Two Americas?
By Pejman Yousefzadeh Posted in Class Envy | Class Warfare | Demagoguery | Economy — Comments (24) / Email this page » / Leave a comment »
I think not. Let us promulgate Yousefzadeh's Law Regarding Economic Envy: The emotional appeal of class warfare arguments is inversely proportional to the accuracy of said arguments.
Repeat that to yourself every time you are confronted with a class warfare argument. And for that matter, repeat it every time to the confronter as well.
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"If we want to take this party back, and I think we can someday, let’s get to work." – Barry Goldwater
...if the orator cannot win on appeals to logos, they have to work their way down the latter. When they start to rely fully on pathos for the basis of their arguments... it should be all over to the discerning observer.
That being said, it works because too many people focus not on "the way the world is" but rather "the way the world seems to me to be". Spoiler for the "reality-based" community: they usually aren't the same, as humans lack proper perspective over society.
"No matter how much lipstick you put on the taxation pig, it's still a pig... and it's currently snout-down in your wallet." - Michael Fisk
The differential grows increasingly nonlinear as you go up the scale. So its arguable the quintiles mask the actual status.
The comparison for people selling off assets also doesn't play well.
In general it makes more sense to attack those that profit from redistribution schemes. They are more uniformly disliked
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"Those who expect to reap the blessings of freedom must, like men, undergo the fatigue of supporting it."
-Thomas Paine: The American Crisis, No. 4, 1777
The people from the Dallas Fed, quoted in the article, point out something I've always tried to make people aware of: these days, almost everyone (rich or poor) has the ability to buy things considered luxury items not too long ago.
Once upon a time, poverty meant starving and freezing. Now it means your kids are fat, and they have to make do with not getting a new cellphone every six months.
The writers from Dallas explain this as an effect of international trade, which is absolutely right. They don't point out that it's also an effect of productivity improvements.
Where do productivity improvements come from? Increased capital inputs to the economy. As the rich get richer, they invest in the things that improve the material conditions of life for everyone.
I think the appeal of economic populism (apart from its responsiveness to media disaster-mongering) is its promise to alleviate poverty not in absolute terms, but in relative terms. The phrase "class envy" is exactly right.
So did I.
My point is somebody that's selling of their assets to make ends meet isn't going to buy the argument that people he sees on lifestyles of the rich and famous aren't living much better than him.
It also doesn't work when middle class people get bombarded with images of people living under overpasses or homeless beggars.
The class envy argument is an emotional argument based on peoples hatred of those they feel have it better than them. To make the argument you have to substitute a different thing to hate.
After all, Thomas Nast didn't draw cartoons of Boss Tweed pinching his pennies.
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"Those who expect to reap the blessings of freedom must, like men, undergo the fatigue of supporting it."
-Thomas Paine: The American Crisis, No. 4, 1777
And I don't fall for the class warfare rhetoric, but:
My point is somebody that's selling of their assets to make ends meet isn't going to buy the argument that people he sees on lifestyles of the rich and famous aren't living much better than him.
I'm doing just that right now. I'm selling several things I didn't want to sell on eBay and elsewhere to raise working capital for the next few months, so that I can keep the lights on and keep serving the customers I do have. I'm letting these things go for half of what I paid for them, and that hurts. I'm an adult and I'll live through it but it hurts nevertheless.
Its damn difficult to get up in the morning and think you may have screwed yourself to the wall. Every day I think that I just go over the problems I have that are caused by the government. Then I know I don't want help.
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"Those who expect to reap the blessings of freedom must, like men, undergo the fatigue of supporting it."
-Thomas Paine: The American Crisis, No. 4, 1777
The ultimate blame rests with the fact that here in Massachusetts the impulse to raise taxes is just something that most people have had spliced into their DNA, because they honestly believe that anyone who can afford to own a truck is using it to haul money away to the bank in burlap bags.
"Austerity" for government is not in the vocabulary of this state.
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"If we want to take this party back, and I think we can someday, let’s get to work." – Barry Goldwater
Because the underlying financials of our business are sound and we are going to be ready on the flip side when things begin to turn around, but my main point here was that we're not ready for economic triumphalism just yet. I'm waiting to see how things look at this point in May or early June.
I am just personally relieved right now that I don't have a big payroll to meet, because if I did I'd be laying people off. That's just a fact. I can survive on mayonnaise sandwiches and three-day old bagels and stale coffee, but if I had 20 employees last month I would have added 20 people to the unemployment rolls, there's no doubt about it.
And I know we're going through a rough patch right now. Looking around me, it's impossible to say that I'm "poor" judging from the quantity of equipment I have at my disposal, etc. The problem is that there is no "float" in my area of the economy right now, either in credit or in cash-on-hand. That means you get perilously close to going out of business. It's nauseating.
One hundred percent accurate, well reasoned and irrefutable.
You would have a hard time getting people even to understand why its important today.
This however idiots weep over.
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"Those who expect to reap the blessings of freedom must, like men, undergo the fatigue of supporting it."
-Thomas Paine: The American Crisis, No. 4, 1777
access to which has become more restricted to upper class people.
The poor and lower middle class live in neighborhoods at risk for crime, contend with underperforming public schools and have been priced out of home ownership on the affluent coasts, where a normal 3/4 bedroom home can cost from 500K to 1MM.
The affluent, and this most decidedly includes liberals, live in pricey neighborhoods, often with private security, send their kids to private schools or schools in high dollar public school districts, and shower their kids with amenities that only the super rich enjoyed a couple of generations ago. Their social and professional networks are becoming increasingly more removed from contact with the rest of society. Liberals contend with this by guilty support of public services which will keep failing. All too many conservatives justify it with paeans to market economics and Randite superiority complexes. Both are unaware of the increasingly cartel-like organization of American society that makes their success possible.
Yuck.
Repeat that to yourself every time you are confronted with a class warfare argument. And for that matter, repeat it every time to the confronter as well.
And every time I repeat it to the loan officer at my bank she still hangs up on me. I hate to play into Democrat talking points, Pejman, but I don't think a lot of people realize how bad times really are, especially for businesses on the edge or close to the edge. I'm working like crazy to develop new business before I go broke and right now I'm getting the coldest of cold shoulders from banks and lending institutions. I'm not much in the mood for economic triumphalism right now, unfortunately. Times are bad from where I'm sitting, verging on catastrophic.
It's just a fact of life: Last week I had to turn away a job because I couldn't get a line of credit to buy enough ink to print it, make the money, and pay back the price of the ink. Since then I've rectified that problem through sheer tenacity but not being able to buy the raw materials you need in order to do work that's coming in the door is a painful experience.
My franchise atty whom I have been with for 20 years said to me yesterday that even he is feeling the pinch of the economic slowdown. I was flabbergasted by his statement because he has never in the last 20 years ever opined a personal financial position.
I don;t buy the 2 Americas line, never have, never will but I do know that with inflation increasing (just look at what milk costs these days). With similar issues like Kowalski I'm facing with my business that the wedge of class warfare will only increase in the short term. See, most franchise buyers in my investment range use home equity or 401k to finance their development and that money is gone for now.
I am hopeful that this slowdown will run it's course quickly because I'm tired of losing business. It's nearly enough to drive me into a government job.
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"Those who expect to reap the blessings of freedom must, like men, undergo the fatigue of supporting it."
-Thomas Paine: The American Crisis, No. 4, 1777
argument largely because I consider it inflammatory rhetoric that accomplishes little. However the Cato article and the studies it cites are largely just propaganda and spin. Indeed there is a real problem of income inequality that exists which conservatives should invest in addressing by empowering small business in this country however I don't really want to chase that rabbit at the moment.
It is unfortunate from my perspective that organizations like Cato are so entrenched in their thinking that they can't even do an honest analysis on this issue. Sure consumption is an issue but by focusing on consumption as a guide they deliberately avoid much more critical points in the actual examination of what allows and empowers upward mobility.
To compare the consumption of someone who is unable to save for retirement, invest in business, begin their own small business, purchase healthcare etc. with the consumption of someone who receives healthcare from the employer, has a fat 401k, is able to accrue additional savings dollars etc. is ludicrous. Savings power alone is a huge benefit to the second person in the security and financial stability it provides.
The Cato article is clearly flawed or more specifically the op-ed in the times is flawed and Cato swallowed it hook line and sinker.
Although, not surprisingly, the article refers to John Edwards and the Democrats, I must be honest and say that when I first read it Mike Huckabee also came to mind. Let's face it, from both his past policies and present rhetoric (e.g. the "Fair Tax" will eliminate the IRS, the "Club of Greed," etc.) those comments can apply just as well to him.