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Thursday, March 20, 2014

The Donut Hoarder Admiration Society

We were having a discussion with some respected peers about this culture of wealth admiration we're all a part of.  Granted it is not a modern phenomenon, not by any stretch..

But beyond the fact its indoctrinated into every one of us via the educational system to respect, idolize and seek out to be like the very rich or at least to impress and them in their company. where does this mindset come from?

Many ideas were passed around..

A historical theory was posed..  So many centuries where people lived in a feudal society where Knights, Kings and other titles of nobility were so far above the peon peasants, that even today in a free society, we're conditioned to emotionally "bow" and "curtsey"

It made much sense as did the sociological theory that we don't necessarily admire the individual as much as his or her success and we want to know to be like them.  And one draws more conversation out with honey praise than vinegar scorn..

Then the most learned of us at the table put it the most succinct:

We don't hate the rich (though we should) because we believe their massive wealth acquisition occurred in a world disconnected from ourselves.

We also believe our financial struggles and can't figure out our limited access to the small slices of the money 'pie' is a lot to do with the super-large slices they cut for themselves first

We'll give you some examples of what we mean..
You sit and watch an NBA game on TV and you see some superstar athlete hog the ball by scoring 60 points off 40 shots and depending on whether that athlete is on the team you're cheering for, you're happy or miffed but begrudgingly admiring..

Now imagine you're in your younger days and you're playing with friends at the local court and some guy or girl keeps making shot after shot, rarely passing or involving the others including you...

You'd be pretty pissed yes?  You should be..
But what's the difference..

The neighborhood kid is directly depriving you of participation in the game diminishing your fun and taking away any chance you may have at success or glory among your peers..

The guy on TV?   Ehh.. what is it to you?  You're home relaxing in your recliner sipping on a soda or what not..


Another example..
At your place of work, your boss is nice enough to provide fresh donuts every morning in the break room for his employees to enjoy.

And yet, every morning you enter the office, go the the break room to find all the donuts gone while a selfish slovenly pig co-worker is sitting with icing all over his lips.

Peeved, you ask bluntly "What the Hell?!!" to which he replies "Shove Off!  I got here first and there's no rule that says there's a limit per person.. If you want some, work harder to get here earlier!"

Pretty aggravating yes?
And yet..

For so many people there is this sick sycophantic admiration toward the super wealthy; the very few who hoard all the wealth in this nation (and globally)  the reply would be something like "Shove off!  There is no limit to how much I am allowed to make and if you want what I have, work harder, etc..."

To which most would nod their heads and grumble,  "Hmm, he/she has a point"

Of course he/she doesn't..   But as we said earlier on, we're behavior conditioned from our childhood education to admire and seek to be like the select few super-wealthy..  That's how capitalism functions best..
Every mouse run, running, Running on those wheels and on occasion one mouse is actually allowed to acquire large amounts of cheese pieces so the tens of millions of other mice aren't discouraged.

So how are we affected adversely when individuals we've never even met in person and seemingly have no part in our daily lives, possess hundreds of millions of dollars or worse, billions while most adults don't even have $3,000 in their checking accounts for emergencies?

For one thing it is near impossible to open up and run a successful local based bricks and mortar based business without heavy competition from corporations who have the resources to crush any upstart..

And all corporations, even publicly traded ones have individual owners who ultimately generate outrageous profit and through their bevy of accountants pay pennies on the dollar in personal and corporate taxes

They don't mind making 8 figures a year.. They just don't want to see you making $8/hr if they can get away with paying you $7.25

Try opening a hardware store in your hometown anywhere within a 20mi radius of a corporate chain..  Or a pharmacy..  Or a supermarket..  Or even donuts..

Good Luck if you last 12 months before your creditors start kicking down your doors wanting to be re-paid which is followed by closure and bankruptcy..

And a restaurant..  half of them go belly up within 6 mths..

And so if you can not achieve your dreams and create financial security for yourself as an independent businessperson, the only other option is to work for the donut-hoarders, using your MBA and other fancy degrees to help wealthy pigs acquire even more wealth in exchange for a nominal hourly or salaried rate.
Also having so much money in the hands of so few is destructive to local economies and the ability to collect tax revenue...

We've done this example before and will do so now..

Mr Big Wad's net worth is $1 billion..  How many automobiles will he purchase in a calendar year?

Unless Mr Big Wad is also Mr Generous, its fair to say if he was in the market for a new car and not for collecting purposes, he'd probably purchase at most 2 cars because no individual, even a super rich one buys 3 new non-collectible autos just to buy for boredom sake in a 12 mth window..

So lets say each car was top of the line luxury i.e. $175k each.
For two new cars, that equals a $350k purchase and if sales tax was 6%, the state government was able to collect $21k.

OK, now lets say Mr Big Wad only had a net worth of $200 million and the other $800 million was circulated among the local economy so that 10,667 people could each afford a $75k car

Even if only 1% of that total bought new vehicles, that would mean 106 vehicles sold among local dealers vs 2 from Mr Big Wad and the state would collect $477k in sales tax revenue off the purchases.

The more money which is hoarded by a select few, the less it is in circulation for the masses to benefit and thus affects everyone big and small.
We'll bring it back to the donuts in the break room to tie loose ends..

Every day the business owner buys from 'Doogie's Donuts'..  He's a local businessperson, not a chain..

Now if one corpulent pig is shoving the donuts down his gullet while depriving most other co-workers, how are they going to know if they like the donuts enough to actually purchase on their own??

The gluttonous pig is indirectly sabotaging a local business' ability survive i.e. getting their product out to others.  because Doogie's Donuts needs more customers than that one boss buying for his employees to stay afloat
There's an old adage we've expressed before though we in no means can take credit:

Give a person a fish and feed for a day;  Teach that person to fish and feed for a lifetime..

Problem for modern society is what to so when one person actively seeks to own all the fish and another all the water...

And both admired by the masses for it?