From: egl1@cunixf.cc.columbia.edu (Elizabeth G. Levy)
Subject: Re: Clinton's Economic plan attacked (Wall Street Journal Aug 5)
Reply-To: egl1@cunixf.cc.columbia.edu (Elizabeth G. Levy)
Organization: Columbia University
Date: Sat, 15 Aug 1992 06:39:15 GMT

In article <8002@ncratl.AtlantaGA.NCR.COM> mwilson@ncratl.AtlantaGA.NCR.COM (Mark Wilson) writes:
>In <1992Aug13.222840.3674@news.columbia.edu> egl1@cunixf.cc.columbia.edu (Elizabeth G. Levy) writes:
>
>>In article <5924@ncratl.AtlantaGA.NCR.COM> mwilson@ncratl.AtlantaGA.NCR.COM (Mark Wilson) writes:
>>>
>>>BTW, I believe an unbiased examination of government policies would show
>>>that the government is quite hostile to capital accumulation.  In fact
>>>rich people end up getting rich despite the active opposition of government.
>>>You are arguing that rich people should pay to support this active opposition.
>
>>Let's see it.  And let's see if you yourself can make it from
>>poor to rich if you can't pay for education, health, and various other
>>sundries.
>
>Please demonstrate how any of these are necessary for capital accumulation.
>I do not believe Sam Walton had more than a high school education, but
>because he had a good idea and the courage to go out on a limb, he made
>himself rich.  In the process he benefitted a lot of other people as
>well, his employees and his customers.

There are always exceptions that you can cite as examples of the
American dream.  You may also consider the situation of the average
worker.  Pressure is put on low-skill workers because of global
competition.  Without levels of education that they cannot finance
themselves, they and their children will be relegated to the lower
economic rungs.  In terms of higher skill jobs, consider that these
days an MBA is almost required for real management jobs.  Raimi (?  He
was described in Liar's Poker), one of the big traders on Wall Street,
was able to get started 20 or 30 years ago without a high school
education, because the industry was different then (around the same
time Walmart started).  Today, Salomon Brothers demands the usual MBA,
or even better, a PhD.  Rising levels of education are needed.
Fortunately for these people, they have the means to finance this
schooling.

>
>I can see how serious ill health can hinder capital accumulation, but
>very few people fall into that category.

What about worker injury?  Carpal tunnel syndrome (which I'll probably
start suffering from after all these posts :-) will put a low-skill
worker out of action more or less permanently.  The cases of this
have increased dramatically.

>
>I am not really certain what you mean by sundries.  (Are they made with
>ice cream? ;^))

Don't forget the hot fudge.

>
>I still assert that the majority of government programs actively
>hinder capital accumulation.  Whether this is by design is a matter
>for another thread.
>
>Regulations require so much paperwork that it is better to stay small
>and hope they don't notice you.

Robert Reich relates his experience in the FTC.  Part of the reason
regulations become so complex and paper-intensive is that corporations,
under the guidance of their lawyers, probe every possible loop-hole
instead of meeting with the regulators to see what exactly is required,
and come up with an agreement (the regulators are also to blame, as they
see the situation in the same adversarial terms as the corporation's
lawyers).  The FTC is then forced to add on a few more lines to cover
that loophole.  The corporation tries again, and more lines are added
to take care of the new loophole.  And so on, until we cover reams
of paper.  Reich notes that other countries with even more extensive
regulations (Europe) don't have this problem with the paperwork.
According to him, business and regulators understand each other better,
and are able to reach an accomodation.

>
>Capital gains taxes, that when coupled with inflation can make even
>healthy investments into money loosers.

Which perhaps implies reform in the taxes, rather than simple cuts.



--
But this is.

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