FRACTURERD SOCIETY

It is with a great deal of restraint that I have resisted commenting on Friday's "Union" rally in Trenton. That along with a commentary on the Legislator's walkout in Wisconsin and Indiana will be subject matter as time permits this coming week.


First I would present some background on today's economic stratified society. This is pertinent to  not only the above,but our future.

Politics and passions run high regarding the relationships of governmental employees with their contracts. Today's poor economics with a still 9% unemployment rate has fueled the conflict. 

We now have a five level society; the so called "Millionaires", Government Employees, The non civil wage earners, the Elderly and the Unemployed. Each grouping naturally can be further broken down into sub groups.  Each and every sub group should require different taxation, fiscal security and health benefits from the other members in the grouping.

(1)The Politicians’ object of rhetoric abuse; “the Millionaires” requires further sub-division separating obscenely rich Multi-Millionaires/Billionaires from the "Accidental Millionaires” as well as the Run of the Mill Millionaires”

The first group earned their wealth mainly through repugnantly inflated job compensation" from salaries, bonuses and/or securities grants especially options.  This is the group that should be the focal point for legislation eliminating the large loopholes which creates income free of taxation. This is the group that should be responsible for at least 2/3rd of the revenues needed.

Health care and “retirement planning” are not issues for this group. They will not be participants in any health care program.
There is a significantly smaller group whose income has reached the 6 figures as executive or self employment. This group includes moat professionals .Their taxations must be adjusted in order to prevent abuses that may still live in the System. They have over the years accumulated enough resources to be labeled “millionaires”.  This is the bunch I call the “Run of the Mill” millionaires.

All will have some type of heath care insurance, where provided by their employer they will also have a maximum retirement plan including 410K and maximized IRAs. Any income tax should have step increments but the percentage must be capped
  
The group that I refer to as "The Accidental Millionaires" have become so through fiscal conservatism and savings. Most of their inclusion in this group has occurred due to combating inflation by investing in securities that’s increased in  value as the market have risen.  Values have mirrored the inflationary rate. A decade or two ago they would have been considered the well off upper middle class and their total wealth would not place them in the Millionaire group. Their dollar buying power then and now would reflect the true value of their economic status.

Those that have reached retirement age are now living off Social Security, and dividends or interests returns from investments. The ones over 70 have to liquidate based on life expectancy programs, mandated dollars from their various retirement programs. These dollars plus the capital gains from sales of securities places many in a higher income tax level. Thus they are penalized for saving and preparing for their old age.
 
(2)The "Unemployed" has changed only in their presently increased numbers. This classification includes those who for physical, or educational, and unfortunately ethnically and/or religious reasons find themselves unemployable. 

It also includes the employable that have lost jobs due to various factors and are now rejected when work is available because of age or wage expectancy. Plant layoffs where there are existing unions contracts protect longevity therefore the 20-30 year olds, many with young families to raise, are hit the hardest when layoffs under union or civil service rules are in force.

This is the group that needs active society help financially and in health care as well as retraining. There is a small minority that will accept a dole rather than try to earn their sustenance. 

During the Great Depression the CCC, PWA, and WPA programs were paramount in helping the unemployed regain a sense  of self pride while at the same time improving the nation’s infrastructure. This Administration’s policy of Grants has less successful, increased the debt and unfortunately been open to abuse of funds.

The provision of health care to the unemployed or those whose income is below the poverty level is a must but it should be in a manner that will not lower or otherwise compromise the health care delivered to the rest of the population.
  
(To be continued)