• when it hapend

    November 2012
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  • My Blog

    this is going to be my new blogsite for regular rants of mine.

    This hopefully will supplement my webpages.

    please, if you comment stay on subject. I am interested in feedback, especially real thoughtful feedback. if you don't agree with what i believe that's fine too, but argue about why you believe differently, if that's appropriate.

    and of course, this is for fun interest and for something to think about, not to offend anyone's ideas or beliefs.

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What the Middle Class Really Is

Many people never studied politics or sociology so they have not idea the history of the words “Middle Class.” As Wikipedia says,or tries to say, Middle Class used to mean people who own a means of production, or a capital investment.

One of the secrets of being rich, or being independently wealthy, is to have capital that on it’s own makes money. So, if you have sheep, and the sheep continually make wool, then that is an income souce that continually creates income. Property is another example. Property is rented out and continually makes money for the owner/landlord.

This is why rich people get richer. You can try to work a lot and make enough money to get ahead, but that is like re-mowing the grass. If you own a prorperty that brings in $150 per month after you pay the mortgage, and you have sheep that you can sell the wool for $100 a month after the cost of feed, then you have multiplied your income, and you have not multiplied the number of hours worked.

This is the kind of thing that rich kids know growing up. Their parents give them capital as they are growing up and teach them what they have to do to manage it. So when wealthy kids go to college they already have a lot of experience managing a business, managing property, and managing people.

So, during the Middle Ages and the Industrial Revolution, there were a lot of people who owned Capital and/or owned a means of production, a factory, rental property, a farm, et. al. Eventually, these people were able to create enough wealth for themselves that they could challenge nobles, or the elitist of early America. These self-made men were heroes then, because people thought they represented the workers.

Banks are a good example of how this works because everything they own is an instrument of capital. They take it a step further though, they have a means of production and they invest money into it so that it will bring back more money, like in the Monopoly game.

Donald Trump is a good example of this. He buys property that either rents out for him, or otherwise creates wealth, like casinos. Most of the things he owns are creating income for him.

Rich people on the other hand, are like J.R. from Dallas, if the stock market takes a dive for a couple years, their income may go down, but they have an accumulation of wealth from other means that will not be affected. Rich people have the ability to buy diamonds and gold or property, or fossil fuels, or sugar; these kind of things never go down in value no matter what happens to the economy.

So, the Middle Class is really the Almost Richey Rich class. Mitt Romney is a little confused about the Middle Class, as seen in his definition, but I really don’t think anyone can be clear about who is still in the Middle Class.  In the Huffington Post article, Joe Biden derides Romney because the Democrats say they had the same definition, though I think they are similar not alike.

Who’s right about who the Middle Class is is not important to me. What is funny is that there are a lot of people who think because they make $50,000 – $150,000 a year and work at a regular 9 – 5 job, think they are part of the Middle Class. There are some people who think because their Household makes over $100,000 a year they are part of the Middle Class.


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