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oscar111 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 06:20 PM
Original message
rich = hardworkers, or inheritors?
In another forum, i need to buttress the claim that the very rich in usa are mostly inheritors, not worthy bootstrappers { = hard working types}.

Also helpful would be a global view. Is most of the world's wealth in the hands of bootstrappers, or inheritors {such as from the middle ages.. as with England}.

Links good but not necessary.
Thanks!
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fdr_hst_fan Donating Member (853 posts) Send PM | Profile | Ignore Tue Jul-13-04 06:24 PM
Response to Original message
1. Inheritors-no question about it!
:hi:
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cprise Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 06:26 PM
Response to Original message
2. I don't know
But I suspect the 'bootstrappers' are almost entirely from lower-upperclass backgrounds anyway.

That is to say, there is churn among the upperclass... but wealth is mainly inherited.

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stevebreeze Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 06:26 PM
Response to Original message
3. there are all kinds of rich people..they are people after all
some inherit some have worked very hard....
To me the point is capitalism does not distribute wealth based on merit to society, but by power. We need some of the stop-gaps we used to have to more equitably distribute wealth in this country. A far more progressive tax structure, stronger union laws, a higher minimum wage(tied to a realistic poverty level) are all good beginnings.

That we have such a disparity of wealth demonstrates a failing of democracy. This is not just to dollar democracy but to media deregulations such as the removal of the equal time provision.
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stepnw1f Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 06:27 PM
Response to Original message
4. I Would Like To Believe Most Did Not Inherit Wealth...
but earned it. I do not know personaly or otherwise most of the wealthy people around the world, therefore I could only guess.
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donco6 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 06:38 PM
Response to Original message
5. Define "rich."
For a start.
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calico1 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 06:42 PM
Response to Original message
6. There are different kinds.
I have nothing against millionaires, especially if they made their own fortune. I wish I had an idea that could make me a millionaire! LOL. Millionaires aren't all jerks. Think about the ones that give a lot back--like Paul Newman, for example. What I don't like is all the tax loopholes and breaks they get! But I don't begrudge anyone having a lot of money.
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Fovea Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 07:11 PM
Response to Original message
7. You forgot thieving bastards.
I does not matter if they got it from their thieving daddy, or they stole it themselves... listen to the Enron tapes for your true introduction to compassionate conservatism from the wannabe super rich.
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olddem43 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 07:11 PM
Response to Original message
8. I have to believe that most are inheritors -
otherwise, why all the crap about the inheritance tax? BTW, that should stay. It was originally designed to break up large estates so that we don't end up with very few families controlling all the wealth, besides it doesn't kick in until you inherit over a million.
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izzie Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 07:15 PM
Response to Original message
9. I would say about a 1/4 by work rest family.
I think they say that the family money does not last to many generations. That is one reason this country did not keep English law on it. Money handed down in that way did not get out into society.
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oscar111 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-13-04 07:40 PM
Response to Reply #9
10. "define rich".. ..hereby defined
for this, i define it as enough to have controlling ownership in a Fortune 500 company.

As little as 2 percent ownership is enough of a block to control most of the widely held companies.

In dollars, probably ten million.

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skippysmom Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-14-04 11:50 AM
Response to Original message
11. A little of both
Sure, many rich people work hard -- but to get rich, you usually need seed money. And that seed money seems to either be inherited or come from the government.

Off topic a little, but I hate how people keep saying that people who aren't rich just don't work hard enough. I know people who are far from rich but work their asses off.
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oscar111 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-14-04 07:22 PM
Response to Reply #11
12. skippy good point
migrant farm stoop labor is one of the hardest jobs... lower than minimum wage too.

Highest virtue is not working hard, but kindness. Both of value, but kindness is supreme.

Working average effort avoids burnout and errors. Hard labor is not better... it is worse for worker and the quality of goods. We should design jobs for average effort. Kind people should get the best wages, somehow. Agreed?
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pwrwagn Donating Member (4 posts) Send PM | Profile | Ignore Thu Jul-15-04 04:05 AM
Response to Original message
13. The last reliable stats I found
were a number of years ago...

But the last I knew, the vast majority of millionaires were first-generation wealthy. I hate to burst your bubble, but anyone who's trying to say that all "the rich" are just inheritors is pretty much wrong.

In addition to that, most people worth a million or more generally own a business, a farm, a ranch, etc.

I do know there has been a downward trend in this, as things like inheritance taxes and whatnot have ended almost all large family farms, and so on.

In my part of the country, agriculture is mostly the basis for our economy. When I was a kid, there were hundreds of smaller family farms in the area, and the number has fallen by somewhere in the 60 - 90 % range.

NOBODY can now buy a farm a few years into thier life and survive. The business i worked for for 14 years, ending in 2000, is now teetering on insolvency (mostly management issues). But if it were to be sold, it would take a third to one half million dollars to purchase it. What good would it do to buy it, when that much money only buys you one job with above average income, and 4 skilled labor positions? It would be financial suicide.

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shrike Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-15-04 09:47 AM
Response to Reply #13
14. I don't think inheritance taxes have that much to do with the demise
of the family farm. That's just a smokescreen the Washington folks use to pimp the inheritance tax elimination: the poor farmers, let's help them out.

But you're right about the financial impossibility of running a farm -- what with taxes, expenses, weather and other obstacles, most farm families I know have sold out to developers; why not enjoy the last years of their lives?
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seasat Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jul-16-04 01:24 PM
Response to Reply #13
20. I'd have to agree with Shrike
The stats that I saw around the time of the inheritance tax debates showed that family farms were not affected. Family farms are declining because of competition from corporate farms, economies of scale, and severe weather. Interestingly some of the most successful family farms are Mennonites. They are a lot of them around my father-in-law's farm and they run very profitable farms. I think their simple lifestyle combined with their close knit community keep them in business.
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shrike Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-15-04 09:52 AM
Response to Original message
15. Y'all are forgetting one other component here
I have met my share of very wealthy people and many, though not all, are utterly ruthless. Compassion and concern for their fellow men is not a consideration -- the bottom line is.

I knew a man in Rhode Island who'd retired young and a millionaire. He was furious that the state was going to change a longtime law: heretofore, companies were allowed to close their doors overnight, with no warning to employees. People would show up for work and find the place padlocked. The new law changed that, and he was furious: "So what if the place is closed overnight? That's the breaks, that's the way it goes sometimes."

If there are any millionaires on the board I apologize ahead of time for painting you all with such a broad brush.
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seasat Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-15-04 12:28 PM
Response to Original message
16. Interesting read here regarding the Wealthy.
I've glanced through this report and much of the information is anecdotal based on interviews and specific cases of wealth individuals but it has some good points.


It Takes a Village to Make a Millionaire

A new report, "I Didn't Do It Alone: Society's Contribution to Individual Wealth and Success," spotlights successful entrepreneurs and concludes that the myth of self-made success is destructive to the social and economic infrastructure that fosters wealth creation.
...
While these three seem typical examples of self-made success, they're not. None of them believes they did it on their own. Like others profiled in the report, they attribute their success to many factors, among them public schools and colleges, government investment in research and small business assistance, contributions of employees, and strong legal and financial systems.

"How we think about wealth creation is important since policies such as large tax cuts for the wealthy often draw on the myth of the self-made man," says "I Didn't Do It Alone" co-author Chuck Collins. "Taxes are portrayed as onerous, unfair redistribution of privately created wealth — not as reinvestment or giving back to society. Yet, where would many wealthy entrepreneurs be today without taxpayer investment in the Internet, transportation, public education, legal system, the human genome and so on?"
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Nadienne Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-15-04 01:07 PM
Response to Reply #16
17. My employer is moderately wealthy.
He made his money in the disability insurance business. He swears he did it on his own; never mind the customers that paid him, that believed him when he said that it was better for them to give him their money, and they'll tell you how, when, and if you can have some of it (or maybe more of it) back.

Whether or not he earned the money in the first place... Well, when he started out, he had nothing. And going door to door selling disability insurance is no picnic.

But now his income is greatly increased. He spends his time buying cars, motorcylces, airplanes. Even if he did earn it once, he doesn't earn it now. Now, he gets more by "virtue" of having lots. At the same time, he tells his employees that we have to work harder today than we did yesterday in order to earn the same wages today that we did yesterday.

I think he believes that great wealth is the reward of successful risk-taking. After all, he took the risk, and I did not. But if he had taken the risk and failed, how would he feel about starving on the streets? I rather suspect that he would feel society owes him an existence.

:shrug:
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stevebreeze Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-15-04 10:31 PM
Response to Original message
18. great article on exactly this by UFE

"My wealth is not only a product of my own hard work. It also resulted from a strong economy and lots of public investment, both in others and in me. I received a good public school education and used free libraries and museums paid for by others. I went to college under the GI Bill. I went to graduate school to study computers and language on a complete government scholarship... While teaching at Syracuse University for 25 years, my research was supported by numerous government grants... My university research provided the basis for Syracuse Language Systems..."

— Martin Rothenberg, founder of Syracuse Language Systems and Glottal Enterprises

some small examples here of quotes.

"Lots of people who are smart and work hard and play by the rules don't have a fraction of what I have. I realize I don't have my wealth because I'm so brilliant. Luck has a lot to do with it."

— Eric Schmidt, CEO of Google, Inc.



"The opportunities to create wealth are all taking advantage of public goods--like roads, transportation, markets--and public investments... We are all standing on the shoulders of all that came before us, and creating a society for our children and those that come after us. We have obligations as part of that."

— Jim Sherblom, venture capitalist and former chief financial officer of Genzyme




http://www.responsiblewealth.org/press/2004/NotAlone_pr.html
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cedarriver Donating Member (14 posts) Send PM | Profile | Ignore Fri Jul-16-04 10:20 AM
Response to Original message
19. My experience is
such that, I have had the pleasure to know 7 millionairs whose wealth exceded $20 Milliiion. At least 10 between 1 million and 20 million.

80% made their own money. The several that had a good leg up from parents, still worked harder that any person woking a shift at any factory.

Every one of these people worked HARD. 12 to 14 hours a day always 6 days a week and a lot of 14 and 28 day stints. Not because they had to have more money, but because working was what made them the happiest.

Also as a member of several organizations that was always looking for donations I know for a fact, that all of these people donated profusley to good causes and almost to person demanded anonimity. Need a half a million dollars to keep the city pool open? guess how many of these people would discreetly show up with checks for 50 thousand, 100 thousand or more and demand that if their name became public that would be the last donation. An I am pretty sure that most of thease donation were not deducted for tax reasons.

I have never lived amungst 'old money' and that might be different, but that is my experience
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shrike Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jul-16-04 02:09 PM
Response to Reply #19
23. That's terrific
I respect hard work and it's wonderful these people care enough to give back to the community.

Sadly, I've known more than a few rich people who were cheapskates -- not frugal, cheap. My brother-in-law, for example, is worth about $15 million. He would never pick up a restaurant check, ever, and would find other ways to freeload off relatives (he has very few friends) so as not to have to spend his money.

I've also heard of wealthy folks who "purchase" clothing for an event or two, bring it back stained and dirty, and then demand a refund.

The most bizarre case in my memory was the woman I met who lived in a beautiful home in a golf course community, in one of Chicago's wealthier suburbs. She doesn't have to work and her husband is worth a bundle. But she refuses to pay for any plants or gardening supplements. If she needs a new water lily for her pond she goes trespassing on other people's property when no one is home and digs up water lilies for herself. When she needs black dirt she drives out to the country, finds a farm field where she knows she won't be seen and fills her truck with black dirt --never once does she ask permission. She's quite proud of this habit, too.
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cedarriver Donating Member (14 posts) Send PM | Profile | Ignore Fri Jul-16-04 03:37 PM
Response to Reply #23
24. Hey look
there are dirt balls is all areas of society. I'm just saying that almost to a person the wealthiest of people I know would not register on anyones radar as being wealthy. I could relate stories of clergy and social workers that mistreat people, but thats just life
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shrike Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jul-16-04 04:07 PM
Response to Reply #24
25. I'm not dissing what you're saying
I'm just pointing out that your experiences have been different than mine. I wish I HAD had your experiences, frankly. It's depressing when you run into a dirtball of any stripe.
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cedarriver Donating Member (14 posts) Send PM | Profile | Ignore Fri Jul-16-04 04:50 PM
Response to Reply #25
27. Could not agree more
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Nadienne Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jul-16-04 04:49 PM
Response to Reply #19
26. Whereas I don't doubt
the possibility of getting rich by doing what you love and loving what you do, I believe two things:

-the rich don't get rich by accident; getting rich was their intention;

-in the process of getting rich, the rich learned to never give something unless you get something in return. It doesn't necessarily have to be tax breaks or a reputation for charitability. It could be, "You scratch my back, and I'll scratch yours." I mean, sure, my employer is very generous to his fellow business friends, (who in turn give him good deals in terms of pricing) and he gives pretty generously to Jewish organizations. But whenever anyone asks him for money, he always asks, "What's in it for me?"

Granted, he's just one, but I would be surprised if the majority of rich people were like the ones that you know.

Or maybe your relationship with them is on more equal terms than mine with my employer. After all, you allow them to play the part of "generous".
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cedarriver Donating Member (14 posts) Send PM | Profile | Ignore Fri Jul-16-04 04:55 PM
Response to Reply #26
28. 'snide' would be the discription
I see . sorry to burst your bubble, but the wealth give huge sums on money to needy causes.
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Nadienne Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jul-16-04 05:02 PM
Response to Reply #28
29. In terms of the percentage they "earn"
I would guess they give just about as much as me.
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dumpster_baby Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-18-04 05:01 PM
Response to Reply #19
32. I really don't care how hard they work
America is for the people, by the people, and if you are rich, you owe a lot more percentagewise than those that are poor. We should tax progressively: if you make 250K in a year, you should give up 60% to taxes, no loopholes, earned and unearned. Furthermore wealth should be taxed.

It is a question of paying the landlord (the American people) their due.
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seasat Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jul-16-04 01:32 PM
Response to Original message
21. This is just my opinion on the matter, no facts
I think there are three categories of wealthy. The driven entrepenures like thos mentioned in the UFE report who realize that hard work, creativity, fellow workers, community, government and a little luck all contribute to their success. There are the cutthroats like those at Tyco who through postion, ruthlessness, and cheating become wealthy. There are those that inherit wealth. The last stats I heard said that 50% of those that inherited wealth blew it all with little to pass on to their kids. There are exceptions such as those that inherit and pass on a work ethic to their kids. I think that with the changes in the tax structure, weakening of regulation, and elimination of inheritance taxes , we'll see a decline in the first group and expansion of the second two.
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iverglas Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jul-16-04 01:49 PM
Response to Original message
22. just a quick suggestion
Also helpful would be a global view. Is most of the world's wealth in the hands of bootstrappers, or inheritors {such as from the middle ages.. as with England}.

If you're looking for info, it's best not to be starting with silly ethnocentric assumptions. Sorry if that sounds harsh, but it is everlastingly irking to see the misconceptions that so many USAmericans so fondly harbour about the reality of life outside their borders, particularly when those misconceptions amount to the idea that other people are happy peasants living undemocratically and unwealthily under the thumb of illegitimate monarchs and oligarchs.

If you really think that most of the wealth in the UK is in the hands of people who have inherited it, let alone in a line extending to the middle ages, you're really sadly mistaken.

http://www.marketresearch.com/product/display.asp?productid=814488&SID=50473048-294793550-311433494&view=abs&kw=
(requires registration)

This unique report sizes the UK ultra high net worth (UHNW) market (i.e. clients with more than GBP5m {£5 million, just over US$8 million}) and segments it by source and size of wealth (segmented into 9 liquid asset bands). ...

Scope of this Report:
* Analyses the ultra high net worth market in terms of liquid assets, age and source of wealth (split into industries). ...

Report Highlights:
... The average age of UHNWs is between 50 and 60. 70% of ultra-high net worths have earned rather than inherited their money. Property, computers and construction are the most common sources of wealth for UHNW earners. ...

If you have a look at the CIA Factbook site and look up the "GINI index" figures for various countries, you'll find that income disparity (yes, different from wealth disparity, not unrelated) is far greater in the US than in any of its counterparts in the industrialized liberal democracies, and it's growing. That is, the gulf between the rich and poor is greater, and the poor are getting poorer while the rich get richer, in income terms at least. I doubt that the situation would be different in wealth terms.

The US is far more a country divided by economic class than the UK, and I'd be very surprised if you were to find that a smaller percentage of the "UHNWs" in the US had inherited their wealth than in the UK.

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NNadir Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-18-04 02:59 PM
Response to Original message
30. I have known three people in my life who inherited over 100 million
dollars.

All of them were at best marginal human beings with vast insecurities and huge capacity for indifference and self absorption. Two were professionally "functional," though at a low level; one was completely worthless passing from career to career, from failed business to failed business and addiction to addiction.

The idea that people should inherit vast wealth is as absurd as the notion that people should inherit states, as royalty once did.

The unfortunate disabling effect of inheriting power, wealth and connections is graphically displayed by the sociopathic criminal who is occupying the White House of what was once a great democracy. Neither the incompetance or the cruelty of the boy king surprise me. I know this bird and have heard its awful screech before.
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swineguy Donating Member (11 posts) Send PM | Profile | Ignore Tue Jul-20-04 10:48 AM
Response to Reply #30
36. I assume
you appoint yourself as arbitor of worthyness to inheirit?
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Deja Q Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-18-04 04:58 PM
Response to Original message
31. Rich? They make the right moves. Working 'hard' has little to do with it
Look at Bill Gates for one prime example.

They tell us to work hard as a sham. It only makes them richer. And as big business controls government, which in turn gives them perks and looks the other way when they destroy small businesses, they also lie when they speak of helping small businesses.
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oscar111 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-18-04 09:21 PM
Response to Reply #31
33. dumpster-baby:not 60, but 90% was Ike's rate
great post. but think in terms of Ike, whose highest tax rate was ninety percent. Now,tops is thirty five. about a third of what it could be.

Folks, i am not interested in "mere millionaires". I am interested in those who run the mega corporations. Craft-types ... ford, rockefeller, duPont.... founded each one, a century ago. Now kids and kids' kids inherited them. THat is why i am contending the really wealthy are not hardworking. A statistical sample study is all i ask. "The Incredible Rocky" years back said what i repeat about inheritors, and i wonder if anyone else read that?

Also, is it hardwork to tell others what to do, have zero personal financial/jobsecurity worries, and be in total control of vast power? When i have been in total control of my little personal world, it was great fun, exhillarating. Magnates do not work during their 25 hour days, they have a kick! So says Harvard's Galbraith.

Nothing at all like the hardwork of braindulling "remember a thousand details" labor, fearing a boss, and wondering about job loss.

I also have seen studies refuting the giving by the rich.. very low percent rate.
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MichiganVote Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-18-04 09:36 PM
Response to Reply #33
34. What I love
about rich CEO's and the management they hire are the myths they propogate.

Such as, I picked myself up by my bootstraps (mentality) and it was my hard work that made this company, now go work your ass off for me, without a raise or living wage or scant benefits or the company will fold and you with it. Or in modern day terms, we're moving to Mexico.

I don't care that people have more, I care that they don't pay a commensurate rate in income or business taxes. And they don't.

Rich people by themselves have not created this economy. Rich companies have. They run this country and politicians allow them too
They have no loyalty to the US or any other country. They have become machines that feed off the lives of millions and think nothing of whatever they want.

Theodore Roosevelt took them on in the last century. History will repeat itself but not in George Bush.
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oscar111 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-19-04 07:30 PM
Response to Reply #34
35. "incredible Rocky" u read?;Michiganvote, great post
Mich vote, also consider :
those who tell the Newsweek reporter "I work 18 hour days every day, no vacation".. who actually sees them do that.... to verify?

A secretary? who depends on him for her job?

IS not the world of commerce infamous for lies? Can you say "rip-off"?

Claims of initial poverty may also be lies.

===========
Anyone else read the fact-comix, The Incredible Rocky? It said the very rich are now inheirtors. Anyone know his source?
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MichiganVote Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-29-04 06:57 PM
Response to Reply #35
37. They work 18 hours a day?
No shit. Well guess what? That's about 90 hours a week and they are making millions. If you take the same number of hours and apply it to a two income wage earning family, they are nowhere near millions, they are paying out the nose for childcare, they must take care of all of their household chores themselves and they do not receive perks from their companies, such as being able to write off vehicles etc. Plus, as a family unit, also a form of a small business, they are putting in many more hours 90 a week. In the case of the millionaires, they have the option of having one spouse stay at home to "raise" the children. How quaint. The rest of us are raising them in-between breakfast and the lunch out the door.

Now, lets get real. Show me the rich guy or gal who says, "Sorry I can't make the PTA tonight because I have a mountain of laundry to do, or a car's brakes to fix, dinner to shop for or make." Right. The list is endless.

People in communities are now rejecting $50-$100 tax hikes for schools, libraries, roads and other improvements. They say they cannot afford them and I believe them. Does this affect a million dollar worker? Yes. (Thought I'd say no didn't you) But the affects are not commensurate with the priviledges they enjoy in both their social lives and in their taxable income and after tax income.

The rich now view their generous tax entitlements as fait accompli. We have to show them otherwise in November and beyond.
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undergroundpanther Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-31-04 01:40 AM
Response to Reply #37
38. Rich people
May And that is ONLY a may,have worked hard in the early stages of a business. But after they use the grants,gifts,public funds and daddy's help and good buddies,and a dose of right time right place,right'brown nose'to make money they shift the labor burden to others ASAP. Than they pay the workers just enough so they will be reluctant to tell him to fuck off when he squeezes them.Work "sucess" is a Racket..Poverty and homelessness is a big boogeyman that is so profitable for the rich along with the oratio Algier myth to get people to chase carrots they won't likely get and take the lash of less benifiets and pay.If you risk trying to 'suceed 'you may and that's a SLIM may"suceed.There is more to sucess than boostrap pulling it's also knowing people,playing a game,sucking up,doing things that warp your character and integrity to get ahead..To suceed you have to kill a part of your soul.. You have to dehumanize whom you employ,to make them lesser people in your own eyes and turn them into mere numbers to fire them when you feel the slightest pinch into pride and profit.

All corporations and businesses have sociopath values.

by Jerry Mander

The following list is an attempt to articulate the obligatory rules by which corporations operate. Some of the rules overlap, but taken together they help reveal why corporations behave as they do and how they have come to dominate their environment and the human beings within it.

*

The Profit Imperative: Profit is the ultimate measure of all corporate decisions. It takes precedence over community well-being, worker health, public health, peace, environmental preservation or national security. Corporations will even find ways to trade with national "enemies"—Libya, Iran, the former Soviet Union, Cuba—when public policy abhors it. The profit imperative and the growth imperative are the most fundamental corporate drives; together they represent the corporation's instinct to "live."
*

The Growth Imperative: Corporations live or die by whether they can sustain growth. On this depends relationships to investors, to the stock market, to banks and to public perception. The growth imperative also fuels the corporate desire to find and develop scarce resources in obscure parts of the world.

This effect is now clearly visible, as the world's few remaining pristine places are sacrificed to corporate production. The peoples who inhabit these resource-rich regions are similarly pressured to give up their traditional ways and climb on the wheel of production-consumption. Corporate planners consciously attempt to bring "less developed societies into the modem world" to create infrastructures for development, as well as new workers and new consumers. Corporations claim that they do this for altruistic reasons to raise the living standard—but corporations have no altruism.

Theoretically, privately held corporations—those owned by individuals or families—do not have the imperative to expand. In practice, however, their behavior is the same. Such privately held giants as Bechtel Corporation have shown no propensity to moderate growth.
*

Competition and Aggression: Corporations place every person in management in fierce competition with each other. Anyone interested in a corporate career must hone his or her ability to seize the moment. This applies to gaining an edge over another company or over a colleague within the company. As an employee, you are expected to be part of the "team," but you also must be ready to climb over your own colleagues.

Corporate ideology holds that competition improves worker incentive and corporate performances and therefore benefits society. Our society has accepted this premise utterly. Unfortunately, however, it also surfaces in personal relationships. Living by standards of competition and aggression on the job, human beings have few avenues to express softer, more personal feelings. (In politics, non-aggressive behavior is interpreted as weakness.)
*

Amorality: Not being human, corporations do not have morals or altruistic goals. So decisions that maybe antithetical to community goals or environmental health are made without misgivings. In fact, corporate executives praise "non-emotionality" as a basis for "objective" decision-making.

Corporations, however, seek to hide their amorality and attempt to act as if they were altruistic. Lately, there has been a concerted effort by American industry to appear concerned with environmental cleanup, community arts or drug programs. Corporate efforts that seem altruistic are really Public relations ploys or directly self-serving projects.

There has recently been a spurt of corporate advertising about how corporations work to clean the environment. A company that installs offshore oil rigs will run ads about how fish are thriving under the rigs. Logging companies known for their clearcutting practices will run millions of dollars' worth of ads about their "tree farms."

It is a fair rule of thumb that corporations tend to advertise the very qualities they do not have in order to allay negative public perceptions. When corporations say "we care," it is almost always in response to the widespread perception that they do not have feelings or morals.

If the benefits do not accrue, the altruistic pose is dropped. When Exxon realized that its cleanup of Alaskan shores was not easing the public rage about the oil spill, it simply dropped all pretense of altruism and ceased working.
*

Hierarchy: Corporate laws require that corporations be structured into classes of superiors and subordinated within a centralized pyramidal structure: chairman, directors, chief executive officer, vice presidents, division managers and so on. The efficiency of this hierarchical form (which also characterizes the military, the government and most institutions in our society) is rarely questioned.

The effect on society from adopting the hierarchical form is to make it seem natural that we have all been placed within a national pecking order. Some jobs are better than others, some lifestyles are better than others, some neighborhoods, some races, some kinds of knowledge. Men over women. Westerners over non-Westerners. Humans over nature.

That effective, non-hierarchical modes of organization exist on the planet, and have been successful for millennia, is barely known by most Americans.
*

Quantification, Linearity, Segmentation: Corporations require that subjective information be translated into objective form, i.e. numbers. The subjective or spiritual aspects of forests, for example, cannot be translated, and so do not enter corporate equations. Forests are evaluated only as "board feet."

When corporations are asked to clean up their smokestack emissions, they lobby to relax the new standards in order to contain costs. The result is that a predictable number of people are expected to become sick and die.

The operative corporate standard is not "as safe as humanly possible," but rather, "as safe as possible commensurate with maintaining acceptable profit."
*

Dehumanization: In the great majority of corporations, employees are viewed as ciphers, as non-managerial cogs in the wheel, replaceable by others or by machines.

As for management employees, not subject to quite the same indignities, they nonetheless must practice a style of decision making that "does not let feelings get in the way." This applies as much to firing employees as it does to dealing with the consequences of corporate behavior in the environment or the community.
*

Exploitation: All corporate profit is obtained by a simple formula: Profit equals the difference between the amount paid to an employee and the economic value of the employee's output, and/or the difference between the amount paid for raw materials used in production (including costs of processing), and the ultimate sales price of processed raw materials. Karl Marx was right: a worker is not compensated for full value of his or her labor—neither is the raw material supplier. The owners of capital skim off part of the value as profit. Profit is based on underpayment.

Capitalists argue that this is a fair deal, since both workers and the people who mine or farm the resources (usually in Third World environments) get paid. But this arrangement is inherently imbalanced. The owner of the capital—the corporation or the bank always obtains additional benefit. While the worker makes a wage, the owner of capital gets the benefit of the worker's labor, plus the surplus profit the worker produces, which is then reinvested to produce yet more surplus.
*

Ephemerality: Corporations exist beyond time and space: they are legal creations that only exist on paper. They do not die a natural death; they outlive their own creators. They have no commitment to locale, employees or neighbors. Having no morality, no commitment to place and no physical nature (a factory, while being a physical entity, is not the corporation). A corporation can relocate all of its operations at the first sign of inconvenience—demanding employees, high taxes and restrictive environmental laws. The traditional ideal of community engagement is antithetical to corporation behavior.
*

Opposition to Nature: Though individuals who work for corporations may personally love nature, corporations themselves, and corporate societies, are intrinsically committed to intervening in, altering and transforming nature. For corporations engaged in commodity manufacturing, profit comes from transmogrifying raw materials into saleable forms. Metals from the ground are converted into cars.

Trees are converted into boards, houses, furniture and paper products. Oil is converted into energy. In all such energy, a piece of nature is taken from where it belongs and processed into a new form. All manufacturing depends upon intervention and reorganization of nature. After natural resources are used up in one part of the globe, the corporation moves on to another part.

This transformation of nature occurs in all societies where manufacturing takes place. But in capitalist, corporate societies, the process is accelerated because capitalist societies and corporations must grow by extracting resources from nature and reprocessing them at an ever-quickening pace. Meanwhile, the consumption end of the cycle is also accelerated by corporations that have an interest in convincing people that commodities bring material satisfaction. Inner satisfaction, self-sufficiency, contentment in nature or a lack of a desire to acquire wealth are subversive to corporate goals.

Banks finance the conversion of nature insurance companies help reduce the financial risks involved. On a finite planet, the process cannot continue indefinitely.
*

Homogenization: American rhetoric claims that commodity society delivers greater choice and diversity than other societies. "Choice" in this context means product choice in the marketplace: many brands to choose from and diverse features on otherwise identical products. Actually, corporations have a stake in all of us living our lives in a similar manner, achieving our pleasures from things that we buy in a world where each family lives isolated in a single family home and has the same machines as every other family on the block. The "singles" phenomenon has proved even more productive than the nuclear family, since each person duplicates the consumption patterns of every other person.

Lifestyles and economic systems that emphasize sharing commodities and work, that do not encourage commodity accumulation or that celebrate non-material values, are not good for business. People living collectively, sharing such "hard" goods as washing machines, cars and appliances (or worse, getting along without them) are outrageous to corporate commodity society.

Native societies—which celebrate an utterly non-material relationship to life, the planet and the spirit—are regarded as backward, inferior and unenlightened. We are told that they envy the choices we have. To the degree these societies continue to exist, they represent a threat to the homogenization of worldwide markets and culture. Corporate society works hard to retrain such people in attitudes and values appropriate to corporate goals.

In undeveloped parts of the world, satellite communication introduces Western television and advertising, while improvements in the technical infrastructure speed up the pace of development. Most of this activity is funded by the World Bank and the International Monetary Fund, as well as agencies such as the US Agency for International Development, the Inter-American Bank and the Asian-American Bank, all of which serve multinational corporate enterprise.

The ultimate goal of corporate multinationals was expressed in a revealing quote by the president of Nabisco Corporation: "One world of homogeneous consumption. . . looking forward to the day when Arabs and Americans, Latinos and Scandinavians, will be munching Ritz crackers as enthusiastically as they already drink Coke or brush their teeth with Colgate." Page 31

In the book, Trilateralism, editor Holly Sklar wrote: "Corporations not only advertise products, they promote lifestyles rooted in consumption, patterned largely after the United States.... look forward to a post-national age in which social, economic and political values are transformed into universal values... a world economy in which all national economies beat to the rhythm of transnational corporate capitalism.... The Western way is the good way; national culture is inferior."

Form Is Content Corporations are inherently bold, aggressive and competitive. Though they exist in a society that claims to operate by moral principles, they are structurally amoral. It is inevitable that they will dehumanize people who work for them and the overall society as well. They are disloyal to workers, including their own managers. Corporations can be disloyal to the communities they have been part of for many years. Corporations do not care about nations; they live beyond boundaries. They are intrinsically committed to destroying nature. And they have an inexorable, unabatable, voracious need to grow and to expand. In dominating other cultures, in digging up the Earth, corporations blindly follow the codes that have been built into them as if they were genes.

We must abandon the idea that corporations can reform themselves. To ask corporate executives to behave in a morally defensible manner is absurd. Corporations, and the people within them, are following a system of logic that leads inexorably toward dominant behaviors. To ask corporations to behave otherwise is like asking an army to adopt pacifism.

Corporation: n. An ingenious device for obtaining individual profit without individual responsibility.
—Ambrose Bierce, 1842-1914.

Excerpted from: IN THE ABSENCE OF THE SACRED: The Failure of Technology and the Survival of the Indian Nations, Sierra Club Books, 730 Polk St.. San Francisco, CA 94109.


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