. And by the way- they are present in every society, not just in America- but the playing field is much more level and lucrative here.

The minimum wage workers who immigrated here 5 years ago are already becoming Mom-and-Pop cleaning and landscaping services, homeowners and potential real estate investors.
52 posted on 01/21/2007 8:10:22 AM PST by silverleaf (Fasten your seat belts- it's going to be a BUMPY ride.)
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To: durasell
Medical care is not, and cannot be, a free market for a very simple reason - unless a customer is after some absolutely elective procedure, the customer really needing medical care is not quite a dispassionate rational market customer comparing the prices [not readily available anyway] and quality of the product prior to purchase. Sometimes the bests doctor is the nearest one.
53 posted on 01/21/2007 8:42:26 AM PST by GSlob
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To: Jeff Chandler

Ask the Canadians and English what they think about "universal health care"!


54 posted on 01/21/2007 9:05:31 AM PST by upcountryhorseman (An old fashioned conservative)
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To: GSlob

In America, we have always had the possiblity of achieving
great economic success: this factor is what makes us different than other cultures.


55 posted on 01/21/2007 9:09:41 AM PST by upcountryhorseman (An old fashioned conservative)
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To: neverdem

the super rich in the USA are no longer American citizens. they are world citizens. so they will screw the USA every time.


56 posted on 01/21/2007 9:10:51 AM PST by ckilmer
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To: neverdem

I am almost certain that none of the nauseatingly, filthy rich executives and board members at American Airlines are concerned.


57 posted on 01/21/2007 9:11:05 AM PST by getmeouttaPalmBeachCounty_FL ( **Hunter-Tancredo-Weldon-Hayworth 4 President**)
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To: durasell
In general an unstable economy isn't good for business.

Still there are conditions and there are businesses for which that isn't true. Conditions under which a stable economy is not as good for business as an unstable one. And businesses and businessmen for whom an unstable economy is great for business.

Under what conditions is instability preferred? Generally, in any stable economy which is sub-optimally stable -- in these it is necessary to go through a period of instability to have a chance to reach a more optimal economy.

This being America we have a bountiful national prosperity that was birthed in such an unstable transition phase we called the Revolution.

There are other cases that come to mind. It may well be, and I believe it is by analogy to childhood development theories, that the most long-term vital national economy must go through a long -- unending even -- series of periods of stability and instability. In childhood development these are called periods alternating of looking-inward and interacting-outward. The most famous "interacting outward" period being the "terrible twos".

And as we know from raising children -- the most important thing for development is how the adults react to and train the child in those periods of "outward interaction".

A brat is a child who has been allowed to run rampant during such periods. And just as there are always brats-waiting-to-be if unchecked, there are businessmen and businesses waiting to use, and very able to use periods of instability to become the adult equivalent of brats -- tyrants and oligarchs.

58 posted on 01/21/2007 9:30:49 AM PST by bvw
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To: GSlob

Medical care is not, and cannot be, a free market for a very simple reason - unless a customer is after some absolutely elective procedure, the customer really needing medical care is not quite a dispassionate rational market customer comparing the prices [not readily available anyway] and quality of the product prior to purchase. Sometimes the bests doctor is the nearest one.














You are supposed to shop medical care via insurance. Pick the best insurance you can afford and that will insure good medical care.


59 posted on 01/21/2007 10:28:16 AM PST by durasell (!)
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To: ckilmer
You've nailed half of it. Most of the other half, I think, is why America's superrich is fretting about income inequality, not wealth inequality-- they don't want some upstart entrepreneur displacing them on the totem pole.
60 posted on 01/21/2007 11:48:26 AM PST by Vigilanteman (Are there any men left in Washington? Or are there only cowards? Ahmad Shah Massoud)
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