I think this article makes a lot of sense.
I keep seeing stories on local television news, radio news, and in our local newspaper to the effect that our city has several thousand job openings in the skilled trades–welding, pipe-fitting, machinists, mechanics, CNC programming, etc. The local community college has responded by creating a trade school that is currently housed at the campus, but will be opening a downtown campus location for the trade school, too–this is great because many of our low-income families and minorities live near the downtown.
However, in the meantime, the jobs are still there and no one to fill them.
Housing in our city is really cheap–there are plenty of small ranch houses and older houses that can be purchased for 60,000. And there are plenty of rental properties, although many are not well-maintained and the landlords are definitely “absentee.” But there are also plenty of nice rentals. And recently, our downtown has renovated several older, beautiful buildings into luxury condos, which generally tend to fill up as soon as they open (the younger people with good incomes and no children want to be downtown where all the nightlife is).
I think that people aren’t moving to our city because we’re in Illinois, and that hurts. Until our State Constitution is amended and we aren’t contributing huge amounts of our taxes to pensions for State employees, we are not going to crawl out of the financial mess we are in.
Also, our city has a high crime rate. Most experts believe that this started back during Prohibition, when the various mobs used our city as a “cooling off” spot for the members, and crime became entrenched in our city. Also, we are still a “cooling off” spot for the street gangs in Chicago, as well as St. Louis, and many of our shootings are gang-related.
Finally, our city used to be a powerhouse in the world of industry, but in the early 1980s, a lot of these jobs went overseas and most of our big factories that supplied tens of thousands of good-paying jobs and were run by local people shut down. Now the factories are run by people in Europe and Asia, and they don’t really care about helping our local schools and youth organizations. We are seeing local people step up and start up factories, and some of the “Old City” people are still running their companies–these are good places to work!
Anyway, I WISH people would move here! In spite of the problems, I like my city, even though my husband and I are planning to move out when we retire.
I personally know several folks that have left Illinois and usually all for the same reasons you’ve eluded to. The wage discrepancy issue is a huge one. I fully believe that someone should be allowed to become very wealthy without being overtaxed. I don’t believe anyone should be allowed to become ultra rich, $100M is enough for anyone and yet we have a shocking number of folks on this rock worth way more. It’s been projected this planet might have it’s first trillionaire within the next 15 years. Take away the $1T and leave the owner with a paltry $100M avails enough cash for just under 10 million six figure annual salaries.
Same with California. I left about 7 years ago for many of the same reasons.
See, this is what’s know as theft. The amount doesn’t change the underlying reality of the action.
That person has done something in their life to result in that income. Usually it’s investing smart, starting businesses, etc. If you start taking their money for no reason other than that they have it, then what’s the incentive to continue development? This is the exact same issue as socialism. If I’m not going to benefit from my work then I’m not going to bother working.
I disagree with this portion of your post.
We have many wonderful things in the U.S. that were donated and/or funded by very wealthy people.
I can take you on a tour of our city and point out churches, museums, recreational facilities, parks, hospitals, schools, green spaces, works of art, charities, historic sites and buildings, etc. that were donated and continue to be funded in large part by private donations from very wealthy people.
It must be a wonderful thing to be able to be the one who steps up and says, “Don’'t cry, kids. I’ll make sure your baseball park stays right here and is in tip-tip condition for you.”
When you give something to someone else–a ride, a meal, a recreational experience, etc.–doesn’t it thrill your heart to see the joy on the face of the recipient of your gift?
Several times my husband and I have paid for the meals of a happy, loving family in restaurants, and watching their faces when they go up to the cash register and are told that “your meal has been paid for already by an anonymous patron” is so wonderful!
We have had several families in our parish donate 1 million dollars to the parish building fund–what joy they must be experiencing as they watch the construction and think about all the souls who will be blessed in our beautiful church!
I believe many fabulously wealthy people LOVE giving their money to worthy causes–just check out the list at the end of the next PBS show that you watch! How cool!–to be one of the contributors to shows like the Ken Burn’s history of Country Music! Or to fund something like Mr. Rogers’ show re-runs, or those beautiful nature shows that are on PBS!
Try pretending to be a bazillionaire on a small scale–give something to someone or something. A cake, a restaurant meal, a dinner at your house, a ticket to a show, shoveling their snow for no pay, etc. Wow. It’s great.
Your math is a tad off, unless you meant that we’ll have our first person making a trillion per year, which seems unlikely.
Nope, double checked.
Taxes are paid on net income over the course of a year. Words like “trillionaire” refer to net worth, not to taxable yearly income.
Of course, I wouldn’t put it past some Democrats to try to come up with a way to confiscate net worth.
inflate the currency beyond savings interest forcing the saver to invest or spend. works every time.
Biden, Warren, and Sanders have all proposed a wealth tax, to take a cut on net worth.
The direct method. How gauche.
I wonder if that would affect the donor level or mega donor level.
I think the donors know the game.
The promise helps wins the election but it won’t actually become law.
Very true, though even if it did, loopholes for everyone over $5M or 10M/yr. It’s not like the taxpayer can really do anything about it anyway.
But the increased spending will have already been passed,
before people realize the increased revenue won’t arrive.
Thus, more taxes on the middle class will follow.
Providing the excuse that “they simply have no choice.” And Smedley Butler thought war was a racket.
The indirect method is so much tidier. People don’t have a clue how that works.
I read the article. I think what Bloomberg is pointing out is that in the nineties the coastal states experienced a lot of wealth growth due to the Tech industry and Financial Markets. While the inland cities saw jobs go overseas in terms of blue collar work of manufacturing. So, the wealth divide is there. In Econ School in the early 2000’s they taught us the goal for this country is to be a high skilled work force. This was discussed along side Globalization and trade models favoring for nations to specialize in high skilled work. Well, as they also taught us in Econ school this hasn’t hashed out in America and is largely not feasible. Not everyone has the capacity or if they do wants to be a computer engineer or what have you.
In terms of relocation. Mike Rowe has made similar arguments. I would support programs that relocate people to where there is reasonable work in skilled labor. However, I think one of the main reasons people don’t move so often is because there are regional differences across the country. So, it would be a culture shock for someone to get up away from a supportive community of friends and family to some foreign part of America and start over. Coming from California and living in Manhattan, culture shock is a real thing. I experienced it.
As for my position on the wealthy. I don’t want to be them. So, I don’t envy their wealth or see them in any different light as the common man. Again, this was after I went to college where the vast majority were wealthy. I know their interests are not my interests. At that same school in our Core Curriculum, which everyone has to take, we were trained to be nonpolitical and watch out for own interests while balancing both sides of advantages. So, I’m middle class now and live a comfortable life. Nothing against the wealthy, but I don’t view them as anything special. So, I’m not being malicious in terms of wanting the wealthy to pay their fair share.
The only concern I see right now, from the eyes of someone who worked in Financial Research decades ago is that all the elements are there for a bad recession, if, if, if global monetary policy makers haven’t weighed the long term consequences of infusing cheap money into an Economy, with greater deregulation. So, we are doing fine now but I’m concerned about the next recession due to over leveraged households and corporations, alongside the savings and loan problems not being covered, the influence of foreign markets especially China on the Stock market, and of course our deficit. But again, Monetary Policy Makers may have weighed all this. Ultimately me and my siblings are all fine. But again, if we get another great recession or stagnation then the wealth divide will increase further and our political system will be even more radical.
Six figure = $100,000 or more. 10,000,000 X 100,000 = 1Trillion. Where are you proposing to invest a Trillion dollars to get a 100% annual return? Show me your ways.
I heard on the news this morning that both Biden and Warren are begging their supporters for money to continue their campaign.
Is it possible that the rich people don’t want to donate any money to people who are proposing that rich people have to be taxed more than regular folks? Rich people didn’t get rich being stupid.
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