“We’re not broke. This country is not broke. The state of Wisconsin is not broke. There is a ton of cash. Trillions of dollars of it. But it is a finite amount. What’s happened is we’ve allowed a vast majority of that cash to be concentrate in the hands of just a few people. And they’re not circulating that cash. They’re sitting on the money, they’re using it for their own — they’re putting it someplace else with no interest in helping you with your life, with that money. We’ve allowed them to take that. That’s not theirs, that’s a national resource, that’s ours. We all have this — we all benefit from this or we all suffer as a result of not having it.” – Michael Moore
He is consistent in that he is wrong on so many levels. Other than that, his statement is a comedy of errors. Except that his liberal, union audience is eating out of his hand. Is it simply ignorance from the public? Is it a result of decades of union brain-washing? The answers matter because as long as the entitlement mentality persists in this country to the extent that it does, we won’t be able to solve our financial woes.
His first claim is that we aren’t broke. Hardly worth addressing when we have accumulated over $14 trillion in debt. His twist on this fact is that the wealthy elite have stolen and hoarded all of the wealth of this country and if we just tax them enough, we’ll get it all back. Back to basic economics again. The taxation he speaks of is an increase in the income tax rate. The wealth he claims they are hoarding is not income, it is assets already obtained and thus won’t be confiscated through higher tax rates. Same goes for increasing capital gains rates. If what he says is true and they are keeping all this wealth parked on the sidelines, raising capital gains won’t confiscate it either. There is always the estate tax for when the rich die, but unless he’s prepared to have the Obama death panels pro-actively take action exclusively on the rich say, starting today, that won’t bring any immediate relief.
Next, he claims there is a ton of cash, yet it is a finite amount. Clearly, he and helicopter Ben haven’t had lunch lately and discussed QE1 and QE2. Bernanke is on a mission to devalue and destroy the dollar by printing buku amounts of it. He has no idea what Moore is talking about when it comes to “finite”. More basic economics. If the money supply were truly finite as Moore suggests, GDP growth would not be possible. The economy could never grow as we would be merely diluting the existing pie of wealth. Not that the left doesn’t relish the thought of redistributing the wealth, even they want the available pie to grow larger. They are getting their wish in a backward manner as Bernanke’s cash increase is leading to more theoretical cash in existence and thus more is available to redistribute. This doesn’t happen in reality, but these people don’t dwell in reality. The fact remains that the pie of wealth must expand for the economy to grow. Printing more money serves to devalue goods and services (i.e inflation) resulting in a net gain of zero. You can’t cheat the fundamentals of economics.
Next, he really shows his ignorance. First he claims the rich are simply sitting on their wealth. Not true. It’s not under their mattresses or in mason jars in the backyard. Then he contradicts himself and says that they do actually put it someplace, just not where you will benefit. Where is this magical, mystery place? Could it be their own personal investments? What he appears to say is that they aren’t spending that money hiring people. Why not? How about an anti-business climate? High taxes, excessive regulation and the fact that businesses have leaned out since 2008 and are now ultra-efficient and don’t need the staff?
It’s really no mystery at all. Wealthy people have this crazy notion. They like to take their wealth and invest it to make even more money. But they don’t like to invest it in bad or risky investment vehicles. That’s what business in America is at the moment. So instead, they invest off-shore or in personal investments. But rest assured, they aren’t sitting idle with their assets and not making any return on them. But guess what? Even when they park their money in mutual funds or bonds or stocks rather than directly into expanding businesses, that capital is in the market and available.
This is not where big government, wealth-redistributors want it. It’s not where public-sector unions want it. It’s not where the pork-barrel spenders want it. Moore calls it a national resource and that it belongs to us. What an ass! You or I have absolutely zero “right” to anyone’s private property. Now, if he’s pissed off that we have “allowed” the rich to become rich, it doesn’t get any more hypocritical than that. You don’t see him returning his excessive wealth. Nor any of the other big libs that publicly complain about under-taxation.
And their solution? Attempt to increase the greatest slush fund ponzi-scheme ever created (the IRS) and hand the wealth over to corrupt politicians in the pocket of lobbyists and the very same evil corporations they trash? To be so simple-minded and believe that this wealth nirvana would ever be redistributed back to the middle class? Can they be so naive as to believe that Washington is any less corrupt than Wall Street and corporate America? No, they really aren’t. Not at all. Michael Moore is nowhere near as stupid as he appears. He does, however, believe the American public is that dumb. He and his ilk believe they can really have it all. The power and the wealth.
It’s well documented that you could confiscate 100% of the income of the rich and still not even approach solving our financial problems. What an illogical concept. To think that any American considered wealthy would still continue to bust their hump increasing their earnings past a point in which the government would confiscate it. Do these delusional liberals really believe people would do this out of some sense of duty? If their convoluted view were really feasible, why not eliminate income taxes below $250k and merely tax the rich to satisfy this country’s massive spending appetite? Because it couldn’t possibly work.
The entire argument from fools like Michael Moore is just a lip service argument intended to give the illusion that the democrat party is for the little guy. He’s not serious about it, but knows that it plays well to fire up the constituents. Not much different from the miniscule $6 billion in budget cuts proposed by the left in an attempt to give the illusion of budget cutting. It’s never about the substance, only about the symbolism.
It’s a sobering assessment of the American people in reality. Despite living in the internet age when the proliferation of information has never been higher, so many Americans still live in the dark concerning basic economic fundamentals. One would think the battle is to keep our free-spending politicians in check, yet it’s really with the people themselves. The Cloward-Pivens strategy may be immoral, but don’t say it doesn’t work. Crack dealers on the street corner know it works, that’s why they hand out free samples to create addicts.
Restoring high income tax rates in an attempt to confiscate wealth from the rich is a certain failure. It’s tried and true. Raise the rates and reduce the revenue. Rich people are not stupid. What it will do is further curtail investment expanding the economy and growing our way out of the debt crisis. If we don’t make substantive improvements in educating the public very soon, none of this will matter anymore. We may be there already. At some point, your options go away and instead we are left to pick-up the pieces. As long as people like Michael Moore have a stage, we are heading in the wrong direction.