Entitlements, Income Inequality and Inheritance

Democrats are proposing some very big giveaways and entitlements. Elizabeth Warren is shaping up to be the leader of the pack along with Alexandra Ocasio-Cortez and Bernie Sanders.

It’s disquieting to witness how liberals are attempting to take over the federal government by bankrupting the country. Among Democrats there is not one iota of fiscal sensibility. They think they can buy votes by giving freebies to their base. If they are successful in 2020, there is no chance that any of their ridiculous and expensive entitlements will actually become law.

It’s comforting that many legislators, in both major parties, have admitted that the proposals by the politicians mentioned above are outrageous, even as millennials and ethnic groups are celebrating promises that won’t be kept. The types of aid being suggested go far beyond socialism and would be a recipe for financial disaster.

Warren’s objectives are actually the most draconian. The only strategy she has to pay for entitlements is to tax the affluent. After telling us about her intent to spend trillions, she has not offered one creative idea about how to fund universal health care, free college tuition, free child care and so on. If wealthy class taxes were increased to 60 or 70%, it wouldn’t be enough to avoid crushing fiscal deficits. Have any of the Democrats ever taken a course in economics or accounting?

Liberals say their base is totally supportive of proposals to bilk rich people. Of course they are. Other people are being asked to make sacrifices, not them. Proposals would be far more palatable if all Americans made contributions to improve our country.

For instance liberals never speak of commitment from the individuals receiving aid. Why should welfare be paid to able-bodied people if they refuse to accept available jobs? The job market is vibrant. People can find work. Aid should be contingent upon the recipients improving their lot. Aid should be temporary and not a perpetuity.

Some have suggested that young people with college debt should have an obligation to pay a percentage of their earnings, over a minimum level of earnings, into the future. If they were successful their debt would be paid back. If they cannot find employment above a certain amount, they would not repay with money needed to survive.

The point is everyone should make sacrifices. The Democrats and the federal government should not be allowed to continually demand more from successful Americans. And, since when is it a crime to earn a high wage? The mantra “everybody should pay their fair share” is a license to rob the rich. The affluent class in America has worked hard for their standard of living. The mantra is apropos for Robin Hood in Sherwood Forrest, not the US.

The amount that an individual earns is based upon the contributions he or she makes to the success of the organization he or she works for. Even in government, individuals that have advanced education and experience earn more than newer, less educated employees. Over time, with hard work, ambition and creativity people can advance. This holds true for both governmental and private positions.

One of the most absurd controversies deals with the outrage over CEO compensation. Why would anyone find it offensive that the person who manages a corporation with 20 or 30 thousand people would earn 200 or 300 times the lowest paid employee? People are not paid millions of dollars unless they bring many times their compensation in value added service.

One of the most important tasks of Boards of Directors is to pay the person who runs the business a competitive salary based upon performance of the organization, personal achievement and comparison to others at different companies doing the same job. Usually, in the beginning of the year, targets for performance (financial, reputation, competitiveness, diversity, employee relations, etc.) are negotiated. If goals are achieved compensation will reflect them. If goals are not met compensation will suffer.

There is a growing misconception that certain people are dealt six and seven figure salaries as a gift. This is absolute nonsense and a myth perpetrated by radical social progressives. To bring home this kind of money is only possible for individuals who have the education, skill, drive and integrity necessary to be successful.

The New York Times had an article in the Sunday edition that spoke about the revulsion of children for inherited wealth from their parents. All parents are trying to do is to give their children a great life where decisions need not be made based upon the money. For this some parents are scorned. Talk about no good deed going unpunished.

It comes as no surprise that young people are so overly sensitive to income inequality when 90% or so of their teachers and college professors along with the media are so critical of high wage earners in the country.

My advice to the unfortunate young people saddled with so much cash: find a charity and write a big check.

As for Democrats, they will continue to play upon the problems of the lower classes by blaming them on the affluent.

 

 

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