Tag Archives: current-events

Mr. Darcy & American Aristocracy

So apparently Romney pays around 13% a year in taxes on an income of over 20 million dollars.  Paul Ryan paid 20% on $323,000 in 2011.  And many of the most wealthy people in the United States, billionaires even, are paying less than 10% (CNN).

This is because wealthy individuals gain most of their income through return on investments, quite often in the form of capital gains which is taxed at a lower rate.  This is because not all real income is real income.  Some of it cannot be spent on whatever the new owner of fake income wants to buy.  And much of it cannot be deposited in a savings account because it can spontaneously combust.

Lately I have had a strong sense that I live in an immoral society—tt assails me like a stiff wind—not because everything about America is awful, indeed I love my country, but because we are thoroughly corrupt in at least this respect: as a society we have decided to favor, and to create, an upper-class.

Until quite recently, the English aristocracy was alive and well, and dominated English society.  I love Victorian movies and books (I’m still a hardass though!) and recently my curiosity was piqued by the constant discussion of income, “Mr. Darcy has 20,000 pounds a year!”  Do they mean wages, capital gains, or what?

I looked into it, and it turns out that to be an English aristocrat you usually had to make over $3 mil. a year (adjusted for inflation).  They did not acquire this income through business ventures, mercantilism, wages, or through any great talent on their part really.  It came from speculation, investments (most often chosen by others), and rents from large estates and tracts of land — it came from pre-owned wealth.   The Duke of Marlborough, one of the richest aristocrats of the time, pulled in $52.5 mil annually.  To put that in perspective, Warren Buffet pulled in $62 mil. last year, also from pre-owned wealth (admittedly cleverly invested wealth, likely more cleverly I imagine than the Duke of Marlborough).

But Victorians considered the Duke’s income as real income while we pretend it is not, at least not as real as income made from wages.  Indeed, wages, the money received based on time, skill, expertise, and effort, should be taxed heavily.  That stuff simply should not be incentivized.  Don’t these people know they should already have wealth to invest?  Rather, aristocrats sitting on pots of gold and passing it down to their children…that is the stuff civilizational dreams are made of.

So if you love this American economy
Than vote for Mitt Romney
And I won’t forget the men who died
So I could make money,
And I’ll gladly stand up
For freedom
To speculate at low tax rates
Cause their ain’t no doubt I love this land
God bless the USA

(Based on the chorus of Proud to be An American)

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Adams vs. Jefferson Repeat in 2012

In 1800, John Adams was accused of being an out of touch, arrogant, elitist while his opponent, Jefferson, won with the image of a real American, a man of the people, and a champion of liberty.  For example, in a well-publicized national discussion, when the new republic was trying to decide what to call the president, Jefferson pushed for the title “Mr. President” while John Adams was willing to call him “His Excellency” or something that lent the position more gravitas.  Adams, spending years abroad in England and France, was viewed as having been poisoned by aristocratic and foreign sensibilities and communism was to Joe McCarthy’s USA as monarchy was to Jefferson’s.  As part of the Federalist Party, albeit a reluctant member, Adams wanted to consolidate government power while Jefferson, of the people, by the people, and for the people, had spent his whole life in America and was the people’s man.  He wanted their freedom and saw the small-holding farmer, as opposed to industry, as central to American life.

But biography is ironic.  Jefferson was the son of a rich plantation owner.  At age 21, he inherited 5,000 acres (20 km2) of land, 52 slaves, livestock, his father’s notable library, and a gristmill.  In 1768, he used his slaves to construct a neoclassical mansion known as Monticello.  In 1773, the year after Jefferson married a young widow, her father died. She and Jefferson inherited his estate, including 11,000 acres and 135 slaves.  With these additional slaves, Jefferson became the second largest slaveholder in Albermarle County with one of the biggest estates. The number of slaves from this time forward would fluctuate around 200.

Jefferson enjoyed an enormous income for his entire life, yet was almost always deeply in debt.  He spent lavishly and was constantly remodeling Monticello for no particular or practical purpose.  He spent great sums of money while abroad, especially in France, where he enjoyed the French aristocracy and their way of life.  He loved fine wine, expensive furnishings, and speculation, and died 1-2 million in debt.

Adams, on the other hand, was raised by a farmer who farmed the land himself.  Young Adams loved farming and he ran a farm his entire life, which he worked whenever possible, shoveling manure and plowing fields without the aid of slaves.  (Adams thought the only sensible investment was in land.)  As a boston lawyer, he had trouble making ends meet, and had to farm.  He hated taking cases without merit.  In fact, he took the case defending the British soldiers at the Boston Massacre, the case that launched his public career, in part because he was having trouble finding work.

Throughout his public career, Adams was frugal with his modest income, especially while serving abroad in the company of high socieity, which, unlike Jefferson and Benjamin Franklin, he hated.  He could not stand the theatrics, the sleaziness, the politics, the make-up, the decadence, or the rich food; it disgusted him and he never fit in.  In fact, Franklin had the Continental Congress recall Adams against his will because he was too blunt and impolite; he was a “bull in a china cabinet.”

Nonetheless, for decades, no matter what he did, Adams could not shake the public image of an elitist snob who had been poisoned by foreigners, and Jefferson won the 1800 election.

Barack Obama has also been called an out of touch, arrogant elitist.  I hear it daily.  Indeed, he has given some fodder for this charge.  During his 2008 campaign, he mentioned that rural Americans can “cling to guns or religion or antipathy to people who aren’t like them or anti-immigrant sentiment or anti-trade sentiment as a way to explain their frustrations.”  He called the economy “fine” a few weeks ago.  He spent some parts of his life in foreign countries.  Maybe he is out of touch with real America?

But Obama, we must remember, was raised by a single mom who worked for non-profits.  Mitt Romney’s dad, George Romney, was a successful businessman, a multi-millionaire, Governor of Michigan, Sec. of HUD, and ran for President against Nixon.

Obama finished paying off his school debt in 2004 and, though he is a millionaire now, only became one from book sales after his 2008 campaign picked up.  Romney, on the other hand, is worth over $250 million, making him the richest man ever to run for president — he always has been the 1%.

Obama was a community organizer working closely with underserved populations in Chicago before he became a lawyer, professor, state senator, Senator, and then President.  Mitt Romney worked as a Mormon missionary in France, a high-powered business consultant, a wildly successful venture capitalist executive for 14 years with an initial $37 million, chaired the 2002 Winter Olympics, became governor of Massachusetts from 2003-2007, and has been running for President ever since.

Ultimately, I’m not sure what “out of touch” is supposed to mean.  Everyone is “in touch” with something.  As for me, I like Obama because he, like me, is multi-cultural and has been exposed to poverty.  Like me, he knows what it is like to worry about school debt and making ends meet since the majority of his life he paid close attention to electricity bills, travel expenses, and food prices.  He understands why they are important.  Romney seems like a good guy, but he has been enormously wealthy nearly his entire life.  Romney is Wall Street to Obama’s Main Street.

Did you hear about the $12 million expansion to his Ocean Front property in San Diego?  It includes a car elevator.  But car elevators can be super cool right?  Romney could be just a rich guy having everyman fun, like Obama when he enjoys the perks of bringing the musicians he loves to perform in the White house, or flying up to NYC for a dinner and a show with Michelle.  But surely all excess does not signal everyday humanity.  Maybe some excess is just excessive, such as the time and ink spent on this whole discussion of who is more ‘out of touch.’

So, vote for Obama?  It’s not really my point.  Instead, let’s just all try mightily not be as out of touch as the electorate in 1800.