In this very funny open letter to Americas Rich, Daniel Gross urges the wealthy to live up their bargain of all of these tax-cuts and incentives that the Bush administration has been doling out.
“Because we like you, we’ve pretended not to notice your gauche taste and rude manners. (You know you’re benefiting from the greatest concentration of wealth since the 1920s, right? The share of national income taken down by the wealthiest 1 percent rose from 14.6 percent in 2003 to 17.4 percent in 2005, according to Emmanuel Saez of the University of California-Berkeley.) We have sat patiently on JetBlue and Southwest as your private jets clog runways. We continue to bust our butts, defend the borders, and uphold the rule of law in order to protect your fortunes and property.”
In another related article:
“Daniel Gross hoped that an impending recession would force American companies to compete better in the global economy. He also noted that the wealthiest members of society, who have historically voted Republican, are beginning to support Democrats. Tim Harford posited that societies may be predisposed to accept unequal income distribution.”
These are all very interesting articles, especially since they help show how the status quo got us into this mess and it can not maintain this disproportionate equilibrium. As Bush is about to pass out another round of tax refunds it hard not to speculate that they are going to given to the rich again. We already have a strong data set that says the tax refunds of 2001 were ineffective at increasing the money supply. It seems we are choosing crony type favoritism over common sense first year economics. The marginal propensity to consume is much greater for the poor than it is for the rich. Money spend has a multiplier effect that increases the money flow. The rich apparently already have everything they need, they’re just going to save it. It’s the middle income to worse that are still hoping for a win fall that will get them a new flat screen TV.