Hating the Rich

"Tax cuts for the rich", "Those greedy rich folks", "The rich don't pay their fare share". These are among the many mantras that are tirelessly distributed for mass consumption. Designed to foment class envy and conflict, such rhetoric serves only the advancement of the author's agenda, while leaving a trail of insidious policies to redistribute the wealth of the citizenry. Such beliefs lie at the foundation of communist and socialist philosophies, and have significantly contributed to the success of the Democratic Party, due in part to the size of the voting American proletariat, or working class, in relationship to the other socio-economic classes.

Nevertheless, the wealthy are a group that many (who are not wealthy) love to hate. Some of this hatred stems from the perception that most wealthy people inherited their fortune. Politicians, many of whom are among the affluent, often propagate this perception in order to achieve electoral success from the large non-wealthy voting population. However, the reality is that most of America's wealthy, as the old Smith Barney commercial used to say, "make money the old fashioned way, they earn it." In fact, in 1997, only 28% of those listed on the Forbes 400 wealthiest Americans list became so through inheritance, confirming the notion that you don't have to be born into the 'right family' to be affluent.

America's affluent population does not require our adoration or any surreal aura cast upon them. However, as an American, we should be grateful to be a part of a nation that continually produces more wealthy individuals than any other nation on earth. Our economic success is predicated in large part on the mobility of our society, which offers a plethora of opportunities to move up (and down) the socio-economic ladder without having the benefit of a wealthy lineage. The demands of the middle-class and the wealthy drive much of the economic activity in America, and often dictate the course of innovation. According to the great Austrian economist Ludwig von Mises, innovation "is the whim of an elite before it becomes a need of the public. The luxury today is the necessity of tomorrow." The affirmation of this is evidenced by the ubiquity of mobile phones, DVD players, and countless other innovations that were once within the reach of only the more affluent consumer.

The more affluent among us create thousands of employment opportunities through the creation of, and investment in small businesses. If not for wealthy venture capitalists and angel investors, many fledgling businesses would lack the capital necessary to exist, much less undergo the research and development of products and services to meet today's supply and demand. In the United States, small businesses represent more than 99 percent of all employers, and employ over 50 percent of the private labor force.

Additionally, scores of charities, schools, hospitals, foundations, et al, are the recipients of the largesse of wealthy citizens. According to "The 2002 Slate 60," the annual list of charitable gifts and pledges from the country's top philanthropists, the amount of charitable contributions totaled $4.6 billion in 2002, the figure topped $12 billion. Through this generosity, the wealthy and others among us have for years assisted in saving the lives of millions of Americans suffering from critical health disorders, provided educational opportunities for countless children, funded efforts in the arts and sciences, and supplied billions of investment dollars to fuel the American economy.

In short, we should be cautious with our criticism of the wealthy, as with anyone else. Of course, there are those whose avarice overshadows their financial contributions to society, often leading to fraud and corruption. However, such cases are not representative of an expanding group of financially successful citizens whose hard work and perseverance immeasurably contributes to our nation's prosperity.

Sean Turner is a member of the Project 21 Advisory Council of the National Center for Public Policy Research, a regular columnist for RenewAmerica.us, GOPUSA.com, and a contributor to a number of news and political websites. Readers can email him at [email protected].