What happens when the middle class loses ground?
Pundits whine. Politicians rant and rave. Bashing the rich becomes more popular. Resentment rises. Envy increases. And so do tax rates.
The rich cease being objects of admiration. They become “filthy.” Roger Cohen, writing in the International Herald Tribune, bemoans the fact that while the “filthy” rich get even richer, “fabulous wealth creation has been unmatched by improved education. Teaching that will get you recognised in a global world is denied minority kids in failing schools.”
We don’t know what that means…maybe he means that people who teach minority students are dumbbells. And maybe they are. And maybe he thinks paying them more money will make them smarter.
Poor Mr Cohen. He has so much faith in the rich! He thinks they can do anything. Hedge fund managers expertly exploited this go-go credit bubble market; now they can do something about public education!
“Hedge fundocrats…should consider ways to pile money into ending this national failure.” What faith he has…in people with money…and in money itself. Pile it on. Push it in. Stack it up. Is there any problem more money can’t solve? Money has been pouring into “education” for the last four decades – while educational achievement levels fell. Still, Cohen thinks more money is the cure…not the problem.
Then, of course, he goes on to want to take money away from the people who have more of it. The rich get much of their money from capital gains, he complains, which are only taxes at a 15% rate, rather than the 35% top tax rate.
Expect more of this, dear reader. Brace yourselves.
Markets and Money