There is typically much ballyhoo (I love that word) when people complain about all the money that rich people make, and how unjust it is that they get tax breaks (which is patently false, they pay the majority of taxes), etc, etc. But not much is said when the same rich people lose a ton of money. Where are the complainers? The same system that rewards certain players, can also take away. But no one ever talks about that much because therein lies the clear proof of the risk/reward and self-regulating nature of capitalism that makes it a much more just system than others.
The October 25th-31st issue of The Economist highlights 91-year-old billionaire, Kirk Kerkorian. It appears that the value of his stake in MGM Mirage fell from $14 billion to $2 billion (wow), and his 6.4% ownership in Ford is losing him $700 million. That’s a lot of cheddar. A lot.
With capitalism the risk-taker gets the reward, but don’t forget… they also many times just get the risk. Is that not just?
MARK ADDS: Warren Buffett, the ‘Sage of Omaha’, too.
Mark
Sgt. Grumbles
Elijah
Pete
If you take a dump in the forest and there’s no one around. Does it actually make a “plop” sound?
The wealthy do in fact receive tax breaks, and because of their excessive wealth (the top 5%), the remaining taxes that they must pay are in fact the majority of our national income tax paid. But income tax is also not the only thing Americans are taxed on (e.g. mortgage), correct?
“But no one ever talks about that much because therein lies the clear proof of the risk/reward and self-regulating nature of capitalism that makes it a much more just system than others.” How is it necessarily more just because of this? The way it’s put in this sentence, capitalism seems like gambling, which historically is not looked at very virtuously.
Your thoughts? I am clearly no skilled economist and I’m pretty certain you know far more about the situation than I do, but maybe these are healthy issues for us all to wrestle with.
I didn’t say that the rich did not receive tax cuts, I said it was false that people should say it’s unjust. As the link pointed out in a progressive tax system the rich pay a far higher percentage of taxes than anyone else. I don’t believe that is just.
And yes income tax is not the only tax. Property taxes, sales tax, capital gains tax exist… and guess again who pays the majority of those.
Capitalism is just in that it is merciless. Justice is receiving the consequences due you. Grace and mercy are what we receive from Christ instead of justice, but investors do not (or should not) get that from a free market.
We can certainly discuss more.
I believe that I understand your point, yet I don’t believe that a capitalistic system and it’s merciless nature are necessarily beneficial for human flourishing. Maybe we will get the best goods for the best price, but I do not believe that we can divorce the competitive market from a sort of Social Darwinism. When I look at the nature of the kingdom of God as presented in the Scripture and as it is continuously reaffirmed by the Church I do not necessarily see values congruent to a capitalistic system.
As far as the definition of “justice,” I don’t believe that the concept can be reduced simply to “receiving the consequences due you,” and I suppose you only defined in that way for the sake of brevity. But is it your understanding that a pure capitalistic system, sans grace and mercy, functions best? In other words, does the presence of grace and mercy in a capitalistic system merely throw a wrench into its proper functioning?
Javert vs. Valjean.
ELIJAH ADDS: Les Misérables, called it!