The war on capital.

 HAVING MORE THAN BASIC NECESSITIES IS NOW CONSIDERED IMMORAL

THESE ANTI-CAPITAL IDEAS ARE ALL ROOTED IN MARXIST IDEOLOGY

We are in the process of labeling any accumulation of wealth as an evil and an exploitation of those who have no net worth. Sadly more and more Americans have little or no net worth. Net worth is of course the difference between their assets and their liabilities or debt. Much of this behaviour has been encouraged by recent government decisions. Saving is discouraged, spending and accumulating debt is encouraged.

Historically we have been encouraged in saving a certain amount of our earnings and accumulating money or capital to take care of unexpected emergencies, save to purchase a home or other assets. And God willing, give our children an opportunity for education, maybe help start a business or leave them with an inheritance which has allowed families to grow, and prosper over generations. Capital assets are a great source of stability in ones life. Being without any assets is a very tenuous and insecure situation that can go from bad to worse.  Most people at one time or another have been in that situation. It has historically been accepted that you work and save to avoid getting in that predicament. 

It seems now the new ideology is that we should all rely on the government to supply our basic necessities and accumulating wealth is a symptom of greed, privilege or some other negative term. The government will provide food, housing, education and medical care and we will accomplish this by supplying the resources from our earnings. We no longer need to save and pass on wealth to future generations as the government will take over that role. This pretty much is the basis of socialism. They in effect destroy the need to be responsible and be self reliant.

Every government policy discourages saving. Interest on saved money is now almost non existent. Most elderly depended on savings interest to supplement their retirement. The government has in effect taken over more and more lending with money created with a data entry. Money is continually being devalued by deficit spending making it a losing proposition to save money. Government would be in a very difficult situation if they would have to pay historically normal interest rates on government debt.

As government spending increases they now are going after saved assets, increasing taxes on dividends which are mostly under 3% to begin with.  Again, with the devaluing of the currency it may be losing proposition to buy stocks for dividends. The stock market is booming because there is no alternative to put money to work. Increased taxes on dividends and capital gains may just take away the last investing opportunity. The new ideologs will be happy, because it is in their opinion, immoral to earn money without labor. They also believe it is immoral to pass on wealth to your descendents.

So, while they claim they will only be taxing the rich, these policies will affect every working person in the country. Their savings and pension plans will all be at risk. This will of course be an opportunity for government to save them from financial ruin with more deficit financed government programs.

One thing to remember, the rich did not get that way by being dumb, they have navigated government regulation and adapted. If investing becomes too risky, many can just quit and live off what they have, this will take money out of the system and create less government revenue. Of course, the next step by government will be annual asset taxes, this will be followed by a flight from paper assets to hard assets, one can put in the basement. This is when it it all implodes and everyone will be entering a period of decline and survival.

Originally published 5/5/21

We now hear the Democrats are indeed hoping to tax assets, unrealized capital gains, making inheritance taxes to be paid on capital gains from when acquired. This is actually just confiscation of wealth, which they don't believe anyone should be able to acquire. While they claim it is only on the very rich, these ideas always soon pertain to everyone. 

Everyone who has saved and been responsible hope to pass on what they no longer need to their families. This is a no no in Marxist theology.  People worked and paid taxes on the money used to acquire these assets, did they really grow in value, or have they just increased in dollars due to government induced inflation. Now they want you to pay tax on the increased dollar price.

If someone bought a stock when they worked at a company for $30 a share in 1970 and now it is $130 has it grown in real dollar buying power, not likely, but now they want to tax $100 of this asset, before your heirs can have access to this. All in an effort to discourage saving, investment and personal responsibility and to encourage being dependent on the state. This just more vote buying and increasing the power of the government over the power of people. Beware, it will end in chaos and poverty for everyone, except the politically connected.

10/25/21

Today, taxing wealth and assets is now back, after traveling to Europe and handing out money as if it was candy, someone has to come up with money. Of course, the so called rich is an easy target. Problem is, we will all soon be the rich.