The Problem of Inequality

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Left unfettered, the capitalist system always has and always will produce a rising standard of living for the poor and the middle class, and for the people as a whole. It also produces a constant circulation of wealth among economic classes, ensuring that great capitalist enterprises will eventually be overwhelmed by competition, and great private fortunes will soon be dissipated by their heirs, who will be replaced in the economic hierarchy by nouveaux riches. Another way of putting this is that the poor will get richer and the rich will get poorer — but there will always be large differences of wealth between the people who are most successful at the moment and the people who aren’t.

If you don’t like that, you can consider what happens under the precapitalist system, which fools are always trying to revive — the system in which the state constantly tries to control economic differences by redistributing wealth, thereby destroying it. Isabel Paterson said it best: “Destitution is easily distributed. It’s the one thing political power can insure you.”

The poor will get richer and the rich will get poorer — but there will always be large differences of wealth between the people who are most successful at the moment and the people who aren’t.

Recently, after reading some of Hillary’s Clinton’s demagogic rants about “inequality,” I happened on some words that reminded me of the unfortunate fact that total ignorance of political economy is nothing new. The words are part of an essay, “The Absurd Effort to Make the World Over,” by the early sociologist William Graham Sumner. They were published in 1894, and they show how persistent economic fallacies, and their political exploitation, have been. They were chronic even in Sumner’s time, which was supposedly the great age of laissez-faire.

Sumner writes:

It is repeated until it has become a commonplace which people are afraid to question, that there is some social danger in the possession of large amounts of wealth by individuals. I ask, Why? I heard a lecture two years ago by a man who holds perhaps the first chair of political economy in the world. He said, among other things, that there was great danger in our day from great accumulations; that this danger ought to be met by taxation, and he referred to the fortune of the Rothschilds and to the great fortunes made in America to prove his point. He omitted, however, to state in what the danger consisted or to specify what harm has ever been done by the Rothschild fortunes or by the great fortunes accumulated in America. It seemed to me that the assertions he was making, and the measures he was recommending, ex-cathedra, were very serious to be thrown out so recklessly. It is hardly to be expected that novelists, popular magazinists, amateur economists, and politicians will be more responsible. It would be easy, however, to show what good is done by accumulations of capital in a few hands — that is, under close and direct management, permitting prompt and accurate application; also to tell what harm is done by loose and unfounded denunciations of any social component or any social group. In the recent debates on the income tax the assumption that great accumulations of wealth are socially harmful and ought to be broken down by taxation was treated as an axiom, and we had direct proof how dangerous it is to fit out the average politician with such unverified and unverifiable dogmas as his warrant for his modes of handling the direful tool of taxation.

Great figures are set out as to the magnitude of certain fortunes and the proportionate amount of the national wealth held by a fraction of the population, and eloquent exclamation points are set against them. If the figures were beyond criticism, what would they prove? Where is the rich man who is oppressing anybody? If there was one, the newspapers would ring with it. . . . Wealth, in itself considered, is only power, like steam, or electricity, or knowledge. The question of its good or ill turns on the question how it will be used. To prove any harm in aggregations of wealth it must be shown that great wealth is, as a rule, in the ordinary course of social affairs, put to a mischievous use. This cannot be shown beyond the very slightest degree, if at all.

I can think of only one exception to this line of argument, but the exception has become a mighty one. When people become convinced that wealth is indeed dangerous, and they create a political culture based on the fallacies Sumner reproved, they transform their fears into reality; they make wealth dangerous. Most rich people are politically harmless, but some act on the fallacies they have been taught, and try to better the country by political activism. The heirs of Ford, Rockefeller, Kennedy, and many others have done this. George Soros is doing it right now. Almost always, these people work toward constricting the capitalist system and therefore (strange, unanticipated, and unrecognized effect) toward freezing poor people in their poverty. And as government, under such influences, attains more power, it attains the power to generate fortunes directly. This, not the capitalist system, is the origin of the vast Clinton fortune, a fortune now being used, as was the fortune of Julius Caesar, the richest man in Rome, to devastate the republic in which it grew.

This, I believe, may be the great domestic political problem of our time. (We have a lot of others, I know.) How will libertarians address it?




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The Stains of Social Justice

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The United Nations defines social justice as "the fair and compassionate distribution of the fruits of economic growth." Furthermore, social justice is impossible "without strong and coherent redistributive policies conceived and implemented by public agencies." Social justice is an axiom held dearly by socialists — apparently reconciled by the belief that great wealth and prosperity would have been created in places such as North Korea, East Germany, Cuba, and Venezuela, if only the "strong and coherent redistributive policies" had been, well, stronger and more coherent. In reality, social justice brings stagnation and decline, which, to socialists, look like fruit ever ripening into new and increasingly meddlesome forms of social justice. To socialists, distributing poverty and despair (even abysmal poverty and despair) is acceptable, as long as they are handling the distribution.

The socialists (more precisely, eco-socialists) in charge of US redistribution have managed to create a new American phenomenon: permanent economic stagnation. While speaking at the November 2013 IMF Economic Forum, Harvard University economist Larry Summers, was puzzled as to why, after four years, the US economy had not yet recovered. Noting that efforts to prevent a future crisis might be counterproductive, he concluded his speech by saying, "We may well need, in the years ahead, to think about how we manage an economy in which the zero nominal interest rate is a chronic and systemic inhibitor of economic activity, holding our economies back, below their potential."

Translation: even at extremely low interest rates, bank lending has been flat since 2009 because businesses are afraid to invest in an economy tainted by socialist mischief. Since social justice (delivered through the redistributive policies of Climate Change, the Stimulus, Obamacare, Dodd-Frank, etc.) is "a chronic and systemic inhibitor of economic activity;" we need to think about how to manage future stagnation, after some unspecified number of "years ahead" in continuation of the present stagnation.

The socialists in charge of US redistribution have managed to create a new American phenomenon: permanent economic stagnation.

Think about that. In the election year of 2008, we had a do-something-about-it-now problem. Today, in 2014, as the stagnation persists, is Washington ready to do something about it? No. Will Washington be ready to do something in the years ahead? No. But by then it will be ready to think about it. Maybe. The 2008 promises of jobs and economic growth were replaced by the vast, warm fuzziness of social justice vagaries such as equality, diversity, fairness, dignity, renewability, and sustainability. What happened to the grandiose 2008 plan for economic revitalization? In 2009, eco-socialist lawyers and academics reached into their magic hat of "strong and coherent redistributive policies" and pulled out a plan to build a new economy. Why fix an outdated economy that was driven by greed, racism, overconsumption, and planet-heating "fuels of yesterday"? Today, more than five years into the new economy of stultifying compassionate distribution, they reached back in and pulled out a Plan B: inurement.

But as this elite cabal was settling into a genial Washington DC, their big heads bubbling with theories (touted by bigger-headed sociologists and environmentalists) on how to build a shiny new economy, a handful of crass entrepreneurs was settling into the rude world of fracking, creating an oil and gas revolution that would blight the dreamscape of the social justice crowd. The New York Times article "North Dakota Went Boom" eloquently describes the discovery and development of the Bakken Shale Formation in western North Dakota, a rugged, empty area blemished by "roaring fires and messy drill pads." But the blemishes are producing a flood of jobs, prosperity, and cheap energy, infuriating eco-socialists, who have produced but a trickle of anything with their centrally planned economy of government-approved renewable energy. Then there is the horror that the great wealth befalling North Dakota is the result of "an economic imperative that dates back to the triumph of the treaty breakers who usurped the Native Americans and commodified the land, and to the waves that came in their wake, the great white hunters who cleaned out the buffalo." God have mercy. Has there ever been social justice in North Dakota?

Eco-socialists are unwanted in North Dakota, where household income is $2,214 higher than the national average, unemployment is the nation's lowest, and budget surpluses accrue even after major income tax cuts (more than 50% since 2009). But many of them can be found at the North Dakota border, weeping over economic fruits they are helpless to distribute. Tears blind them to "the allure of a derrick dressed up in lights and looming 10 stories over a desolate landscape where the leading academic solution to social and economic stagnation had been to surrender and let the land lapse into buffalo commons." Alas, the North Dakota buffalo commons strains the vision of prying eco-socialists peering into the state. It is a pathetically small plot (only 4% of North Dakota is federal land), barely large enough to hold a respectable climate change sit-in without its whimpers being heard in at least a few of the more than 6,000 wealth-producing drilling sites on private land, where 90% of the wells reside. Other eco-socialists are faced with the task of hawking income inequality or green jobs (such as solar panel installation at $38,000 per year) to the sullied hordes of climate deniers rushing into the state, on their way to oil and gas fields where the average annual wage is $90,225.

It has been said that veterans of the oil patch can estimate the productive capacity of an oil well from the size of its flare gas flame (which burns off the natural gas contained in the well). A seasoned eco-socialist can no doubt make a similar estimate based on the size of the yellow puddle at his stomping feet, as he rages against the carbon emissions that flaring spews into the atmosphere. Out of self-interest, oil companies eventually build gas-gathering pipelines that channel the gas to a processing plant, where they make even more money –while saving the gas. But for wells on federal land, these pipelines require the bureaucratic approval of the National Environmental Policy Act (NEPA) — the same law that has delayed the Keystone XL Pipeline for more than five years. Oil companies, therefore, are forced to flare off gas while they wait for their permits. In Wyoming, for example, the average wait time is seven years. According to Forbes Magazine, the state's "lost opportunity cost associated with the delay of oil and natural gas development is $22 billion in labor income and $90 billion in economic output over a ten-year period." Not a problem, when social justice is at stake.

Eco-socialists are unwanted in North Dakota, where household income is $2,214 higher than the national average, unemployment is the nation's lowest.

Under social justice policies, GDP growth during the "recovery" has averaged 2% annually, dropping to an alarming -2.9% in the most recent quarter. This is stagnation. But to eco-socialists, it is not failure. It is merely an economic aberration that their intellectuals will have to think about managing in the years ahead. In the world of social justice, success is not measured by wealth, growth, jobs, or income; the expansion of "strong and coherent redistributive policies" is the only yardstick. Accordingly, with $17 trillion of debt, medium household income down 8.3%, labor participation down to 62.8% (the lowest since 1978), and 46.5 million Americans living in poverty, eco-socialists shamelessly exclaim that we are "heading in the right direction."

And that they have "more work to do." That work largely involves stifling the US oil and gas industry — the only bright spot in an otherwise moribund economy. While forging the new green economy, eco-socialists have suppressed oil (down 6%) and gas (down 28%) production on federal land. Fortunately for our stagnating economy, oil and gas production has increased dramatically (61% and 33%, respectively) on non-federal land. Thanks to entrepreneurs such as Harold Hamm (who discovered the prolific Bakken shale "play") and innovators who developed fracking and horizontal drilling, the US oil and gas revolution has created well over one million jobs, reduced annual oil imports by 800 million barrels, slashed our annual energy bill by $100 billion, and cut carbon emissions by 300 million tons. It has also increased GDP by more than 1.7% — a contribution without which eco-socialists could not claim (at least not shamelessly) that we are "heading in the right direction."

While most of us celebrate these achievements, eco-socialists fear them. Their vision of social justice calls for our vast oil and gas resources to "lapse into buffalo commons." Otherwise, the income inequality gap might widen or the earth's temperature might rise (by the end of the century) or a flame might shoot out of someone's faucet, etc. Besides, the economic contributions from the oil and gas revolution amplify the failure of their immense, whimsical green energy investments, and expose the disingenuous tenets of their overreaching scheme to rebuild the US economy. According to the insightful Hamm, “That’s why these guys are raising so much hell, because suddenly they realize that everything they’ve invested in isn’t going to work . . . They know they’re misleading the public.”

Nevertheless, the social justice parade marches forward. Armed with NEPA, the Clean Air Act, the Clean Water Act, the Endangered Species Act, and other social justice regulations, eco-socialists won't be happy until our utility bills "necessarily skyrocket" and the price of US gasoline matches the price in Europe — thereby paving the way for government-approved solar panels, windmills, and electric cars. Forget about oil and gas. They are yesterday's fuels, dirty and finite. We will have renewable energy in a sustainable economy, even if it takes permanent stagnation to get there.

Social justice leads to stagnation, which leads to scarcity, which leads to rationing, which is what eco-socialists do best.

The good news is that America's oil and gas boom is winning. Eco-socialists, in denial of its benefits, are resigned to the desperate hope that it will be like other booms — short-lived. But estimates of its increasing longevity have revealed a brown stain on the seat of the pants of eco-socialism. There is no stagnation in North Dakota, where energy experts expect the Bakken play to last for 100 years or more. There, the odor of flare gas is preferable to the stench of socialism and, with an annual salary of $90,000, oil field workers can buy all the social justice they need.

This sentiment, of course, is shared by Texas, home to the Eagle Ford and the Permian Basin, and the leading oil and natural gas producing state in the nation. And recent breakthroughs in drilling technologies have the boom spreading to Oklahoma, Utah, Colorado, Wyoming, and New Mexico, where the combined shale oil production has increased 57% in the last three years — causing, no doubt, a proportionate enlargement of that nasty brown stain. Mr. Hamm — whose oil company is developing a drill pad packing technique that could put more than 100,000 wells into North Dakota — would probably estimate a much larger and darker stain.

Social justice leads to stagnation, which leads to scarcity, which leads to rationing, which is what eco-socialists do best — with their "strong and coherent redistributive policies." They believe that through such policies we now have affordable healthcare, a kinder Wall Street, a cutting-edge renewable energy industry, and a world-class education system. Soon, electric vehicles will pour out of a rejuvenated Detroit, millions of Americans will work at high-paying green jobs, and solar panels and windmills will bring us energy independence. By then, their economists may have begun thinking about how to manage the permanent stagnation. That is their story, and they are sticking to it, even if it means squandering the world's most prolific source of fossil fuel energy, a resource that, if properly exploited, could revitalize the economy overnight, increase the wealth of every one of us, and finance self-help programs for anyone still afflicted by social injustice.

Nothing will change the minds of eco-socialists. But America's enormous, expanding oil and gas revolution may eventually make them change their pants.




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Inequality: The Democrats’ Defining Issue

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Those of us who have been troubled by issues such as economic decline, unemployment, public debt, healthcare, foreign policy, and federal power should know that our worries have been misplaced. President Obama now tells us that income inequality is the principal concern — the "defining issue of our time," he says. It's a timely discovery, what with America's victims of inequality looking ahead to the November congressional elections.

The Democrat Party (protector and savior of all such victims) had to choose between inequality and the unfolding Obamacare debacle. That was a no-brainer. Naturally, Joe Biden made the call, counseling that "income inequality is our issue this year." After six years of rewarding the rich and punishing the poor and middle class, newly impassioned Democrats declared inequality as their battle cry for 2014. Why not? Six months of melodramatic hypocrisy spent on attacking plutocrats is wildly preferable to six months of cognitive dissonance spent on defending Obamacare.

In a speech last December, Mr. Obama launched his new crusade against patrimonial wealth, promising to devote the remainder of his presidency to this "dangerous and growing inequality." It is a phenomenon he has observed for many years — perhaps as early as his first reading of Das Kapital. His monologues on the subject (e.g., his notorious December 2011 Osawatomie, Kansas speech) voicethe deeply felt, though tacit, theme that capitalism is to blame for the widening income gap between the rich (the bourgeoisie) and the rest of us (the proletariat). He presents his observations as evidence both of capitalism's failure and of his fervid concern for correcting its excesses. And there is what he doesn't say, what he would like to exclaim with glee: that Karl Marx was right.

It is difficult to imagine any set of policies that could punish our economy and darken our future as much as the Democrat policies have.

Because of capitalism, the president tells us, "the basic bargain at the heart of our economy has frayed." To Obama, free market capitalism is a mysterious, chaotic game in which the winners prosper through deceit and theft, allowing but a meager share of their vast wealth to trickle down to the poor and middle class. It's a "theory," he says, that "fits well on a bumper sticker," but "it doesn’t work. It has never worked." Who — apart from Vladimir Lenin, Joseph Stalin, Mao Tse-Tung, Fidel Castro, and Paul Krugman — could have put it better?

In his economic homilies, Obama excoriates capitalists who tell us that "the market will take care of everything" and that "if we just cut more regulations and cut more taxes — especially for the wealthy — our economy will grow stronger." He laments that "a family in the top 1% has a net worth 288 times higher than the typical family," while"a child born into the bottom 20% has a less than 1-in-20 shot at making it to the top." He reminds average Americans of deep frustrations "rooted in the nagging sense that no matter how hard they work, the deck is stacked against them." Marx could not have taken a more sinister view.

But the capitalism Obama decries is not free market capitalism. The latter predated his selective observations, performing marvelously well for America's first two centuries. The capitalism that Obama rails against is the patriarchal, democratic crony capitalism that politicians of his ilk (including every president from Lyndon B. Johnson to George W. Bush) created. That system — which is precariously held together by the political influence of the rich and the "fatal conceit" of central planners — has failed, and failed chronically since the advent of the "Great Society." Today, after five years of eco-socialism, Obama outshines all his predecessors. The inequality gap has become so intolerably large under his stewardship that he himself declared it as a national issue. Well, somebody had to do it.

During his 2012 reelection campaign, Obama told audiences what the weak regulation of the Bush administration had accomplished: "Insurance companies that jacked up people's premiums with impunity and denied care to patients who were sick, mortgage lenders that tricked families into buying homes they couldn't afford, a financial sector where irresponsibility and lack of basic oversight nearly destroyed our entire economy." As 2014 election campaigns begin, voters who were among Obama's cheering crowds in 2012 may ask what the strong regulation of the Obama administration has accomplished. They, and Democrat candidates, won't like the answer.

In 2007, the share of the nation’s income earned by the richest 1% was 18%. Today, that elite group's share has increased to 22%. Ninety-five percent of the income gains since Obama took office have gone to the top 1%. Yet, during that period (aka, the "recovery"), median annual household income dropped by 4.4%, the number of people in poverty increased by 6,667,000, and Democrats, with a new battle cry but still blaming George Bush, gained 100% of the nation's inequality bullshit.

The tax and regulate policies of Democrats (Obamacare, Dodd-Frank, EPA and DOE regulations, to name a few) are wreaking havoc on the very groups they are supposed to help. A March 2014 report ('The Irony of ObamaCare: Making Inequality Worse”) declared that Obamacare "threatens the middle class with higher premiums, loss of hours, and a shift to part-time work and less comprehensive coverage." It was published by a labor union — one of many angered by Obamacare. With the Dodd-Frank reforms, minorities, low-income people, and the young are being shut out of mainstream banking. The economic impact and regulatory compliance cost, estimated to be $1.9 trillion annually, will be passed on to people in the middle class, who haven't been shut out — yet.

For black Americans, the poverty rate has increased from 12% in 2008 to 16.1% today; their unemployment remains twice the rate for white Americans. According to radio talk-show host Tavis Smiley, "the data is going to indicate sadly that when the Obama administration is over, black people will have lost ground in every single leading economic indicator category."

Meanwhile, the stock market is doing well, for the rich; the S&P 500 is up 52.8% since the passage of Obamacare in March 2010. How have health insurance companies fared — companies that were allegedly jacking up people's premiums with impunity and denying care to the sick? The top five are up 100.7%. And what about banks, which were allegedly tricking families into buying homes they couldn't afford? According to a February 2014 FDIC report, their profits are at an all-time high.

Democrats argue that the inequality gap would grow wider under Republican leadership. Not to defend Republicans, but it is difficult to imagine any set of policies that could punish our economy and darken our future as much as the Democrat policies have. When it comes to the advancement of inequality, Democrats are unrivalled. Clowns could do no worse.

For black Americans, the poverty rate has increased from 12% in 2008 to 16.1% today.

Clowns would come up with better ideas than Obama's latest offerings: inequality busters such as “equal pay for equal work,” universal preschool, and raising the minimum wage. They would know that impoverished burger flippers making $7.25 an hour would remain in poverty at Obama's recommended pay of $10.10 an hour, as would the half million people who, according to the CBO, would lose their jobs as a result. Clowns would reject the assertion that women earn only 77% of what men earn for the same work. Male clowns would worry about the wholesale job losses and wage cuts that would ensue if employers acted on the idea that they are overpaying men by 23%.

Then there are Democrat anti-inequality panderisms such as the "Stop Subsidizing Multi-Million Dollar Corporate Bonuses Act," sponsored by Senators Blumenthal (CT) and Reed (RI). Can an Occupy Wall Street pleaser such as the "Use Congressional Authority and Oversight to Ensure that Appropriate Federal Agencies Fully Investigate and Prosecute the Wall Street Criminals Act" be far behind?

The policies of Democrats, however well-intentioned, have backfired. They have exacerbated inequality, a result that, after almost six years of economic stagnation, high unemployment, staggering debt, grinding income decline, etc., clowns would notice. If for no other reason than comic relief, they would reject Democrat ideas — all two of them: redistribution of wealth and regulation of everything.

Clowns would tease us with a little free-market capitalism and tickle us with our own newly discovered energy bonanza, especially the vast taboo region lying fallow beneath federal land. After all, there is no clown ideology against fossil fuels. Besides, clowns would be awestruck by the giant nodding donkeys erected on private land, producing enormous wealth and prosperity in places like Texas and North Dakota. Think of the chuckle that clowns would get from telling a burger flipper that, while he waits for Obama's $10.10 an hour to kick in, he could work at a MacDonald's for $18 an hour . . . in North Dakota. Then there's the sidesplitter involving a blue-collar guy who makes $80,000 a year driving a tanker truck full of Bakken shale oil from the Williston Basin to refineries in the South . . . because Obama won't use his pen and cellphone to approve the Keystone XL pipeline.

The rich do very well under Republican or Democrat administrations. Has it ever been otherwise? But under the Obama administration, the rich have grown extraordinarily wealthier, and the inequality gap has grown extraordinarily wider, than under the Bush administration. The stimulus, Obamacare, Dodd-Frank, EPA and DOE regulations, and other Democrat policies — all big (federal) government efforts, promising to humble the rich, uplift the poor, and strengthen the middle class — have nefariously combined to produce the opposite effect. As the mid-term elections near, "Redistribute and Regulate" bumper stickers won't make many voters think that Democrats will do any better than clowns to shrink the inequality gap. The real challenge for Democrats is not to stamp out inequality, but to escape from the dark shadow of Obama's anti-capitalism, anti-fossil fuel, eco-socialist ideology, where most candidates are discovering a "nagging sense" that "the deck is stacked against them."




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Only 14 Percent?

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Each time Barack Obama and his supporters sniff disdainfully at the 14% of his income that Mitt Romney paid in taxes, I want to shout at them to acknowledge the obvious: Romney does not have earned income.

In the private sector, companies expect their employees to come to work every day. Romney isn’t gainfully employed, because he has spent the past two years campaigning for office. Of course, Barack Obama has spent the past three years campaigning. He has missed important security briefings and delegated most of his duties to others. He does very little actual work and campaigns on the taxpayers’ dime. If you or I tried that, we would have to use up all our vacation days and then take time off without pay — assuming that our employers would be willing to keep us on the books (and the benefits) while we are off job hunting.

Romney paid a higher tax rate when he was working and earning an income. He pays plenty now on his investment income (the principal of which was already taxed at earned-income rates). More important to me than his 14% tax rate is the fact that he has chosen to give away nearly 30% of his income to charities and causes he believes in. He has created jobs throughout his career, and he has given failing companies a second chance. He is, in fact, a great example of how the private sector should function.




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The Golden Years Really Are Golden

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A recent AP story caught my eye, since it bears upon an issue on which I have oft written — the coming pension tsunami, caused by the retirement of us Infamous Boomers.

It tells the news about the wealth gap between the Old and the Young. The gap is now the widest in American history. Despite occasional lurid stories about a grandmother eating cat food shortly before being wheeled off a cliff, the wealth gap favors . . . the old!

And the gap is enormous. Census data reveal that households headed by someone 65 or older have an average net worth 47 times greater than that of households headed by someone under 35. The median net worth of households headed by a person 65 or older is about $170,000, compared to a pathetic $3,662 of those headed by someone 34 or younger.

Moreover, the gap continues to widen. It has doubled over the past six years, and has increased fivefold during the past 25 years — even after adjustments are made for inflation. Astonishing, no?

There are a number of reasons for the declining relative fortunes of the young. One is that the Obama recession has totally creamed the young, especially young men. It is not for nothing that this has been called the “he-cession.” Besides that reason (though related to it), is the fact that young people are taking longer and accumulating more debt to get their degrees. And of course others are still paying mortgages on homes that have fallen disastrously in value.

The disparity is bleak, and in a way — considering all the granny-eating-cat-food propaganda — ironic. But the trend is decidedly the friend of the elderly: over the past quarter century, the wealth of households headed by the elderly rose by a whopping 42%, while the wealth of households headed by the young (under 35) declined by a dizzying 68%.

As if that weren’t bad enough, 37% of households headed by the young have a zero or even negative net worth! That is an increase of over 100% since 1984 (when the census first started keeping track of this happy stuff), and it is massive compared to the only 8% of elderly-headed households so cursed. And the median income of elderly-headed households has grown at a rate 400% greater than that for younger-headed households.

Net worth is here defined just as you would expect: by adding the value of homes, personal possessions, stacks, bonds, savings, and other property (such as cars, boats, and vacation properties), and subtracting credit card, auto, home, student loan, and other debts.

Now, how does the AARP — those redistributionist pirates who are always so intent on transferring assets from the young to the elderly — respond to the news that the 47 to 1 gap in net worth favoring the elderly is the highest in history? Of course, it greets it with greedy denial.

One Nancy Holland, a propagandist — pardon me, an executive vice-president — of the AARP puts it in the typical AARP spit-in-your-face-avariciously-aggressive fashion: “Millions of older Americans today continue to struggle to make ends meet. Many older Americans do own their homes, but plummeting housing values — along with dwindling savings, stagnant pensions, and prolonged periods of unemployment — have taken their toll.”

In short, screw the young people. As if their own homes and savings hadn’t been hard by this progressive liberal recession. As if they too hadn’t suffered unemployment. As if they had freaking pensions to rely on!

Our country is, alas, headed into the fiscal dustbin of history. Its aggregate national debt is approaching the dimensions of Greek tragedy, if not of Greece itself. But the AARP continues to wage a jihad against all entitlement program reforms. Future historians — if there are any who aren’t progressive liberals, hence wedded to the ideology of the redistributionist state — will record with incredulity the bizarre structure of a politico-economic system that in defiance of biological reality systematically starved the young to glut the old.

Maybe we need ads showing the grandkids eating cat food as they are pushed from a cliff.




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