America Is Suffering: Is It Due To Lack Of Money?

Progressives assert that while the rest of America lags, the wealthiest 1% of earners continue to absorb an increasing amount of the country’s income. However, that liberal fallacy is being shown to be false. According to a recent study, the after-tax income share held by the top 1% of earnings is unchanged from 1960 to the present.

America Is Suffering: Is It Due To Lack Of Money?

This debunks left-wing misconceptions about income, such as those made popular by Emmanuel Saez and Thomas Piketty, who stated that the wealthiest 1% of Americans earned 27% of the country’s income by 2021 after earning 8% in the 1980s.

However, the technique used to calculate the top 1%’s part was incredibly defective and included severe mistakes such as adding non-top 1% earners to the group’s total income. As a result, the top 1%’s portion was tripled. This analysis is based on research conducted by Gerald Auten of the Treasury Department and David Splinter of the Joint Committee on Taxation of Congress, which was published on September 29, 2023.

Based on a precise and truthful estimate, the after-tax income of the top 1% of earners in the country is approximately 8%, essentially unchanged from 1960. Actually, during the six decades that have passed between then and now, that figure has remained flat.

This goes directly against the communist talking point that the “greedy 1%” have been enslaving the masses in a cycle of extreme poverty for fifty years. Numerous social evils have not been brought about by fewer people accumulating greater money. It isn’t because they are famished and in need of a loaf of bread that people are robbing Foot Locker.

These kinds of ransacking incidents, particularly involving expensive products, demonstrate how social issues rather than economic ones are the main causes of problems in American society.

There is, in fact, some interaction between those two groups. The welfare state established by President Lyndon Johnson offered financial incentives for unmarried births, which decreased marriage rates and income mobility among lower-class populations. All the social problems associated with fatherless households skyrocketed in the wake of these terrible incentives.

On the other hand, those same social evils momentarily decreased in frequency after President Bill Clinton approved welfare reform and eliminated some of those harmful incentives.

Despite this, we must admit the degree to which moral deterioration has either directly caused or contributed to the many problems that exist in American society. The theft of small goods is common in our cities. With homicide rates comparable to those in active conflict zones, many urban neighbourhoods have turned into death traps. The frequency of violent carjackings is rising. Even the elderly are vulnerable to assault.

No way taxing the wealthy or changing government expenditures can fix these issues. Instead, these kinds of atrocities are signs of the moral decay in America. President John Adams noted, “Our constitution was made only for a moral and religious people.” “It is wholly inadequate to the government of any other.” How accurate he was.

This demonstrates the significance of accurate results from economic research. We wind up chasing ghosts when we place the blame on a boogeyman, such as the top 1% consuming all of the country’s income. How can we possibly hope to remedy an issue if we can’t accurately locate its source?

Additionally, research can indicate what is or is not working to address an issue in addition to indicating what is or is not likely to be the cause of the issue. For instance, this most recent analysis on the percentage of money held by the wealthiest 1% shows how social problems have gotten worse while the tax policy has been considerably more progressive.

The percentage of before-tax income held by the top 1% has increased, but not that of after-tax income. It’s obvious that “soaking the rich” hasn’t improved the lot of the impoverished or lowered the number of unwed births.

America would do well to keep in mind that while the study of economics can be used to pinpoint social issues and their root causes, it is not a panacea. That will require a moral upsurge in this nation.

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