John, I agree with the first statement but certainly do not with the second. It is possible that I don’t understand what you mean and would welcome the opportunity to.

With that said I don’t believe concentrations of wealth are destructive to the economy. At least not in a macro sense (certainly, some personal economics change with wealth concentration). When wealth is concentrated it must be invested to maintain its value or time will degrade its value with inflation. This investment leads to economic growth not destruction. When wealth isn’t concentrated it is used for consumption. The consumption itself creates demand which stimulate the economy. So, from my understanding of economics both are valuable. Sucking money out of the economy to pay for bureaucratic regulation, beyond that required to create stable markets (and internal order and self defense which insure the survival of the economy), are destructive to economies.

We need both investment (concentration) and consumption to make economic growth happen. I’d argue that free markets do this better than other mechanisms (though many have tried, and continue to try, other methods based on attempts to control human behavior rather than allowing natural human behavior to express itself).

You’re describing a corruption problem, not a wealth problem. Until we actually punish and deter corruption (both in those who would take a bribe and those who would offer one) we’re screwed.

Capitalism and a Constitutional Republic only function for a moral people. When the people collectively choose to be immoral or to look the other way when they see immorality, it all falls apart.

Was that a subconscious truth?

You’re describing a corruption problem, not a wealth problem. Until we actually punish and deter corruption (both in those who would take a bribe and those who would offer one) we’re screwed.

Capitalism and a Constitutional Republic only function for a moral people. When the people collectively choose to be immoral or to look the other way when they see immorality, it all falls apart.

That illusion: that we’re all good people who pay our taxes, that our votes matter, that the people we voted for actually have our best interest at heart… is the lie we tell ourselves so that we don’t have to get involved when corruption and fraud stare us straight in the face. That lie creates the gray areas where elected officials and government officers become nearly overnight millionaires on a 6-figure salary.

That isn’t capitalism or democracy or a constitutional republic. It’s the most successful organized crime syndicate in history. Take a stand against it when they drop a cause - even a minor one - in your lap, and I assure you, you’ll wish you were dealing with the mafia.

Well done!

Rich's categories seem pretty reasonable to me but it misses one critical point that also is driving demand. Many owners share planes. Most PC-12 owners I know, share. Same with jets. Someone just offered me 50 hours of a P300 for $150k.

So I would rephrase this to say anyone willing to spend $200k a year can participate in a meaningful level of all weather private aviation that's faster and more reliable than the airlines.
That lowers the net worth / income bar by quite a bit.

Was that a subconscious truth?

That illusion: that we’re all good people who pay our taxes, that our votes matter, that the people we voted for actually have our best interest at heart… is the lie we tell ourselves so that we don’t have to get involved when corruption and fraud stare us straight in the face. That lie creates the gray areas where elected officials and government officers become nearly overnight millionaires on a 6-figure salary.

That isn’t capitalism or democracy or a constitutional republic. It’s the most successful organized crime syndicate in history. Take a stand against it when they drop a cause - even a minor one - in your lap, and I assure you, you’ll wish you were dealing with the mafia.

You didn't respond to my point and created a strawman. I have no problem with people being wealthy. I have a problem with wealthy people wielding more than their fair share of power.

In our system, wealth leads to power, and power leads to corruption. It is human nature. We cannot help ourselves. So the question is what we can do to minimize and/or prevent this tendency towards corruption?

The reality of America is that we have no rule of law. The examples I gave above (and JGGs story) prove that. Billionaires and politicians get away with breaking laws for which I would go to jail. That is wrong. Further, if you think the system we have today is Capitalism then you are a fool. There may be a term for specifically what we have but IMO we are in an oligarchy. What happened after 2008? Not a single banker went to jail despite the fact that numerous securities laws were broken. The govt bailed out the rich at the expense of everyone else. That is not how Capitalism works. Instead of privatize the profits and the losses, we privatize the profits and socialize the losses. Warren Buffett was one of the worst in 2008. He knew that BoA would be bailed out so he "backstopped" them ahead of the govt bailout and made piles of money. That had nothing to do with his skill as an investor and everything to do with corruption.

Seriously, I could do this all day.

We need to figure out a way to decrease corruption. One way would be to confiscate all of the wealth above some value which would level the playing field when it comes to being able to influence the govt. I don't think that would actually solve the problem though as the corruption would still be there, it would just be more evenly distributed.

A radical revamp of the tax code will help. I'm a flat tax fan. Say 10% of any dollar you make, regardless of how you made it, no exemptions. If you want to make it slightly progressive you could exempt the first $30k or so of income. Your income tax filing should fit on a postcard. that would remove a ton of the shenanigans that happen today as individuals and corporations lobby (let's call it what it really is, bribe) politicians to get their own carve outs for themselves.

We also have to figure out campaign and other political finance to decrease political corruption. I don't have any answers there either, but it needs to be figured out. One option is term limits but this gives even more power to the unelected staff that stays in the Capital and ends up wielding all the power.

I like the idea that back in the "old days" the legislature was a part time job and was populated by regular people, business owners, etc. These people were in touch with their populations and they also lived among them/needed to keep them as customers, which tended to keep the corruption to a lower level.

If we can't figure this out, we are headed back to a Feudal System. Except (at least in this country) the peasants have guns.

Matt,

The absurdities of our tax code is not a corruption problem. The issues are countless to the point that there is, essentially, no constitutional or moral rationale to it. The abuses, which are fully within the code and regulations, are monumental.

But I need to read my signature. I'm tired and secure for the rest of my life unless they pass a law to simply confiscate what I have.

When Bill Clinton left the presidency, he and Hillary had a net worth of about a half million dollars. As of 2019, the Bill and Hillary foundation had assets of $312 milliion. That money will be untaxed at anytime. Chelsea will draw a salary and have a significant say in the distribution of that money for her life and her children after her.

Warren Buffet and Bill Gates will pay nothing when they die. Their children will be in similar circumstances.

Most of those hereon simply have no clue.

Jg

The story you wrote was where people were paying off a politician for access, backing and approval. THAT is corruption. Until those people are held accountable, we aren't going to get any better.

Hi John,

How do you figure? At the end of the day, the tax code that we have was created by politicians responded to the wishes of a small number of people/companies to advantage their specific activities over the activities of others. Whether dollars changed hands or not, that is corruption.

John Adams:

"...While our Country remains untainted with the Principles and manners, which are now producing desolation in so many Parts of the World: while she continues Sincere and incapable of insidious and impious Policy: We shall have the Strongest Reason to rejoice in the local destination assigned Us by Providence. But should the People of America, once become capable of that deep simulation towards one another and towards foreign nations, which assumes the Language of Justice and moderation while it is practicing Iniquity and Extravagance; and displays in the most captivating manner the charming Pictures of Candour frankness & sincerity while it is rioting in rapine and Insolence: this Country will be the most miserable Habitation in the World. Because We have no Government armed with Power capable of contending with human Passions unbridled by morality and Religion. Avarice, Ambition [and] Revenge or Galantry, would break the strongest Cords of our Constitution as a Whale goes through a Net. Our Constitution was made only for a moral and religious People. It is wholly inadequate to the government of any other...."

https://founders.archives.gov/documents ... 02-02-3102

Ian,
Have to pray that sanity returns to the masses. That much of the last 40 years has been an aberration and as a society we will come back to our senses. I’m thinking that the recent enlightenment of many to some of the insidious problems that have impacted so many may lead us back to the light. The Founder’s expected and hoped for. Up to now I think they would have been happy overall.

I think of WWII and the uniqueness of the US response upon winning with the allies. The rebuilding of their opponents. Some still remember…. It was a game changing response in my mind for the world.

You didn't respond to my point and created a strawman. I have no problem with people being wealthy. I have a problem with wealthy people wielding more than their fair share of power.

In our system, wealth leads to power, and power leads to corruption. It is human nature. We cannot help ourselves. So the question is what we can do to minimize and/or prevent this tendency towards corruption?

The reality of America is that we have no rule of law. The examples I gave above (and JGGs story) prove that. Billionaires and politicians get away with breaking laws for which I would go to jail. That is wrong. Further, if you think the system we have today is Capitalism then you are a fool. There may be a term for specifically what we have but IMO we are in an oligarchy. What happened after 2008? Not a single banker went to jail despite the fact that numerous securities laws were broken. The govt bailed out the rich at the expense of everyone else. That is not how Capitalism works. Instead of privatize the profits and the losses, we privatize the profits and socialize the losses. Warren Buffett was one of the worst in 2008. He knew that BoA would be bailed out so he "backstopped" them ahead of the govt bailout and made piles of money. That had nothing to do with his skill as an investor and everything to do with corruption.