What happens when those who have forget how to let go?
I have a lot of friend who wish they were financially wealthy. And I can’t tell you how many times I’ve heard, “If I were rich, I would give it all away.” It’s a nice sentiment, but one I sometimes strain to believe. And here’s why.
The above chart comes from Jon Perr and it illustrates something quite interesting. (ht) I’ve been thinking a lot lately about some of the significant differences my grandparent’s generation decided to make about social investment, especially the financially wealthy, as opposed to my generation.
If you look at the two times the United States has been in a true depression, now and 1927, both are when the highest tax brackets have been contributing a substantially lower amount of taxes. In 1927, the top tax bracket was 24%. Last year it was 35%. I just thought that was too convenient for words. 1980 could be considered a recession (and I’m even willing to admit it was a depression) but it was significantly influenced by bad fiscal management and Iran.
The most significant periods of rebuilding occurred when those who had, let go for the sake of investing in the other. Taxes aren’t fun, but as much as we don’t like them, they act as a social pool towards redevelopment, and management of the social infrastructure.
I also completely understand the desire to keep one’s money. It doesn’t seem fair that the top 5% pay 50% of all taxes. But if you flip this idea on its head, the one’s at the top are the only one’s capable of solving the problem. If 5% pay that much, that means they are the ones controlling the assets. They hold the responsibility.
But what if the very act of holding onto that money, will be the downfall of that same economy?
I say all of this because we live in the shadow of our grandparents investment. We live in a nation that has thrived because of that investment. And if we think it will continue to grow without that same investment, I think we’re kidding ourselves. What if the very responsibility of money is to let it go, to be the one’s to manage it well by investing in the other. So the act of letting go becomes the very act that gives people what they want.
FYI: I’m not an economist but I play one on TV. ;-P I’m not saying anything you probably don’t already know but the chart seemed to solidify it for me.
