We are told our nation is "broke." We are told we can't afford to solve our most basic human crises. But this is a lie of priorities, not of scarcity.
Wouldn't it be better to redistribute the wealth by feeding the hungry, housing the homeless, and healing the sick? You know, because it is the right thing to do.
Estimates show it would cost around $20 billion per year to provide the permanent supportive housing needed to effectively end chronic homelessness in the U.S.
Making the national school lunch program universally free for every child, ending "lunch debt" and child hunger at school, would cost approximately $5.6 billion per year in addition to current funding.
These are not astronomical sums. They are a rounding error for the ultra-wealthy. We could solve these profound social failures for a fraction of the annual gains on the stock portfolios of the top 1%.
Instead, we are told to worry... "Oh no, Bezos might move away! If we tax the ultra rich they will all move away!" Cool, we'd be so much better off!
First, that threat is mostly a bluff. The "irreplaceable founder" is a myth. If Bezos leaves, he doesn't get to take the Amazon warehouses, the distribution network, or the thousands of U.S. employees with him. The assets, infrastructure, and markets that generate the wealth stay right here.
Plus, academic studies and historical tax data show "tax flight" is not a real phenomenon. One of the most thorough studies on the topic was by Stanford sociologist Cristobal Young who analyzed 13 years of tax returns for every millionaire in the U.S.
He found that millionaires are the least likely group to move. They are more rooted in their communities, businesses, and social networks than the general population. The idea that they will all flee to a low-tax country is a political scare tactic, not an economic reality.
When I say we'd be "better off," I'm not just being facetious. Their departure would be a "corruption drain."
Extreme, concentrated wealth doesn't just sit there; it is used to buy political influence. It is funneled into an army of lobbyists, Super PACs, and media organizations, all designed to do one thing: skew policy, kill regulations, and lower their own taxes.
The massive financial influence strangles our democracy. It ensures that the needs of the wealthy are heard in the halls of Congress, while the needs of the people are ignored. Getting that corrupting money out of our political system is a massive net gain for a functioning society.
Finally, the redistributed money is simply better for the economy.
Wealth hoarded at the top is "low-velocity." It sits in passive stock portfolios and hedge funds inflating asset bubbles but doing nothing for the real economy.
Money given to the poor and middle class (through programs like universal school lunch or housing) is "high-velocity." It gets spent immediately on rent, groceries, car repairs, and local services. This directly stimulates Main Street, creates jobs, and builds a more stable, resilient economy from the ground up.
Taxing the rich to feed the hungry isn't just charity; it's a powerful and efficient economic stimulus.
This "high-velocity" principle doesn't just apply to one-off programs. It’s the logic that underpins the biggest progressive goals: Universal Basic Income (UBI) and Universal Healthcare (UHC).
Universal Basic Income is the ultimate economic stimulant. It's a direct, recurring cash injection to the bottom 90%, creating a stable consumer base that fuels local economies. Roosevelt Institute found that a UBI, by increasing demand, would grow the economy by 12.5% over eight years. It’s not a "handout"; it's a permanent investment in the Main Street businesses that are starved for customers.
Universal Healthcare acts as a massive economic liberation. It frees tens of millions of Americans from medical debt, which is still a top cause of personal bankruptcy. That money would be "high-velocity," but is instead is siphoned off by collection agencies and a the parasitic insurance industry.
By separating insurance from employment, UHC would finally break the "job lock" that traps millions in jobs they hate. Studies repeatedly show "job lock" suppresses entrepreneurship. The act of freeing people to take risks, start their own businesses or move to a better-fitting job would unleash a wave of innovation and economic dynamism that our current system smothers.
The choice is clear. The "lie of scarcity" is a tool used by the wealthy to protect their hoarded wealth at the expense of our society.
Sources and further reading:
American Progress - https://www.americanprogress.org/article/faith-in-values-resolve-to-end-homelessness-in-2013/
American Inequality - https://www.americaninequality.io/homelessness
Jacobin - https://jacobin.com/2023/03/universal-free-school-lunch-means-testing-education-fees
Cristobal Young - https://cristobalyoung.com/research/taxing-the-rich-millionaire-migration/
UBI (Roosevelt Institute): https://rooseveltinstitute.org/publications/macroeconomic-effects-universal-basic-income-ubi/
#longrant #rant #EattheRich #Equality #economy #homelessness #hungry #SNAP #universalhealthcare #schoollunch #universalbasicincome