Senator Paul Ryan has decided to argue against Elizabeth Warren.
In response to this report:
In its report, the budget office found that from 1979 to 2007, average inflation-adjusted after-tax income grew by 275 percent for the 1 percent of the population with the highest income. For others in the top 20 percent of the population, average real after-tax household income grew by 65 percent.
By contrast, the budget office said, for the poorest fifth of the population, average real after-tax household income rose 18 percent.
And for the three-fifths of people in the middle of the income scale, the growth in such household income was just under 40 percent.
which meant that the top 1% of earners doubled their share of the nation’s income (they now control 17% and remember that the rich usually control a much higher share of total wealth than total income)
Ryan pushes back:
Let’s not focus on redistribution, let’s focus on upward mobility,” he said. “If these studies are used as justification for erecting new and more barriers for making it harder for people to rise, all that will do is reduce our prosperity in this country.
If you look at the change in the share of income of the top 1%, though, you see that their share was at the lowest levels from about 1953 until 1983 (it looks like it started going up in 1980 or so). Last I checked, that included the times when income rose faster for everyone and there was more mobility:
The U.S. economy grew by an average of 3.8% from 1946 to 1973, while real median household income surged 55% (or 1.6% a year). The economy since 1973, however, has been characterized by both slower growth (averaging 2.7%), and nearly stagnant living standards, with household incomes increasing by 10%, or only 0.3% annually.
So, the change in the government starting with Reagan has erected new barriers for people to rise–stating that, of course, is class warfare whereas when Ryan says something meant to allow the rich to keep more money it’s not.
Therefore, when Ryan argues against this statement by Warren:
“You built a factory out there? Good for you,” she says. “But I want to be clear: you moved your goods to market on the roads the rest of us paid for; you hired workers the rest of us paid to educate; you were safe in your factory because of police forces and fire forces that the rest of us paid for. You didn’t have to worry that marauding bands would come and seize everything at your factory, and hire someone to protect against this, because of the work the rest of us did.”
She continues: “Now look, you built a factory and it turned into something terrific, or a great idea? God bless. Keep a big hunk of it. But part of the underlying social contract is you take a hunk of that and pay forward for the next kid who comes along.”
with:
Ryan dismissed it as the “fatal conceit of liberalism.”
“Money and wealth made and created in America is the government’s unless they benevolently spend it back to people. It’s the other way around,” Ryan said. “No one is suggesting that we don’t need good schools and roads and infrastructure as a basis for a free society and a free enterprise system. But the notion that the nucleus of society is the government and not the individual, the family, the entrepreneur, is to me just completely, inherently backwards.”
he is not only trolling (ignoring her argument and then arguing against what he pretends she said), but he is wrong even if we pretend he’s making a serious counter-argument. Her point is that historically the US economy does better when the government spreads money around, even the rich do better, and those that benefit from the structure of our economy should be willing to give back more (for example, the presence of copyrights has made some people extremely wealthy, so shouldn’t those people give back a lot of it in taxes?) . In other words, basically the government is redistributing money that the rich owe society for all that was given to them–the nucleus of society is all of us, not just the rich (also, does he really believe that no one is suggesting we don’t need to spend to have a good infrastructure?–he must not listen to himself).
Update: TPM links to a report (the report is embedded at TPM) which shows that there is more economic mobility in many countries than in the US, for example those socialist hell-holes Sweden, Canada, Finland, Norway, and Denmark.
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