Today, three massive systems to redistribute wealth of this nation have been created and implemented in the United States. They have evolved over many years, and are disguised as benevolent, and socially and economically beneficial activities. They are; (1) The Great Society and its so called anti-poverty programs, (2) Social Security and the associated Medicaid and Medicare Entitlement programs, and (3) The ever expanding array of complex and confusing taxes and tax codes (on all levels and of all types) that result in the wealthy retaining far more of their income than those in the middle and lower income categories.
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     Although the elimination of poverty is a truly inspiring and noble concept, it is unfortunately impossible. Poverty is simply the opposite end of wealth, and is therefore a relative concept. Inheritance aside, all of us begin our adult lives in poverty, and strive to accumulate some level of comfort and wealth during our time in this world. Every individual is different, and achieves a different level of wealth or poverty during his or her lifetime.

     The Great Society unfortunately did not recognize this fact, and instead arbitrarily defined a segment of our population as poor. Then, it created an expensive bureaucracy that effectively shifts wealth from the productive to the non-productive. As an afterthought, it enforced non-productivity on the part of its designated poor, thereby precluding any socioeconomic validity.

     Thus, the Great Society programs simply redistribute the fruits of the labors of those who are productive, to it's own bureaucracy and it's defined and designated, nonproductive poor. This diminishes the ability of those who are productive to save or to enhance their own standard of living, and thereby serves to impoverish them. Thus, not only is poverty subsidized and encouraged, it is also promoted and promulgated by the government.
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     Initially, Social Security held some validity as an insurance against the exposure to abject poverty of some segment of older Americans who, for whatever reasons, found themselves destitute and unable to sustain themselves. This honorable purpose has since been distorted beyond recognition into a glorified retirement and health insurance program, promised to every citizen.

     We are now assured that we are, and always will be, entitled to a comfortable living, without being productive in any way, once we have attained a certain age. Those fortunate enough to benefit from this system, now receive not only an income, but also free or subsidized medical and surgical care, and are assured that all of this largess will continue in perpetuity. This, regardless of their levels of contribution to the premiums of this so called insurance, or of the wealth and prosperity they might already possess.

     The insecurity, which has not been disclosed to the people, is that it costs far more to pay for these benefits than has been or is being collected by those taxes (F.I.C.A.) levied for that purpose. Although the government alludes to a social Security Trust, in fact the trust neither contains any tangible assets, nor is it shown as debt! To the best of my ability to discover the truth, the unfunded liabilities of Social Security and the Entitlements Programs now hovers near six trillion dollars.

     This portion of the huge hidden debt, some $6,000,000,000,000, is not included in the admitted Federal Debt of almost five trillion dollars. I understand that many government pension and retirement program trusts are also not funded. Thus, large portions of the fruits of the labor of those who are productive have been, and are even now being, simply redistributed to millions of qualified, non-productive people under the guise of paid and prudently managed trusts.

     For the last generation, the Social Security and Entitlement systems have been funded directly from the fruits of the labor of those of us who have been productive. As we retire and avail ourselves of the benefits of these programs, others will have to pay our benefits, since there is really no money in the trust.

     In only a few years, the ratio between those collecting Social security and Entitlement benefits, and those working to pay for them will shrink drastically. Soon, there will not be enough productive people and production to pay for them, even if 100% of the fruits of their labors are transferred to the entitled!

     How then will these transfers of wealth be imposed, to whom, by whom, and ... from whom?
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     There are many definitions and forms of wealth, but since we are speaking of transfers of wealth by socioeconomic policy and law, we must address wealth from that economic standpoint. For the purposes of this discussion, as well as any legitimate, active economic model, wealth is considered to be fruits of labor, as generated by the production of goods and services in demand in an active economy.

     Money, land, homes, factories and the like are also recognized as wealth, but please recognize that almost all of these were acquired through the fruits of someone's labor. Indeed, other than through inheritance, war, theft or deceit, it is almost impossible for most Americans to ever accumulate any significant amount of capital or real estate, under the present tax laws. None the less, it is the vast majority that must pay most of the taxes now collected in the United States. Experts admit that if all of the earnings of the wealthy were taken in taxes, it would not even pay the interest on the federal debt this year!

     In any modern industrial or technological economic system, wealth is generated through the effective interaction of labor, management and capital. It is important that all three of these elements, in one form or another, are required. We must also recognize that none of the three basic elements can function or survive very long in this age, without the other two.

     Over time, the efficiency, effectiveness and indeed the viability of any economic system depends upon the fair and equitable distribution of the fruits of labor and production, among all individuals in each and all of the three elemental categories. Equity in this case must extend not only to distribution of the fruits of labor, but also the methods and levels at which the individuals in each segment are taxed by the government! Herein a great inequity has been manifested over the past couple of generations in the United States of America.

     It is a fact that most of those in labor, as well as lower and middle management, have at best achieved only modest economic gains over the past two decades. On the other hand, a relative few in upper management and those who own capital have had their social positions and wealth magnified many times over. I cannot believe that this phenomenon has happened without active government intervention in the economy. At best, it is a failure of the government to responsibly and effectively regulate and tax our economy and us.

     Before we blame ourselves entirely for this failure of a democracy, we might take a look at the evolution of our two party system, and the role that money and advertising have played in the recent transformations of those who govern the United States of America. We might also think about whether or not the news media has fulfilled its responsibility to keep the people well informed of the truth, the whole truth and nothing but the truth, about our government and economy.

     It is a fact that the disparity of wealth between labor and capital has grown rapidly during the past two decades, and that 20% of the population now own 85% of all of the wealth in the United States of America*. It is also a fact that those in the lower income categories must use most or all of their income to consume just to survive, whereas the more affluent are not caught in this trap.

     Note well that only a relatively small percentage of our citizenry have significant income above the subsistence level, which they can then save and invest. Thus only they can avoid paying F.I.C.A. and the myriad of sales and consumption taxes, and actually accumulate more wealth. Is this a manifestation of Capitalism?

     In the next few years, the costs of the Social Programs and associated bureaucracies in the United States will approach the total income (fruits of labor) of all of those individuals directly employed in the labor and lower management segments of the economy. We all know that there is a physical limit beyond which an individual can not be taxed, that being the extent of his or her ability to produce and survive. Unlike the situation typical in families of the 1950's, both husbands and wives now must work just to maintain an acceptable standard of living for their families. Will the children soon be put to work, too?

     I cannot foresee the events on that fateful day when the people finally realize that the government, which has taxed them so heavily, cannot fulfill its promises to them. Will the people be angry when they discover that politicians have far different definitions for words like investment, trust and patriotism, than they do? Will they still unselfishly bow their heads to authority, trod off, and work harder to repay the debts for borrowed wealth long since redistributed to others? I cannot answer these questions.

     One result is certain, however, if we allow those who lead the United States of America to continue to deceive us, and impose their false economic philosophies. That once fabulous economy will collapse, and vast quantities of wealth and power, wherever they may lie at that time, will suddenly be redistributed.
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* Source: C-SPAN; 05/05/95; guest U. S. Senator Patty Murray, D-Washington, 111 Russell Bldg., Washington D.C. 20510.; Ms. Murray said, paraphrasing: "...the top 1% hold 40% of this country's wealth ... 80% of the people hold only 15% of the wealth..."
 

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