[quote=SDEngineer]
The point I am making is that under our current system, being “fair” INEVITABLY leads to an inequitable distribution between rich and poor, making it more and more difficult for that “vertical social mobility” you point out to occur, as more money and power accumulate in the hands of the extremely well off, and less and less is paid towards those closer to the bottom. As more and more capital accumulates at the top, it becomes more difficult for those closer to the bottom to break into the top – entry barriers rise (startup fees for businesses, educational fees, etc), entry level jobs pay less and less, more mid level jobs are outsourced, and numerous other issues arise.
This has already had significant effects. In my parents generation, the US was truly the “Land of Opportunity” – at that time, the US was one of the TOP ranked countries in terms of vertical social mobility. In ONE generation it has dropped from being one of the top ranked, to being one of the bottom ranked (ahead of only the UK in the major western democracies). Why? Because fewer and fewer jobs exist (relative to population size) which allow for upward mobility, education (a key component to upward mobility) is FAR more expensive now, less and less opportunities arise for small businesses (much fewer “Main St” type businesses can operate in the era of the Big Box extreme low pay/low margin stores), etc.
[/quote]
Do you have proof of this limited vertical mobility you’re claiming to exist? Some how, I just don’t see it. We still have much lower unemployment rate than France, which are much more socialistic than we are. I see plenty of smart people doing start-ups and making it big or just move up the corporate rank because they’re very smart and know how to play politics. I also know people who work extremely hard and be very frugal and doing very well for themselves even though they work in what you’d call middle class jobs. Once you accumulate enough capital, the stock market is wide open for everyone. You can make it big in options if you’re good, or put your $ in mutual funds and let the index work for you. I just don’t believe the theory that it’s that much harder today vs 20 years ago. You also forgot that the amount of people who make millions now is much larger than 20 years ago. So to me, it seems like the smart and hard working will always find way to get rich.
Knowing the rule of the game and use it to your advantage is how you succeed in this country. Bitching, whining, and asking for handouts will not get your very far. If you change the game, guess what, the smart and nimble will just adapt to the new rules.
Also, last I check, increasing tax on the business owners will not decrease their profit, they’ll just squeeze their employees.
