David Rubenstein seems like a nice enough guy. At least he did in Sunday’s 60 Minutes hagiographic segment, All American. But I was really struck by this comment, “The government doesn’t have the resources it used to have. We have gigantic budget deficits and large debt. And I think private citizens now need to pitch in.” There are so many things wrong with that statement. To begin with, what is a “gigantic budget deficit”? It is half the size it was only a few years ago. Pretty much all of it is due to the fact that the United States pays twice as much for its medical care as the rest of the developed world. As for resources: the government has as many of those as it ever did. Did some national parks sink into the ground or something?
I think we know what Rubenstein is saying here. The government does have as much tax revenue as it once had. That’s true! But it isn’t anything fundamental. There is a reason that tax revenues are low: people like Rubenstein have done everything they can to have their tax rates lowered, increase loopholes, and hide income. Almost all of his current income is capital gains that he pays no payroll tax on and a maximum tax rate of 20%. If you make the minimum wage, you pay 15.3% in payroll taxes on every dollar you make. So even under the best of circumstances, you pay almost as high a rate of federal taxes as does Mr Rubenstein. If you are in the middle class, you probably pay a higher rate.
But rather than Rubenstein working to make the tax rate more fair, he is out there working in “patriotic philanthropy.” What this seems to mean is that he uses his money to support high profile historical preservation. So not only does he get the thrill of buying an original copy of the Magna Carta, he gets the thrill of very publicly giving it to the nation. As he said in the segment, “I’m giving it to the country, in effect, as a down payment on my obligation to give back to the country.” Let me outsource my response to one of my favorite Iron Age philosophers:
Rubenstein paid $21.3 million for the document. That’s a small price to pay for all the publicity that he received for it. Let’s put it in perspective. Rubenstein is worth an estimated $3 billion. Imagine that you were worth one million dollars. His purchase would be equivalent to roughly $7,100 to you. So it is a decent used car. Also note: the Magna Carta really isn’t that important to this country. Ever read it? It basically just says that the king doesn’t have the right to kill other members of the aristocracy. It’s important, but hardly Enlightenment thinking.
Also from this glowing puff piece, we learned that Rubenstein has committed to giving half of his wealth away to worthy causes. That’s fine, but it doesn’t exactly make him different from the robber barons of old. But more to the point: so what?! His billions and Bill Gates’ billions and all these guys’ money is not going to do all the things that the government needs to do. What we need is a just tax system. But none of these bozos will get behind that. It’s much more fun to build an opera house or fix the Washington Monument so that the whole nation can stand up and cheer you.
The hard work of running a country is something that we should all do every day. But I don’t see the rich doing it. I just see them making themselves feel even better about themselves because of all the love they are buying. Truly I say to you, they have their reward in full.
My first wife got me into libertarianism. She was very clever and I followed right along with her ridiculous arguments. A good example was her argument against antitrust laws. The way she saw it, they were unnecessary. If one company wanted to undercut prices and throw everyone else out of business: great! That meant that we would all get cheaper prices. Once the company had its monopoly and then raised prices: no problem! That would open up a market opportunity for other companies to come in. This is a typically facile argument that doesn’t take into account start up costs and times. Nor does it deal with regional effects. It is, in other words, the perfect libertarian argument: it has little or nothing to do with the real world — thought through just long enough to make the libertarian case.
On Friday, I was really struck by something that Baltimore Mayor
While no one condones looting, on the other hand, one can understand the pent-up feelings that may result from decades of repression and people who have had members of their family killed by that regime, for them to be taking their feelings out on that regime… And I don’t think there’s anyone in any of those pictures, or any human being who’s not free, who wouldn’t prefer to be free, and recognize that you pass through a transition period like this and accept it as part of the price of getting from a repressed regime to freedom.
This is time. And this is the record of the time.
For no particular reason, I got Sarah Silverman running through my head. She writes very catchy tunes that are generally very funny. And there is something about her very sweet, positive sounding voice, and the really nasty things that she says with it. Our case in point today is, “You’re Gonna Die Soon,” where she cheers up some very old people with the thought of death. And why not? Death isn’t a bad thing — especially when you’re old. As it is, we die a little each day. Even at the relatively young age of 51, I can see that if I keep this up, I wouldn’t even notice a sudden change when I die.
As I was working to finish this book, we experienced a series of plumbing leaks in our house. The first appeared in the ceiling of a storage room. We considered ourselves genuinely lucky to have found it, because this was a room that we might have gone months without entering. A plumber arrived within a few hours, cut the drywall, and fixed the leak. A plasterer came the next day, repaired the ceiling, and painted it. This sort of thing happens eventually in every home, I told myself, and my prevailing feeling was of gratitude. Civilization is a wonderful thing.
Back almost two years ago, I wrote an article,
One of the best articles I ever wrote was, 