Food for thought from a political scientist for those who think fair=communism and believe in the myth of class warfare:
Few begrudge the right of an entrepreneur to make money. It is understood in a free market that risks deserve rewards. However, nobody makes their money on their own as they require workers to help them in the development and implementation of a good or service as well as a customer base to make use of the idea. The economic health of the business and country is more than just one man and there needs to be an underlying social contract where the entrepreneur's success is shared with others. This is all about what is fair. Companies have prospered in terms of profits to little effect on those who also contribute.
I am listing some facts concerning the myth of fairness in this country and how absurd it has gotten.
We often use the GINI index in social sciences to compare income equality across nations as it addressed ratios rather than absolute wealth. Our current ranking in income equality is the lowest in the developed world and is actually worse than Russia. We remain slightly more equal than Mexico. This has only gone up in recent years. Is it socialism or communism when the U.S. is comparable to countries famous for their have/have not demographics?
While the GDP per capita has risen steadily over the past decade, median income in the U.S. has actually dropped significantly. This means that as our economy grew, the fortunes of the person sitting at the 50th percentile of the nation has actually seen their situation worsen.
The minimum wage in 1968 was $1.60. Had this kept up with inflation alone, this would be $10.42 in 2011. Over the past 3 decades, the value of the minimum wage has severely eroded. The minimum wage was intended to be a base minimum to allow a working person to be reasonably able to support themselves. When raised from 5.25 an hour, the minimum wage was not a living wage in any county in the country.
Inflation is calculated by a miscellaneous basket of goods annually. This calculation is unable to reflect increases in fuel/energy, housing, health care and education, all of which have grown at a higher rate than inflation and much higher than personal incomes.
America was prosperous in the 1950s through 1970s with a system that featured high personal taxes and low business/corporate taxes. Today this is reversed and has fueled incentive for the pooling of money to the top rather than investment. In contrast, Canada has implemented our old tactics and has seen steady growth in recent years.
When people complain about the number of people not paying taxes, the reality is about 38% of tax units and 60% of them (nearly 24% of total) had income of under 20,000 in 2008. Instead of griping about them not paying taxes, may we ask why so many people are making so little? Do we really benefit from taxing the low income and the social security crowd?
The fair tax is a regressive tax as it disproportionately hits lower and middle classes as they must spend nearly all of their income. Such a tax would push millions more toward poverty. The wealthy, with their ability to save, pay a lower proportion despite the tax having a lower burden. Because of this fact, it is far more regressive than even the flat taxes of former communist nations in Eastern Europe.
Even in current times of the ultra-wealthy, consumption remains roughly 70% of the economy. While we focus on supply side economics and investments, consumer demand remains low. American corporations have outsourced all they could to workers in near slave conditions and given up on the American worker. Without a middle class, consumption of goods and services will grind to a halt and all will suffer.
The 99% is in the interests of the 1%. We need a fairness and a faith in the middle class to work and produce. We've never failed to support the economy and believe in the dream of hard work begetting gain. Don't turn away from us and we will work together to make a better nation.
