When the Rich Get Poor .... The Poor Get Destititute

Richard Adler hosts a show. It is syndicated and here in Vancouver he is broadcast on the radio station CKNW. I like Richard. I like him because he dares to call the kettle black and challenges the sensitivities of the ill informed politically correct smug as a bug army of hypocrites. I listened to his show this afternoon. It really got me thinking.

Apparently the world billionaire pool has shrunk to a mere 800, down 30% from a year ago and that is not good news because you see, it is a myth that when the rich get rich, the poor get poorer

Lets explode a myth, a long held belief that goes something like this: When the rich get rich the poor get poorer, in fact, when the rich get richer, the trickle down effect benefits everyone, yes, even the poor.

When the rich do well and increase their wealth, they are prone to spend more, travel to exotic places, buy nice cars and wear expensive clothes; they eat in the best restaurants and drink fine wine. The money they spend pays for the wages of the flight attendant, the auto worker, the factory worker, the chef and the waiter, and for those who pick the fruit off the vines that grow the grapes for the fine wine. Then, each one in turn, makes other purchases: bread from the bakery, meat from the butcher, shoes for their children, tuition for piano lessons and fees for soccer/hockey/martial arts, and perhaps a family vacation. Money circulates and there is more for everyone.

When the economy is buoyant and bellies are full, grumblings about the inequalities of life for the most part are kept under wraps. When the economy wavers the grumblings get louder; when it falters the wailing is positively ear splitting. Politicians seek such moments to make false promises of redistribution of wealth: lets take it from the rich and give it to the poor and hope to get elected on their newly found religion of equal riches for all.

Idealistic as it sounds it’s been tried before, in countries such as Russia and China, and it didn’t work. Indeed it had quite the opposit effect: everyone needed first to be equally poor before becoming equally rich, everyone that is, except for the party politic.

Lets put this equality bunk on the table for once and for all – there is none. We are not all equally smart, handsome, beautiful, talented, tall, athletic, nor powerful. No, not at all. Some are more gifted in music, some in sports, still others in sciences and maths. A rare few are very good at making money. I am glad they do.

Adler’s topic today was “We should pray for the rich to get richer” (Barstool economics) and I think you might enjoy it. Click on the transcript for a good read, or click on the audio for an even better listen.

Quick Links:
Transcript: We should pray for the rich to get richer - barstool economics
Audio: We should pray for the rick to get richer - Barstool Economics