How the super rich convincepeople that they are making thempoor for their own good

Dave Kelley 10/2/2010

Top 13,400 households receive more yearly income than the bottom 96 million Americans

Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benefitthe Super Rich – and Cheat Everybody Else by David Cay Johnston

Adam Smith

Why are people angry?Why are people angry?

When was the last time a When was the last time a poor person hired you?poor person hired you?

Tea party sign in Akron, OhioTea party sign in Akron, Ohio

www.cbpp.orgwww.cbpp.org

www.cbpp.orgwww.cbpp.org

1979

Lowest Quintile, 1.80%

Second Quintile, 4.10%

Middle Quintile, 6.70%

Fourth Quintile, 10.50%

Top 1%, 37.80%

Highest Quintile, 76.50%

Income from wealth: interest, dividends, rents & capital gains

www.cbpp.orgwww.cbpp.org

2003

Highest Quintile, 85.80%

Top 1%, 57.50%

Fourth Quintile, 6.10%

Middle Quintile, 4.30%

Lowest Quintile, 0.60%

Second Quintile, 1.60%

Income from wealth: interest, dividends, rent & capital gains

What two thirds believeWhat two thirds believe Government gives tax breaks and special favors to Government gives tax breaks and special favors to

the rich while neglecting working families and the the rich while neglecting working families and the middle class.middle class.

Government doesn't do enough to control the Government doesn't do enough to control the greedy, unethical behavior by corporations and greedy, unethical behavior by corporations and CEOs.CEOs.

Unfair trade agreements are making it harder for Unfair trade agreements are making it harder for Americans to keep good jobs.Americans to keep good jobs.

When corporations are profitable the benefits are When corporations are profitable the benefits are not shared with workers but only go to the top.not shared with workers but only go to the top.

There is a need for a narrative There is a need for a narrative to overcome realityto overcome reality

They are coming to steal your wealth – and destroy They are coming to steal your wealth – and destroy your family.your family.

Government is corrupt and inefficient. Government is corrupt and inefficient.

Do not feed it.Do not feed it. Lowering taxes increases revenue and energizes Lowering taxes increases revenue and energizes

the economy.the economy. If you tax the rich or regulate companies you will If you tax the rich or regulate companies you will

retard job growth.retard job growth. Our economy is stalling because of high taxes and Our economy is stalling because of high taxes and

a bad business environment.a bad business environment.

Narrative continuedNarrative continued The free market is a force of nature guided by an The free market is a force of nature guided by an

“invisible hand.” Disturb it at your own peril.“invisible hand.” Disturb it at your own peril. The free market is God's gift to mankind providingThe free market is God's gift to mankind providing

untold freedom and prosperity.untold freedom and prosperity. Free markets reach points of equilbrium where Free markets reach points of equilbrium where

everyone is happy.everyone is happy. Markets are self correcting – until they are not.Markets are self correcting – until they are not. The government is rather superfluous to the The government is rather superfluous to the

economy and only the private sector creates jobs economy and only the private sector creates jobs and prosperity.and prosperity.

Innoculate against realityInnoculate against reality

Communists, socialists, progressives, Communists, socialists, progressives, unions, preachers discussing unions, preachers discussing economic or social justice are your economic or social justice are your enemy. America is at its most critical enemy. America is at its most critical juncture in history.juncture in history.

When your friends can't explain why they voted for Democrats, give When your friends can't explain why they voted for Democrats, give them this list. They can then pick a reason.them this list. They can then pick a reason.

10. I voted Democrat because I believe oil companies' profits of 4% on 10. I voted Democrat because I believe oil companies' profits of 4% on a gallon of gas are obscene but the government taxing the same a gallon of gas are obscene but the government taxing the same gallon of gas at 15% isn't.gallon of gas at 15% isn't.

9. I voted Democrat because I believe the government will do a better 9. I voted Democrat because I believe the government will do a better job of spending the money I earn than I would.job of spending the money I earn than I would.

8. I voted Democrat because Freedom of speech is fine as long as 8. I voted Democrat because Freedom of speech is fine as long as nobody is offended by it.nobody is offended by it.

7. I voted Democrat because I'm way too irresponsible to own a gun, 7. I voted Democrat because I'm way too irresponsible to own a gun, and I know that my local police are all I need to protect me from and I know that my local police are all I need to protect me from murderers and thieves.murderers and thieves.

6. I voted Democrat because I believe that people who can't tell us if it 6. I voted Democrat because I believe that people who can't tell us if it will rain on Friday can tell us that the polar ice caps will melt away will rain on Friday can tell us that the polar ice caps will melt away in ten years if I don't start driving a Prius.in ten years if I don't start driving a Prius.

5. I voted Democrat because I'm not concerned about the slaughter of 5. I voted Democrat because I'm not concerned about the slaughter of millions of babies through abortion so long as we keep all death row millions of babies through abortion so long as we keep all death row inmates alive.inmates alive.

4. I voted Democrat because I think illegal aliens have a right to free 4. I voted Democrat because I think illegal aliens have a right to free health care, education, and Social Security benefits.health care, education, and Social Security benefits.

3. I voted Democrat because I believe that business should not be 3. I voted Democrat because I believe that business should not be allowed to make profits for themselves. They need to break even allowed to make profits for themselves. They need to break even and give the rest away to the government for redistribution as the and give the rest away to the government for redistribution as the democrats see fit.democrats see fit.

2. I voted Democrat because I believe liberal judges need to rewrite 2. I voted Democrat because I believe liberal judges need to rewrite the Constitution every few days to suit some fringe kooks who the Constitution every few days to suit some fringe kooks who would never get their agendas past the voters.would never get their agendas past the voters.

1. I voted Democrat because my head is so firmly1. I voted Democrat because my head is so firmly planted up my ass planted up my ass that it is unlikely that I'll ever have another point of view.that it is unlikely that I'll ever have another point of view.

Our narrativeOur narrative Their form of predatory, “Gotcha Capitalism,” has Their form of predatory, “Gotcha Capitalism,” has

failed to deliver. Been there, done that.failed to deliver. Been there, done that. Our only real freedom is to shop which is not Our only real freedom is to shop which is not

comforting when you don't even have the money comforting when you don't even have the money to do so.to do so.

Americans share at a time of need.Americans share at a time of need. Take back the wealth stolen from American Take back the wealth stolen from American

families. The “unearned increment” in which an families. The “unearned increment” in which an American hedge fund manager earns more in his American hedge fund manager earns more in his sleep than 72 average workers in a year. sleep than 72 average workers in a year.

Narrative continuedNarrative continued Big money controls Congress, the White House, the Big money controls Congress, the White House, the

courts and the fourth estate, the media. How is it courts and the fourth estate, the media. How is it possible that a person running over a highway worker is possible that a person running over a highway worker is fined $7,500 but a child downloading a song for fined $7,500 but a child downloading a song for personal use could face a $500,000 fine?personal use could face a $500,000 fine?

Money and the power to create it belong to the people – Money and the power to create it belong to the people – not to the bankers who have become parasites on the not to the bankers who have become parasites on the real economy. Pass the American Monetary Act.real economy. Pass the American Monetary Act.

Overlooked but essential element: the Supreme Court Overlooked but essential element: the Supreme Court must no longer be allowed judicial review of laws must no longer be allowed judicial review of laws passed by the people. passed by the people.

FORCE STARK CHOICES. SHIFT TAXES. WORKERS' FORCE STARK CHOICES. SHIFT TAXES. WORKERS' DIVIDEND. MILITARY WASTE.DIVIDEND. MILITARY WASTE.

Fictional candidate promises to:Fictional candidate promises to:

Eliminate ALL estate taxesEliminate ALL estate taxes Eliminate ALL corporate taxesEliminate ALL corporate taxes Eliminate ALL capital gains taxesEliminate ALL capital gains taxes Privatize “elements” of Social SecurityPrivatize “elements” of Social Security Reduce regulations on private sectorReduce regulations on private sector Freeze the minimum wageFreeze the minimum wage Balance the federal budgetBalance the federal budget Support NAFTA, CAFTA & trade dealsSupport NAFTA, CAFTA & trade deals

Oher positions:Oher positions: “ “ I am a free enterprise advocate who believes that I am a free enterprise advocate who believes that

lower taxes can encourage economic growth. lower taxes can encourage economic growth. Raising taxes stifles growth, weakens the economy Raising taxes stifles growth, weakens the economy and puts more people out of work. Our economy and puts more people out of work. Our economy works best when individuals have more of their works best when individuals have more of their income to spend, and businesses have money to income to spend, and businesses have money to invest and add jobs....I have seen firsthand the invest and add jobs....I have seen firsthand the devastating effects of economic collapse in other devastating effects of economic collapse in other countries throughout the world and under those countries throughout the world and under those situations , the people who create jobs are by far, situations , the people who create jobs are by far, the most import and treasured asset.”the most import and treasured asset.”

Candidate believes:Candidate believes:

Saving GM had bad consequences because it Saving GM had bad consequences because it weakened its domestic competitors...weakened its domestic competitors...

““The government needs to stay away. To The government needs to stay away. To energize the economy, the private sector does not energize the economy, the private sector does not want or expect the government to intercede in want or expect the government to intercede in manufacturing, banking and health care, but manufacturing, banking and health care, but rather to stay back and set the ground rules.”rather to stay back and set the ground rules.”

Candidate also proposes to:Candidate also proposes to:

Oppose “using government funds to Oppose “using government funds to stimulate and improve the economy”stimulate and improve the economy”

Oppose a “publicly-administered health Oppose a “publicly-administered health insurance option”insurance option”

Support “monetary limits on damages Support “monetary limits on damages that can be collected in malpractice that can be collected in malpractice lawsuits”lawsuits”

Positions continuedPositions continued ““Fundamental to increasing our competitiveness is our Fundamental to increasing our competitiveness is our

necessity to decrease government overhead.”necessity to decrease government overhead.” ““...some reports are now indicating that average ...some reports are now indicating that average

government salaries have risen to levels that are higher government salaries have risen to levels that are higher than the private sector. When coupled with benefits than the private sector. When coupled with benefits packages that substantially outperform the the private packages that substantially outperform the the private sector, we have to realize that we have a problem. It is sector, we have to realize that we have a problem. It is now far more lucrative to have a government job than a now far more lucrative to have a government job than a private sector job...This inbalance needs to be corrected, private sector job...This inbalance needs to be corrected, and the shift to non-value overhead must be reversed. and the shift to non-value overhead must be reversed. We must have smaller government and we must reduce We must have smaller government and we must reduce spending, not increase taxation, to close the gap.”spending, not increase taxation, to close the gap.”

Candidate on Iraq & AfghanistanCandidate on Iraq & Afghanistan ““It is now widely held that the Iraq War was It is now widely held that the Iraq War was

questionable. We probably should not have questionable. We probably should not have invaded, in spite of the constant and onging invaded, in spite of the constant and onging provocation from the Iraqi leadership. It was provocation from the Iraqi leadership. It was expensive, and we lost the goodwill of most of the expensive, and we lost the goodwill of most of the rest of world.”rest of world.”

On Afghanistan: “”We have every right to defend On Afghanistan: “”We have every right to defend ourselves and we should press this engagement to ourselves and we should press this engagement to its end. Non-support of this conflict is not an its end. Non-support of this conflict is not an alternative. We are committed and we need to alternative. We are committed and we need to finish.”finish.”