Tag Archives: Paul Ryan

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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Courageous Ryan Pick Mystifies Me

Does the Ryan pick make Romney a political Jedi Master?

I have combed through dozens of articles, by conservatives and liberals, but I cannot get away from this fact: Ryan was known only for his ‘Ryan Budget.’  Without it he is just 1 of 435 House members.  And I do not know why Romney wants to make the Ryan Plan central to his campaign.  Regardless of whether you like it or not, the Ryan Plan is objectively quite unpopular.

I feel like only a couple of years ago, most everybody, Republican and Democrat, appreciated and respected Ryan, but saw him as politically toxic because of his entitlement reform plans.  In fact, he was never seen as having a chance at President or Vice President, or any greater ambition really.  His was an important voice that deserved applause but not an embrace.  While the Republican party might have changed recently, I do not see his views as any less offensive to moderates and independents.   Romney’s embrace of Ryan also reinforces the narrative that “rich Romney loves tax breaks for the rich” (the Ryan Plan calls for tax cuts for the wealthy paid for by spending cuts in entitlements that come into effect a decade or so later).

This choice also undercuts Romney’s talk about how governorship and business experience (executive experience) is what America needs right now.  As I argue in Boardwalk, Park Place, & Veepstakes, he should have put all his chips into one argument:  America, hire the uber-competent team of Mr. Fix-Its.   There was a degree of magic in a Pawlenty pick.  Though a bit boring, that would have been in fact a strength: it would have made the campaign about Obama’s record instead of an extremely unpopular budget proposal.  (And it looks like the Obama high command was very afraid of a Pawlenty pick too.  But Ryan is great to run against.)  In contrast, Paul Ryan has DC legislative experience only and has “never run anything”–not a business, city, or state–much like criticism someone else received  in 2008 (his name rhymes with Osama).

Maybe Romney picked Ryan to show that he is capable of making tough choices?  This choice certainly makes Romney appear substantive.  Ryan is bold, smart, and offers specific policies, but I’m not sure the substance is something they can win on.  However, this is the one of the best arguments I have read.  Romney needs to look like less of a sleazy hair-do.

Maybe Romney picked Ryan to get Wisconsin?  But Ryan has not campaigned statewide; most Wisconsonians have never heard of him.  And even if picking Ryan does get him Wisconsin, that is only 10 electoral votes.  Florida, with 29 electoral votes, is almost certainly lost because Ryan’s entitlement reforms don’t play well with older populations, and the Ryan pick will drag down the vote in older populations everywhere else in the country.  In contrast, picking Rubio would have helped Romney win Florida (Rubio was a Senator), and help with latino turnout in ever single state with latino populations, including important swing states like Nevada and New Mexico.

Maybe Romney did it to keep the focus on the economy and domestic policy, compared to foreign policy where Obama has a comparative advantage?  But that did not need to be done; the conversation was already going to be about the economy and domestic policy.

Maybe Romney did it because he wanted to leave the party with a legacy of thoughtful articulate conservatism?  He did not want to elevate a Sarah Palin.  Laudable, but I feel that Romney wants to win now.

But Romney is smart and savvy, s0 here I am waiting for the other shoe to drop.  Until then, this VP pick looks like courageous political suicide.  I am kind of impressed actually.

Romney, we hardly knew you.