The Vilification of Wealth

As a young man, I aspired to become financially self-sufficient. I wanted the safety and comfort provided by financial independence. It is the “American Dream” and I admired those who possessed the determination and perseverance to refuse to be defeated. That’s not to say they didn’t experience setbacks, challenges, and even some failures. Of course they did, but that’s what intensified their passion and developed in them a mental and physical toughness which would never concede to defeat. But never did I resent their good fortune or believe for a second I was owed anything from any person or entity.

America became the greatest nation in the history of the world because men and women came from every continent to pursue economic, ideological and religious freedom. Most followed their ambitions in an honorable manner and resisted the temptation to succeed at any price. These are the people who built America! Their vision, work-ethic and self-sacrifice created prosperity beyond their own imaginations. These people deserve to be recognized and should earn the respect of every American.

When we talk about the ‘land of opportunity’, we must also recognize the laborers who toiled in the fields, lifted the heavy burdens, carried the weak, and shared their possessions with those truly in need. But what would they have done if someone hadn’t passionately pursued their dream; hadn’t risked their own financial security; and refused to give in when all seemed lost. I know it’s fashionable in political climates to lift up and praise the American worker and I do as well. But we should also honor and respect those who achieved their dream in an honorable and forthright manner.

There are numerous clichés in our lexicon of behavior about how just a few can ruin a good thing for everyone else. We know this is true because we see it everyday in our jobs, our schools, our churches, our civic groups, and our governments. Some people just don’t believe the rules apply to them, or their ambition is so great they unknowingly trample on the rights others, or worse, they simply are bullies who will stop at nothing to satisfy their own self-interests. These people are everywhere and they are distributed equally among all demographics and every purpose of collaboration.

I don’t resent the truly needy because a few have taken advantage of our compassion and generosity; I don’t resent our elected officials because a few have abused their power; I don’t despise an entire political party because a few extremists step over the line of good judgment; I don’t resent corporate executives because a few have compromised their fiduciary responsibilities; and I don’t resent those with abundance just because they have it. The majority of those who achieved financial independence are good and respectable people. They don’t deserve to be vilified by anyone and especially political candidates looking to garner votes by creating class warfare.

If we continue to portray the wealthy as greedy, insensitive, oppressive capitalists, then we should expect them to flee this hostile environment and seek refuge in safer places. Who then will step up to risk everything on an idea, or invest on faith in the entrepreneur, or provide the working capital for new and growing businesses, or fund noble philanthropic projects? If you think the wealthy won’t leave, think again – they already have. According to the 2000 Merrill Lynch & Gemini Consulting study World Wealth Report, it is estimated that one-third of the wealth of the world’s high-net-worth individuals is safely deposited in offshore financial centers away from the probing eyes of revenue hungry governments. The amount is estimated to be eleven trillion dollars ($11,000,000,000,000). And according to Neal Boortz & Congressman John Linder in their book The FairTax Book, American wealth accounts for 90% of this figure. Can you imagine what our economy could do with an infusion of ten trillion dollars? The exodus has already begun. And sadly, some of these wealthy Americans have forsaken their citizenships for friendlier countries.

I believe it is the dream of every American, regardless of circumstances, to achieve financial independence. But what they will get is financial mediocrity, at best, if we destroy the dream. So the next time you see or hear someone vilify successful Americans, know these are the people who want to penalize others for their own failures and lack of ambition.

Bill Monroe
Southlake, Texas
October 31, 2008

The following little anecdote is clever and amusing but has a very serious message. The author is purportedly an economics professor in Georgia but he has allegedly denied authorship.

Our Tax System Explained: Bar Stool Economics

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.

So, that's what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. 'Since you are all such good customers,' he said, 'I'm going to reduce the cost of your daily beer by $20.' Drinks for the ten now cost just $80.

The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free. But what about the other six men -- the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?'

They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay. And so:

The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now pay $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).

Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings. 'I only got a dollar out of the $20,'declared the sixth man. He pointed to the tenth man,' but he got $10!' 'Yeah, that's right,' exclaimed the fifth man. 'I only saved a dollar, too.

It's unfair that he got ten times more than I got' 'That's true!!' shouted the seventh man. 'Why should he get $10 back when I got only two? The wealthy get all the breaks!' 'Wait a minute,' yelled the first four men in unison. 'We didn't get anything at all. The system exploits the poor!' The nine men surrounded the tenth and beat him up.
The next night the tenth man didn't show up for drinks so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill! And that, ladies and gentlemen, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.

For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible.

(Author unconfirmed.)