Rich, do not be afraid of "spreading the wealth"

After the presidential debate yesterday night, Google's search engine was clogged with requests for information about "Joe the plumber." In the "Washington Monthly" blog, I found an interesting post which was writen by Hilzoy, a philosophy professor.

Spread The Wealth

I agree with her and here are my additional support evidences:
We've witnessed the largest transfer of wealth in the history of the USA. When George Bush came into office, the richest 1% of Americans made 17% of the total income in the US. The richest 1% now makes close to 25% of the income in the US.

When Republicans call the progressive taxes as socialist expropriation, they should study the history. 1929, 1987 & 2008 have been the worst economic times in history. What they all have in common is republican administrations and the “free market” policy which favors the ultra wealthy and corporations.

One of the goals of a progressive tax system is to slow down the concentration of wealth into fewer and fewer hands. GOP fantasies notwithstanding, consumer economies cease to function when one guy owns everything and everyone else has nothing. It's no big secret that the worst economic crises - like the one we're seeing now - happen when concentration of wealth becomes so lopsided that a significant percentage of the population is only minimally participating in the economy. Consumer economies don't work when half or more of the people involved have no discretionary spending power. However, with Obama's tax policy, lots of people will have more money to spend & they may spend it such as at Joe's Plumbing Emporium & Fantasyland. It's a virtuous cycle. As we've seen, Bush’s taxes cut may bring in more profit in the short-term, but in the long-term it can literally kill the company if no one can afford without taking on huge amounts of debt.

Moreover, taxes are the price we pay to live in a civilized society. This is what pays for the roads, hospitals, schools, firefighters, police, etc. Some people complain that taxes in the San Francisco Bay area are high yet somehow lots of people still live there and others are trying to get in. It is partly because of the investment in taxes in roads, clean air and water, universities, museums, and on and on that it is a desirable place to live. Wealthy people benefit much more from civil society than poor people do and so it is reasonable that they be taxed somewhat higher. Actually, progressive taxes are relatively cheap insurances that the rich can pay to keep from bankruptcy or even suicide when the Revolution comes.

It's time to spread the wealth around.