The Working Rich
11th September 2017
Lion of the Blogosphere explains some inconvenient truths.
As I’ve written before, that’s an old-fashioned definition of rich. Today, it’s considered low class to not have some kind of job. And the thing about the top out-of-sight rich is that because of their high social capital, in addition to their inherited financial capital, they tend to get paid a lot more money than you think relative to their actual value-creating contributions to the economy. So a top out-of-sight lifestyle can be maintained with less inherited wealth because it’s supplemented with a six-figure salary.
Furthermore, as I’ve also written before, non-transferable capital (what might be called human capital) has become a more important component of being rich. Mere ownership of assets have become a declining source of income. The dividend yield on stocks, the interest rates paid on corporate debt, have never been lower. If you’re just sitting on your assets, then your wealth is declining. I believe that the money which used to go to stockholders is now being transferred to C-level executives, investment bankers and other finance types, and to a lesser extent overpaid corporate helpers like BIGLAW partners and management consultants.
Most of the Chattering Class, and all of the Democrat Underclass base, have no clue about these simple truths.