Millions for defense, not one penny for the poor: When the Revolution Comes, They'll Be Ready

[c1ue]

http://blogs.wsj.com/wealth/2011/07/...n-the-streets/

Last year, I was at a billionaire’s home in California and I asked him to describe his biggest worry. He pointed to a 19^th century painting on the wall, which depicted a female beggar receiving alms from a wealthy gentleman and giving her patron a flower in return.

Getty Images

An auto lays on its side and crowds gather after a bomb exploded on Wall Street on Sept. 16, 1920.

“That’s what I worry about,” he said. “But instead of flowers, she’s got guns. Violence in the streets, aimed at the wealthy. That’s what I worry about.”

It turns out he wasn’t alone. A new survey from Insite Security and IBOPE Zogby International of those with liquid assets of $1 million or more found that 94% of respondents are concerned about the global unrest around the world today.

Fully 90% of respondents have a negative view of the current global economic climate and 41% say they have little or no faith that the U.S. will be able to right itself in this fiscal climate.

More than a third said security concerns have negatively affected business or investment plans.

“The survey found a seismic shift in the attitudes of the wealthy and how they are living their lives, the way they travel and how they are running their businesses,” said Christopher Falkenberg, President of Insite Security.

Of course, Insite has an interest in getting the paranoid rich to beef up their security. Still, the numbers are backed up by other trends seen throughout the world of wealth today: the rich keeping a lower profile, hiring $230,000 guard dogs, and arming their yachts, planes and cars with military-style security features.

Granted, America isn’t a country conducive to class wars in the streets (even a mention by the President of rolling back the private-jet tax breaks sparked denunciations of class warfare). But at a time when most of the country is mired in unemployment, weak housing prices and a stack of bills from the bailouts, the rich have reason to fear public resentment. And some fear even worse.

Do you think there is a risk of violence in the streets against the wealthy either here or abroad?

[touchring]

Re: Millions for defense, not one penny for the poor: When the Revolution Comes, They'll Be Ready

I can only say this - "one reaps what one sows". Don't blame it on the poor and masses when it happens.

[flintlock]

Re: Millions for defense, not one penny for the poor: When the Revolution Comes, They'll Be Ready

Do you think there is a risk of violence in the streets against the wealthy either here or abroad?

I'm afraid we are already starting to see hints of this if what I'm reading in the news lately is typical. It will only get worse. I'd say violence right now is less likely than vandalism or verbal abuse. But eventually it could turn more violent.

I'm seeing a marked increase in security related jobs from the better off customers. Better lighting, cameras, etc. They are well aware of the wealth gap and the resentment forming against them. There is a general desire on their part to avoid the riff-raff at all costs. Gated communities. Box seats at the ball game. Home Theaters, etc. They simply avoid putting themselves in a situation where anything can happen.

But then I've also started seeing middle class people ask for these security upgrades for the first time. I guess they realize "rich" is a relative term.

The so called rich definitely seem to be doing quite well now. I have seen a marked increase in the last year of luxury spending by my wealthier clients. Almost like the frivolous spending of the pre-bust times. 50 inch TVs mounted on the EXTERIOR of homes. A clothes dryer under the deck just for wet towels. A former major league pitcher showed me a quote for a $10,000 sound system around the pool. His wife asked me if I thought that was "reasonable"! No recession in their case apparently.

If the SHTF no dogs or security guards will help these people. At least not for your average run of the mill, sub division living, rich. A lot of "security" like that is merely aimed at giving them the sense of security. I'm probably safer at my home with no gate or guard than any of these people.

I cautioned my brother about buying a flashy new BMW in these times. Sure he has every right, he earned it honestly, but it also draws attention in a bad way. He has had items thrown at him and people try to run him off the road in the rural area he lives. He's had vehicles keyed before. Wealth resentment is nothing new, but it rises to the surface in times like these.

[zoog]

Re: Millions for defense, not one penny for the poor: When the Revolution Comes, They'll Be Ready

My pithy comment is:

If you don't have money, you worry about getting it. If you do have money, you worry about losing it.

[touchring]

Re: Millions for defense, not one penny for the poor: When the Revolution Comes, They'll Be Ready

My pithy comment is:

If you don't have money, you worry about getting it. If you do have money, you worry about losing it.

It is better to have a cheap and simple hobby than to have lots of money. The worst is to seek money as a hobby, it brings nothing but misery. If you're rich, you'll worry about losing it, you worry that their friends and kins, worst still your children, eye your money.

[shiny!]

Re: Millions for defense, not one penny for the poor: When the Revolution Comes, They'll Be Ready

Here's a personal anectdote:

I used to clean houses in Santa Fe. Worked for many years for a wealthy family that lived in a nice, secluded house up on Canyon Road. The Mister had come over to the USA as a kid when his Jewish family fled Europe in WWII. He was gifted in mathematics and made a fortune on Wall Street. His wife was born a few months before the Great Depression hit, and grew up dirt poor on a farm where they had to carry the water in from the well in buckets. These people had a huge art collection, but were not pretentious in any way. Their collection grew from a desire to support artists they liked. She had an amazing designer wardrobe, but she didn't buy it, she sewed it all by hand after looking at pictures in magazines! They drove old, shabby cars, had old, shabby, comfortable furniture. They believed money was to be used for good, not accrued just to have it. They read a ton of books on every subject under the sun and barely ever watched TV. Their whole family was musical and they would put on performances for their friends.

She told me that the ancient Greeks believed that the more blessed one was, the more responsibility one had to render public service. She agreed with that and that was how they lived. One day when I was cleaning I came across a scrap of paper for their accountant detailing their charitable contributions for the year. It was mind-blowing how much they gave anonymously, all to charities that helped people in need- nothing to symphonies or arts foundations. When I wanted to go to school they helped me with the money, and never let me pay it back.

She died many years ago and I still miss her. I'm still inspired by her and try to live by her example. I wish more wealthy people lived like they did.

[cbr]

Re: Millions for defense, not one penny for the poor: When the Revolution Comes, They'll Be Ready

well, the problem is much more complex than that. the wealthy have created the loopholes through which to increase wealth without risk and by which to avoid social responsibility. the poor receive tremendously (breathtakingly) expensive government benefits which perpetuate their situation and fail to make them happy. the middle class (i qualify as anyone who works full time, and must do so for at least 10 more years in order to maintain a house, cars, living expenses, and support their parents or children in fairly comfortable necessities) bears ALL of the abuse, expense, stress, fraud, etc. from both ends.

[fallout]

Re: Millions for defense, not one penny for the poor: When the Revolution Comes, They'll Be Ready

A study of history, specifically the Roman Empire of the 3rd centurye AD, will show that such is inevitably the case in a declining/collapsing empire. The wealthy buy themselves tax breaks via political favoritism, while the poor have nothing and largely live off the government (bread and circuses). The middle class tax donkeys shoulder ever larger loads to support what anthropologists term a "maintenance crisis", i.e. trying to sustain the unsustainable, and slowly slip into the poor category.
Rome would eventually make such tax obligations hereditary (bankruptcy meant that your creditors could actually demand and partition your body, i.e. slavery or death) and bound farmers to their land via law, leading to early stage Feudalism (peonage and serfdom) as the empire collapsed.

[cjppjc]

Re: Millions for defense, not one penny for the poor: When the Revolution Comes, They'll Be Ready

Here's a personal anectdote:

I used to clean houses in Santa Fe. Worked for many years for a wealthy family that lived in a nice, secluded house up on Canyon Road. The Mister had come over to the USA as a kid when his Jewish family fled Europe in WWII. He was gifted in mathematics and made a fortune on Wall Street. His wife was born a few months before the Great Depression hit, and grew up dirt poor on a farm where they had to carry the water in from the well in buckets. These people had a huge art collection, but were not pretentious in any way. Their collection grew from a desire to support artists they liked. She had an amazing designer wardrobe, but she didn't buy it, she sewed it all by hand after looking at pictures in magazines! They drove old, shabby cars, had old, shabby, comfortable furniture. They believed money was to be used for good, not accrued just to have it. They read a ton of books on every subject under the sun and barely ever watched TV. Their whole family was musical and they would put on performances for their friends.

She told me that the ancient Greeks believed that the more blessed one was, the more responsibility one had to render public service. She agreed with that and that was how they lived. One day when I was cleaning I came across a scrap of paper for their accountant detailing their charitable contributions for the year. It was mind-blowing how much they gave anonymously, all to charities that helped people in need- nothing to symphonies or arts foundations. When I wanted to go to school they helped me with the money, and never let me pay it back.

She died many years ago and I still miss her. I'm still inspired by her and try to live by her example. I wish more wealthy people lived like they did.

Sounds like a wonderful woman. Spiritually rich.

[loweyecue]

Re: Millions for defense, not one penny for the poor: When the Revolution Comes, They'll Be Ready

Very well put

[aaron]

Re: Millions for defense, not one penny for the poor: When the Revolution Comes, They'll Be Ready

A study of history, specifically the Roman Empire of the 3rd centurye AD, will show that such is inevitably the case in a declining/collapsing empire. The wealthy buy themselves tax breaks via political favoritism, while the poor have nothing and largely live off the government (bread and circuses). The middle class tax donkeys shoulder ever larger loads to support what anthropologists term a "maintenance crisis", i.e. trying to sustain the unsustainable, and slowly slip into the poor category.
Rome would eventually make such tax obligations hereditary (bankruptcy meant that your creditors could actually demand and partition your body, i.e. slavery or death) and bound farmers to their land via law, leading to early stage Feudalism (peonage and serfdom) as the empire collapsed.

Awesome post.

[c1ue]

Re: Millions for defense, not one penny for the poor: When the Revolution Comes, They'll Be Ready

A study of history, specifically the Roman Empire of the 3rd centurye AD, will show that such is inevitably the case in a declining/collapsing empire. The wealthy buy themselves tax breaks via political favoritism, while the poor have nothing and largely live off the government (bread and circuses). The middle class tax donkeys shoulder ever larger loads to support what anthropologists term a "maintenance crisis", i.e. trying to sustain the unsustainable, and slowly slip into the poor category.

Unfortunately your reading is more a Cato type version of history than reality.

For one thing, the middle class during the Roman era was very different than the middle class today - there was significant overlap with what is otherwise known as the Mob (not criminal, the mass of public demonstration in Rome a la bread and circuses).

For another thing, taxes weren't the specific reason why people got sold into slavery.

It was debt, period. There wasn't a tax system per se a la the IRS, but rather a tax farming syndicate: you bid 'x' amount to be the collector for some region with the expectation that you'd get 'x' + 'y' via your 'skills'.