Why we need the rich: A message to Americans – and our leaders in Washington DC – on wealth creation by a wealth creator.

[Valin]

Blackhawk Blog:

Ziad K. Abdelnour, President & CEO Blackhawk Partners, Inc.

It has an often repeated axiom that a person can learn a whole lot about a society by how it treats its poor. But just as much can be learned by looking at how that society treats its rich. Indeed, the economic future of the poor – and our nation – will be determined in the coming decades by how we treat the people in this country who create great wealth. It will be determined by our understanding of the so-called rich. And our ability to protect this minority.

It is an unpopular thing to say, I know. Rich people need help? Rich people need to be protected? Rich people a minority? Give me a break. They just seem to keep getting richer! Regrettably, too many Americans, and far too many intellectuals and politicians, don’t understand these people we call “the rich.” And how it is they got rich in the first place.

Because most of us don’t actually know any of these rich people, we instead experience them in the abstract, through policy debates and statistics, and always through the prism of our own ideological lens. We look at the raw data to state our case either against or for the richest among us. In the end, our view of the rich has much to do about how all of us view "capitalism" itself. Indeed, in that respect, our opinions about the rich are a sort of Rorsach test, revealing more about ourselves than anything else.

To those on The Left who think capitalism creates unfair outcomes, they have statistics to confirm their outlook. It seems absurd on its face that the top 1% of American families own 90% of the nation's wealth.

Wouldn't it be possible to contrive an economy that is just as prosperous but with a fairer distribution of wealth? Couldn’t we cap the earnings of the rich at $50 million? Or even $100 million?

Most defenders of capitalism and free markets say no. They contend that the bizarre inequalities we see are an indispensable part of the processes that create wealth. They imply capitalism doesn't make sense, morally or rationally, but it makes wealth. So don't knock it.

What nonsense it all is! And how little to do with the reality of the rich. And how sad that defenders of the rich – or the rich themselves - can’t come up with a better economic or moral case! Quoting Adam Smith and supply side economists just doesn’t cut it.

So who are the so called rich? As someone who is rich (and would love to be even richer), and has spent a lifetime working with people who create wealth, I thought I’d explain who they are, where they come from, and why we should care about their wealth – and their desire to hold on to it.......(Snip)

[nickydog]

This is good, Valin. We need more people like this guy speaking up.

[Rheo]

Excellent article!