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Monday, April 16, 2012

Some Things Should be Obvious


Why are we even talking about the Buffet Rule? I see folk swatting gnats about how much revenue it will raise for the government; some see it as a paltry $5 million, hardly worth bothering with, others run the numbers as far larger and they also place them in different time references which ever will benefit the argument the most.

Folk with more money ought to pay at higher rates as then have benefited the most from our country, let alone the moral obligation they have to those less fortunate in our country.

Those with very high incomes often benefit from the capital gains tax rate which is lower. Now for those of us who are retired, whose paycheck does not rise with the inflation or cost of living by any significant margin benefit by that and I think it seems fair. But if you are a millionaire it takes on an entirely different moral picture.

If you watched my video link on Robert Reich’s explanation of how Mitt Romney got rich you get a good idea of how this works. Entrepreneurs by definition are risk takers, he isn’t; he risks others people money and then ends up paying low capital gains taxes. That does not seem moral to me. Today’s morality may just be changing from concern for the public good and care for all to just get what you can get and to hell with you fellow human beings. It is the morality of expediency and it stinks. I do see morality at work business but most of they are in the small businesses where they have personal contact with those who whom they do business.

I heard a comedian of TV recently who joked that the church on wants 10% of our money the government wants more. But he has it wrong on many counts. The “Tithe” he refers to in the Old Testament was 10% it was more like 20% or more. The religion and the government were the same so it was a different time. The morality of hospitality was also much different in that any stranger in your midst was to be treated as a treasured guest; we are just suspicious of strangers and wary of them. And in the New Testament we are taught “to whom much is given, much is required.” That is a moral basis of a progressive tax. And I believe it is what lies behind Warren Buffets statement that got this whole ball rolling. He seems to understand moral responsibility while  others are argue for the law of the jungle or I’ve got mine to hell with you. Warren Buffets idea adheres to the concept of the tithe, which is percentage giving of your income.

The same thinking is apparent when we talk about government’s role. The major demands that we cut government spending on social issues yet when it comes to each specific program, they don’t want them cut. It reflects bad morality; impersonal ideologies versus human concerns for neighbors.

What offends me the most are the self-righteous Christian conservatives who often are the harshest in judging the needs of the fellow human beings. They are the Pharisees of our day who are legalistic and inflexible, uncaring and even condemning about their neighbors; they ignore the basic moral teachings of Jesus who tells us to love our enemies as well as our neighbors and to care for the disadvantaged.

The Buffet Rule, health care provided for all citizens, guaranteed wages, equal wages, eradication of poverty, social safety nets, infrastructures than benefit all and the like should be obvious in a moral country. These are the goals we should seek to accomplish and as a rich nation have the ability to undertake. Arguing about the proper procedures is worthwhile, but to just oppose them is immoral.

The Buffet Rule is a powerful symbol of how our country thinks.  In the baselinescenarion.com, Simon Johnson see three ways forward, “There are three ways forward.  Either the Republicans begin to compromise – and agree to raise taxes as part of a comprehensive deficit reduction and debt control strategy, just as Ronald Reagan did.  There is a great deal of confusion about whether Reagan raised taxes after first cutting them; see chapter 3 of White House Burning for the details of what actually happened.

Or the Republicans who have signed the Taxpayer Protection Pledge will prevail – no one’s taxes will go up and, most likely, some people’s taxes will go down.  In this case, either the deficit will continue to grow (which is what Newt Gingrich is proposing) or Medicare and almost everything else the federal government does will be scrapped (which is the position represented by Paul Ryan).  My guess is that, in this scenario, we will say farewell to any meaningful form of social insurance – good luck getting healthcare when you are 85 (unless you earned over a million dollars a year for many years).

”Or the Republicans will lose big – and fiscal consolidation can proceed without them.”
The moral center of this country seems to have shifted over the years and not in a positive way. Fear and meanness appear to be the way to try and get our ways. It is perfectly possible for folk to argue over moral issues, disagree but still act cordially and caring for each other. I know it for I have seen it. I have seen in mainline churches dealing with controversial issues. I hope to see it in the political arena but I’m not holding my breath.

We free end speeches, “And may God bless America.” God has, we need to respond as being blessings to each other.


10 comments:

  1. "The Buffet Rule, health care provided for all citizens, guaranteed wages, equal wages, eradication of poverty, social safety nets, infrastructures than benefit all and the like should be obvious in a moral country."

    One thing that sticks out glaringly in your list is "guaranteed wages". I assume you mean minimum wage, or so-called living wages.

    Both of these are useless and destructive policies. There are several reasons, but here are two of them:

    1) It is not means tested. Only 30% or so of wage earners are needy, and a large percentage of them are well off. The minimum wage laws give a handout to all regardless of their need.

    2) Those forced to give an unearned handout are mostly small business owners. They simply can't afford to do this. The result of minimum wage hikes are always a combination of businesses going under, and businesses forced to fire people because they can't survive giving the unearned handouts that the government requires that they give out.

    The ideal solution here is for employers to pay the fair value of the work.

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    1. Also, about George Carlin. Where did he get this? Where can you ever find a conservative who says we should give the rich more money? He's making a kind of straw-man attack, actually.

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    2. You seem to make my point. Where is your heart man?
      I affirm both guaranteed and minimum wages which have worked in European countries. But especially the minimum wage bolstered the middle class enabling those to move up; read a little history.
      Back up your statement, why do you think this is a burden on small business in contrast to large? Where's you data?
      As the Carlin, I guess if you don't get it you just don't get it.
      Only 30% of wage earners are needy? Data? Handout? Where do you get this stuff?
      Who determines the fair value of work?

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    3. "I affirm both guaranteed and minimum wages which have worked in European countries."

      And they help make unemployment soar.

      Where is my heart? Read what I said. I oppose a slapdash non-means-tested policy which forces struggling small businesses to give handouts mostly to people who aren't struggling or needy. These policies do indeed force small businesses to give handouts to those who are quite well off.

      Instead, I favor strongly means-tested welfare programs. That's where my heart is. No handouts to the non-needy.

      "Back up your statement, why do you think this is a burden on small business in contrast to large? Where's you data?"

      Well, I have worked in small business. Big businesses, from Walmart to McDonalds, pay ABOVE minimum wage. In fact, Walmart kind of likes these policies as it helps wipe out the mom-and-pop competition.

      "Handout? Where do you get this stuff?"

      The fair wage for the work is the real value. If the government is forcing a small business to pay above the real value, the difference in the amount is a handout.

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    4. By heart I mean compassion not just passion.
      As one who has an undergraduate degree in sociology I believe in mean-tested programs, but I do not see where you cite any.
      Your statement on fair wage as the real value is unclear to me; how do you define real value then?
      Obviously what seems obvious to one person is not obvious to another.

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    5. Well, it is true that no means-tested program has been discussed.

      The minimum wage and related laws are nothing like means testing. They force businesses, mostly small, to hand out unearned money which mostly goes to middle class and well off people. That's a terrible waste.

      There are plenty of means tested programs: Medicaid, food stamps, Pell grants, and the like. I strongly support these because they are targetted to help the needy. I strongly oppose back-door welfare programs like the minimum age that do a lousy job of helping the needy, force employers to fire people, and have most of the financial benefit go to the non-needy. What don't you understand about this?

      Who defines the real value of the wage? The worker and the employer. It is their business, really, no one elses. Anyone outside of that deal honestly has no idea what the value is.

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    6. The idea behind a minimum wage is to prevent exploitation from being a profitable business model. It's one of the parameters that defines the boundary conditions of the market. Even a 'free market' has a framework. For example, you're not allowed to keep workers against their will and force them to work for free (anymore).

      This way business investment is steered towards things that will result in jobs that pay something rather than being a simple 'race to the bottom' on wage costs and living standards to feed an increasingly destabilizing level of wealth concentration.

      In other words, if you can't pay your workers more than $X/hour, then I'm sorry you don't have a viable business model. Obviously if you set it extravagantly high like $30/hr or something you wouldn't have enough jobs or viable business models. But set it too low and low-paying jobs become increasingly predominant.

      Not because that many actually make the minimum wage, but setting the lower boundary even lower allows those immediately above that level to drift downward further as employers don't have to pay as much to compete for the lower-tier labor.

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    7. PK said: "For example, you're not allowed to keep workers against their will and force them to work for free (anymore)."

      Which is entirely unrelated to my support for paying the workers a fair wage equal to the real value of the work.

      "This way business investment is steered towards things that will result in jobs that pay something rather than being a simple 'race to the bottom' on wage costs and living standards to feed an increasingly destabilizing level of wealth concentration."

      So you want increasing fascistic government control and interference to tackle the non-existant problem of wealth concentration? That is not a good reason at all.

      "In other words, if you can't pay your workers more than $X/hour, then I'm sorry you don't have a viable business model."

      Actually you DO have a viable business model if y9u have workers who want to work for that wage. This should be entirely between the worker and the employer. Only they know if the deal is fair. Not another.

      "Obviously if you set it extravagantly high like $30/hr or something you wouldn't have enough jobs or viable business models."

      Any level set above the real value is extravagantly high. If we set it to one silly level conjured by imagination, why not another?

      "But set it too low and low-paying jobs become increasingly predominant."

      No, they do not. The proof if this is in the fact that jobs that pay the minimum wage in America are a very small percentage of jobs

      From the Bureau of Labor Statistics in 2010:

      "Together, these 4.4 million workers with wages at or below the Federal minimum made up 6.0 percent of all hourly-paid workers."

      That's 6% of workers who make this level wage. The rest make MORE than it.

      If you abolish the minimum wage, the 94% of jobs that pay above it would not be impacted at all. Of these 6%, only some would be lowered (in cases where the real value of the work is lower than the Federal level)

      A few percent (a percent that would not change) is not "predominant"

      "Not because that many actually make the minimum wage, but setting the lower boundary even lower allows those immediately above that level to drift downward further as employers don't have to pay as much to compete for the lower-tier labor."

      And this is something that would only affect a tiny few percent of workers. The gains would offset this: more people employed.

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  2. An interesting piece on tax rates and the wealthy as relates to the great depression can be found at this blog ..
    ..my independent study tends to agree. Yet, the policies of the last 30 years, disastrous to the middle income earner, are still the centerpiece of the 'cure'. Go figure.

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    1. Excellent article and a fascinating new website to explore. Thanks.
      My studies agree as well. It's rather like, well, it hasn't worked for 30 years so lets use it some more. I also appreciated on the use of term centrists today; it is rather like throwing a off weighted wobble ball.

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