Monday, September 26, 2011

Welfare For The Wealthy

My wife works in an upscale restaurant these days. We are fortunate that Washington does not allow the draconian wage of $2.13/hour established by federal law. $8/hour, while certainly not generous, makes it easier to endure a slow shift and the miserliness of some patrons. Rich patrons, in particular. She recently had the pleasure of serving, on two different occasions, members of a family that owns a large, well-known, national winery. At the end of one meal, the patriarch pulled her aside and slipped her what he clearly thought was a very generous tip. With a wink and a big-spender smile, he discreetly handed her $20 on his $110 check. Just to be clear, that's 18%. That's not a rude tip, by any means, but it certainly isn't worthy of any ostentatiousness. 


While the tipping behaviors of the wealthy are worthy of much discussion, I have a different point to make. The same gentleman I mentioned above was also treated to complimentary drinks, appetizers, and desserts by the owner of the restaurant. This is customary. A nice couple sitting across the room noticed that night. They were "nobodies" for whom this was probably their big splurge of the month. They were sad to have had their own insignificance affirmed by the comparative treatment of the elite. The still tipped my wife 20%.


Wealth and status are rewarded with free stuff everywhere they go. The more you have, the more you get. This is the great, hidden welfare doled out to the wealthy. Or, if you prefer, it is a tax on the rest of us, as our hard-earned dollars are redistributed upward in the form of complimentary swag. Consider the well-known Oscar bags tucked under the seats of the rich and famous each year. That's just the most conspicuous example. Even when they're not getting shit for free, they're paying less for it. Your mortgage broker is charging you a higher rate of interest so they can charge the rich less. 


I don't point this out because I think this petty little practice should or will stop. I simply want to call bullshit on the notion that wealth is every truly redistributed downward. It isn't. Corporate welfare - in the form of subsidies, tax breaks, and bailouts - has long dwarfed social welfare. The taxes of the middle class have built the infrastructure that has made commerce possible for the "job creators." The small retirement investments of regular people have made it possible for millionaires to make money with money.


Enough pretending that the unwealthy are a drain on wealthy. They have what they have because of us and only because of us. 

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