Search This Blog

Wednesday, January 25, 2012

Income Inequality

As previously stated, the gross income inequality that exists in the USA is a symptom of a disease, not the cause of one. It may be the cause of many other things, but itself it is a symptom.
The playing field is not level; this is a symptom of a chronic effort to change the rules we all play by to favor a certain group or team.

It is not smarts nor industriousness nor some sort of merit system nor the free market system necessarily which cause the Playing Field to be cantilevered towards one goal: it is the existence of exceptions to the General Rules of Play, such as the phenomenon of Carried Interest which has been highlighted in Mr. Romney's tax returns.
Carried Interest is essentially income taxed at the much lower capital gains rate, an exception not available to the non-rich.

Where did the exception to the Rules come from? It was brought into existence by paid Lobbyists who influenced the US Congress: it was bought and paid for. Those who are not wealthy can not afford such highly paid lobbyists, and thus must play by the General Rules of taxation which bedevil the rest of us.

Mr. Romney wishes us to believe that all this talk is Envy.
Such a stance misses the salient point entirely: that there are least 2 groups (if you can not bear to use the word "class") in this country: those who can purchase exceptions to the rules, and those who cannot.

The Algorithms of Despair will compute the outcomes - just as they did in 2008 - and we will live the calculations!

No comments: