Thursday, July 15, 2010

SOME GOT IT, SOME DON'T, BUT WHY?

The easiest-to-learn but hardest-to-live-with law of life is simply this: There are the Haves & the Have-Nots. The immediately corollary to this law is: There are more Have-Nots, Always have been. Always will be....!

Sociologists and revolutionaries can argue late into the night over why this eternal law is so eternal. Some take the Nature position -- a few are born to privilege. Others take the Nurture position or -- the survival of the fittest. Whatever your theory, the facts blaze across the pages of history. For every pharaoh, caliph, emperor or aristocrat, there are millions of slaves, followers. servants or serfs.

Consider our own current comparisons between today's Great Recession and yesterday's Great Depression. In 1928, the richest 1% of Americans got 24% of the nation's total income. With FDR's New Deal and subsequent reforms, our richest 1% were getting only 9% by 1970.

But what makes this law so seemingly eternal can be seen by the fact that by 2008 we were right back to where we were in 1928. Our richest 1% were again taking in 24% of the nation's total income. Economist Robert Reich draws a troubling conclusion: "Each of America's biggest economic crashes occurred the year immediately following these twin peaks -- 1929 and then again 2009. This is no mere coincidence. When most of the gains from economic growth go only to a small sliver of the population at the top, the rest simply don't have enough purchasing power to buy what the economy is producing, and therefore to keep that economy growing."

OK, so here are some statistical facts as presented by one celebrated economist. Other equally celebrated economists draw different conclusions. And thus another corollary to the Have/Have-Not law of life persists: Once you have all the facts, you may have only part of the truth. [AKA, your facts may not be my truth].

If so, than it's pretty clear why sociologists and revolutionaries sit up so late at night arguing. However, I can recall to this day the illuminating conclusion one of those late-nighters finally agreed upon: "The rich get richer and the poor get children!" Now there's a fact that's also the truth....



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